Charles Schwab offers two main credit cards through its banking platform
Charles Schwab issues two credit cards: the Charles Schwab Bank Investor Cash Back Card and the Charles Schwab Bank Unlimited Cash Back Card. Both cards earn cash back on purchases and are designed for people who already bank or invest with Schwab, though you do not need an existing account to open one. The cards have no annual fee and no foreign transaction fees, which sets them apart from many competitors in the cash back category.
The main difference between the two is how they earn rewards. The Investor card offers tiered cash back rates depending on your account balance at Schwab, while the Unlimited card offers a flat cash back rate on all purchases. Neither card carries an annual fee, and both deposit rewards directly into your Schwab brokerage or bank account.
These cards are issued by Charles Schwab Bank, which is a subsidiary of Charles Schwab Corporation. The cards are Visa cards, so they work anywhere Visa is accepted. If you do not have a Schwab account yet, you can open one at the same time you request a card.
Key Takeaways
- Charles Schwab offers two cash back cards with no annual fee and no foreign transaction fees.
- The Investor card rewards rates depend on your Schwab account balance, while the Unlimited card offers a flat rate on all purchases.
- Cash back rewards are deposited into your Schwab brokerage or bank account, not issued as a separate statement.
- You do not need an existing Schwab account to open a card, but you will need to open one during the process process.
- Both cards require a credit check and have standard credit card terms, including interest rates and late payment fees.
How the Investor card rewards structure works
The Charles Schwab Bank Investor Cash Back Card earns cash back at different rates based on your total Schwab account balance. The rates tier upward as your balance grows. For example, at lower balance levels you might earn one rate, and at higher balance levels you earn a higher rate. The exact tiers and percentages change periodically, so you should check Schwab's website or call their customer service line to see the current structure before you open the card.
This card is designed for people who already have money invested or saved at Schwab and want to earn additional rewards on everyday spending. If your balance is low or you do not plan to keep money at Schwab, the flat-rate Unlimited card may be a better fit.
Cash back is calculated on net purchases (purchases minus returns and credits) and is posted to your Schwab account monthly. You cannot redeem cash back for a statement credit or a check; it goes directly into your brokerage or bank account at Schwab.
How the Unlimited card rewards structure works
The Charles Schwab Bank Unlimited Cash Back Card earns a flat cash back rate on all purchases with no categories, no caps, and no spending tiers. This means every dollar you spend earns the same percentage back, regardless of whether you are buying groceries, gas, or travel. The rate is the same whether you have $100 or $100,000 at Schwab.
Like the Investor card, cash back is posted monthly to your Schwab account. You do not receive a separate rewards statement or the option to redeem for cash; the rewards are automatically added to your brokerage or bank account balance.
The Unlimited card is simpler to use if you do not want to track spending categories or worry about whether your Schwab balance qualifies you for a higher rewards tier. It is also a good choice if you are new to Schwab and do not yet have a large account balance.
What you need to open a Charles Schwab credit card
To open either card, you will need to be at least 18 years old and a U.S. citizen or permanent resident with a valid Social Security number. You will also need a current mailing address and a phone number. Schwab will run a credit check, so your credit history and current credit score will factor into whether you are approved and what interest rate you receive.
If you do not already have a Schwab account, you will open one during the card process process. This requires a small initial deposit to fund your account. You can open a brokerage account, a bank account, or both, depending on what you need. The account opening is done online and typically takes 10 to 15 minutes.
Once your card is approved, it will be mailed to your address. Schwab typically ships cards within 5 to 7 business days. You can set up the card online or by phone once it arrives.
Interest rates, fees, and other card terms
Both Charles Schwab credit cards charge interest on balances you carry from month to month. The interest rate (called the Annual Percentage Rate, or APR) varies based on your creditworthiness and current market conditions. Schwab will tell you the APR you may have access to for before you complete your process, so you can see the exact rate before you decide to proceed.
Neither card has an annual fee, and neither charges foreign transaction fees if you use the card outside the United States. Late payment fees, over-limit fees, and returned payment fees explore if you miss a payment or exceed your credit limit, just as they do with other credit cards.
Both cards offer a grace period for purchases, which means you will not pay interest on new purchases if you pay your full statement balance by the due date. If you carry a balance, interest accrues daily on that balance.
How cash back deposits work and when you see the money
Cash back earned on both cards is deposited into your Schwab account once per month, usually around the middle of the month. The deposit appears as a credit to your brokerage account or bank account, depending on which account type you linked to the card during setup. You can change which account receives the deposits by logging into your Schwab account online.
Once the cash back is in your account, it is yours to use however you want. You can leave it invested in your brokerage account, transfer it to your bank account, or use it to fund other investments. There is no separate redemption process or waiting period.
Cash back is calculated on net purchases only, meaning returns and credits reduce the amount of cash back you earn. If you return an item, the cash back earned on that purchase is reversed in the following month's deposit.
Comparing the two cards side by side
| Feature | Investor Card | Unlimited Card |
|---|---|---|
| Annual Fee | None | None |
| Foreign Transaction Fees | None | None |
| Cash Back Structure | Tiered by Schwab account balance | Flat rate on all purchases |
| Best For | People with substantial Schwab balances | People new to Schwab or with smaller balances |
| Rewards Deposit | Monthly to Schwab account | Monthly to Schwab account |
| Credit Check Required | Yes | Yes |
Frequently Asked Questions
Do I need an existing Schwab account to open a credit card?
No. You can open a Schwab account and a credit card at the same time during the online process. Schwab will guide you through opening a brokerage account, a bank account, or both as part of the process. You will need to make a small initial deposit to fund the account.
Can I use the cash back rewards to pay my credit card bill?
Yes. Once the cash back is deposited into your Schwab account, you can transfer it to your bank account and use it to pay your card bill. You can also set up an automatic transfer from your Schwab account to your credit card account to pay the bill each month.
What happens to my rewards if I close my Schwab account?
Cash back that has already been deposited into your account is yours to keep. If you close your Schwab account, you will still have access to that money. However, future cash back will stop being deposited once the account is closed, so you should plan ahead if you are thinking about closing your account.
Can I transfer my cash back to another bank?
Yes. Once cash back is deposited into your Schwab account, you can transfer it to any external bank account you own. Schwab allows external transfers through their online platform, and the transfer typically takes 1 to 3 business days depending on your bank.
What credit score do I need to be approved?
Schwab does not publish a minimum credit score requirement. Approval depends on your overall credit history, current credit score, income, and other factors. You can check your approval odds before you formally explore by using Schwab's pre-qualification tool on their website, which does not affect your credit score.