Alliant Cashback Visa® Signature Credit Card Review: Up to 2.5% Cash Back for Qualified Cardholders

A good flat-rate rewards card is important whether you like to maximize your credit card rewards or just want one card to rule them all. With the Alliant Cashback Visa® Signature Credit Card, you can get 2.5% cash back on purchases (on up to $10,000 in purchases each billing cycle). This rate blows most other credit cards out of the water. But there's a catch. You'll need to meet certain requirements, including opening an Alliant checking account. You'll also need to join Alliant Credit Union as a member. Read the full Alliant Cashback Visa® Signature Credit Card for all the details.

This credit card is a good fit for: Anyone looking for a high flat-rate rewards card who is willing to open an Alliant checking account to get it.

Top perks

The main perk of this card is the cash back, but there are some other money-saving benefits, too.

Earn up to 2.5% cash back on purchases

Eligible Alliant Cashback Visa® Signature Credit Card users can earn 2.5% cash back on purchases, with no categories to track or activate. (There is a little bit of hoop-jumping required to get the 2.5% cash back rate. More on that below.) That rate is good for the first $10,000 in purchases each billing cycle. Purchases over the cap will earn 1.5% cash back. This is higher than most other cash back rewards cards offer on purchases outside bonus categories.

Cash back rewards can be redeemed as a statement credit on your Alliant Cashback Visa® Signature Credit Card. You can also redeem for cash back into your Alliant checking or savings account.

No annual card fee

With some cards, you need to pay some type of annual fee to unlock a high rewards rate. The Alliant Cashback Visa® Signature Credit Card doesn't have that problem. You won't need to pay an annual fee at all. While you do need to meet some other requirements -- including opening a specific checking account -- the checking account doesn't charge any maintenance or monthly fees, either. So, any cash back you earn is a net positive, as you're not working to recoup a pricey annual fee.

See more: Best No Annual Fee Credit Cards

No foreign transaction fees

Unlike travel rewards cards, most cash back cards tend to charge a foreign transaction fee. Since foreign transaction fees can be up to 3%, this makes earning cash back while traveling almost impossible, but not with the Alliant Cashback Visa® Signature Credit Card -- this is a no foreign transaction fee credit card. This saves you money away and at home, as it applies to purchases in foreign currencies as well as purchases that route through foreign banks.

What could be improved

There are a few important roadblocks to getting and maximizing this card that may be deal-breakers for some folks.

The top rewards rate requires specific checking account activity

To get the 2.5% cash back rate, you'll need to qualify for what Alliant calls Tier One Rewards.

To do this, you'll need to meet a few checking account requirements:

• Open an Alliant High-Rate Checking account
• Enable eStatements
• Have one or more monthly electronic deposits
• Maintain an average daily balance of $1,000 or more in your account

If you meet the Tier One Rewards requirements for each month in the preceding quarter, you'll unlock the 2.5% rate the following quarter. If you don't meet the requirements, you'll earn Tier Two Rewards. This means you'll earn just 1.5% cash back on purchases. (On the plus side, there's no cap on the 1.5% rate.)

While you do need to maintain a specific balance to qualify for the Tier One Rewards, the checking account itself doesn't have a minimum balance requirement. Nor does it charge any account or maintenance fees.

Must become an Alliant Credit Union member

As with most credit unions, you need to become a member of Alliant Credit Union to be eligible for an account.

There are a few ways you can meet the membership criteria, including:

• Are a current or retired employee of an Alliant partner organization
• Are the partner or immediate family member of an Alliant member
• Live or work near Alliant's headquarters in Chicago
• Area member of Foster Care to Success (FC2S)

The last one is the most likely option for most people who live outside of the Chicago area. There's a $5 fee to join FC2S, but Alliant Credit Union apparently pays the one-time fee on member's behalf.

No welcome offer for new cardholders

Most credit cards these days have some kind of welcome offer, be it a sign-up bonus or a 0% intro APR deal -- or both. With the Alliant Cashback Visa® Signature Credit Card, you get neither.

There's no sign-up bonus at all, not even a modest $100 like other small bank cards tend to have. While the Alliant Cashback Visa® Signature Credit Card may have a higher rewards rate than other options, a $100 or $200 sign-up bonus can easily make up for a 1% difference in purchase rewards.

There's also no introductory 0% APR deal on purchases or balance transfers. The Alliant Cashback Visa® Signature Credit Card does have a lower APR range than many other cards, however, so you may get a fairly low ongoing APR. But the lack of an intro offer is still a mark against it.

Alliant doesn't post their credit score requirements. However, it's likely you'll need at least good credit to easily qualify for the Alliant Cashback Visa® Signature Credit Card. But it's worth noting that most small banks and credit unions have more relaxed credit requirements than the major issuers. As such, you may qualify for a card with a fair or average score in some cases.

This card could be a good fit if you're looking for a high cash back benefit. A flat-rate 2.5% cash back card isn't something you find every day -- especially one with no annual fee.

However, it requires both an Alliant Credit Union membership and meeting activity requirements with an Alliant High-Rate Checking Account. If this is too much work, you can browse our credit card reviews to find cards with only a slightly lower cash back rate and far fewer conditions. But if you're interested in a checking account anyway -- or think the extra 0.5% cash back is worth the hassle -- the Alliant Cashback Visa® Signature Credit Card is certainly a competitive option.

Keep reading: Best Credit Cards

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.