Among the dizzying array of rewards credit cardsCashback credit cards are characterized by their simplicity. The rewards you generate for purchases made with a cashback credit card do not need to be converted, transferred, or strategically redeemed to maximize the value. You only get cash into an account or a credit on your monthly bill.
The top of these cards is that it takes less effort and effort to make money in fairly broad bonus categories. The downside is that your net premium rate is usually slightly lower than if you signed up for a credit card with a complex earnings and redemption process like the one you get Mileage cards.
Trouble-free cash-back awards are usually automatically applied to your credit balance by credit card issuers after one or two billing cycles and, depending on your spending, can put a lot of money back into your wallet. Most consumers can earn between 2% and 4% overall one of the best cards. So if you spend $ 15,000 annually, that means an annual cashback reward of between $ 300 and $ 600.
Continue reading: Best tax software for 2020: TurboTax, H&R Block, TaxSlayer and more
To find out which cards Make sense to youI selected eight high quality options from the crowded market. Some are toll-free flat rate credit cards that earn the same amount on all purchases. Some offer a sign-up bonus and cashback. Some are limited to certain categories of expenses (e.g. groceries, restaurants, gasoline, transit, or travel) but have a higher premium rate, while others charge an annual fee. I’ve also listed important information for each car, including whether the card has a transfer fee, bonus redemption thresholds, and introductory APR. I also mention the credit requirements for the cards – not based on your individual FICO credit rating, but in general.
I’ve organized the list by group, starting with the simplest cluster and ending with the most complex reward structures.
In order to estimate the value of each card for one person and to assess which spending situations make sense for each card, I used data from the Bureau of Labor Statistics. Consumer survey.
Best cashback credit cards
| map | Best for | Reward rates | Bonus for new members |
|---|---|---|---|
| Chase Freedom Unlimited® | Best flat rate card with bonus | Unlimited 1.5% cashback on every purchase | $ 200 after $ 500 in the first three months |
| Citi® Double Cash Card | Best flat rate card for higher expenses | Unlimited 2% on every purchase (1% on purchase, 1% on payment of purchase) and 1% on all other purchases | $ 0 |
| Wells Fargo Propel American Express® card | Best free card in the category | Unlimited 3% cashback for restaurants, travel, transit and selected streaming services, 1% discount on all other purchases | $ 200 after $ 1,000 within the first three months |
| Bank of America® Cash Rewards credit card | Best quarterly reward card / best for online purchases | 3% cashback in the selection category (petrol, restaurants, travel, online shopping, drugstores, DIY / home furnishings) and 2% cashback in grocery / wholesale clubs up to USD 2,500 per quarter, 1% discount on all other purchases | $ 200 after $ 1,000 within the first 90 days |
| Visa signature card from Amazon Prime Rewards | Best for buyers from Amazon and Whole Foods | 5% at Amazon, Whole Foods; 2% in restaurants, petrol stations, drugstores, 1% on all other purchases | $ 100 Amazon Gift Card upon approval |
| Apple Card | Best for ordinary Apple buyers, instant rewards, and privacy | 3% on Apple, Uber and Walgreens purchases, 2% on Apple Pay purchases and 1% on all other purchases | $ 0 |
| Capital One® Savor® Cash Rewards credit card | Best for restaurants and entertainment | Unlimited 4% cashback for restaurants and entertainment, 2% for grocery stores and 1% for all other purchases | $ 300 after $ 3,000 in the first three months |
| Blue Cash Preferred® from American Express | Best for large grocery bills | 6% cashback on groceries in US supermarkets up to $ 6,000 a year, then 1%. 6% for select US streaming services, 3% for transit and US gas stations, 1% for all other purchases | $ 250 after $ 1,000 within the first three months |
The simplest: Free flat rate cards
Best flat rate card with bonus
chase
Reward rates: Unlimited 1.5% cashback on every purchase
Annual fee: $ 0
Bonus for new members: $ 200
Bonus redemption threshold: $ 500 in the first three months
Credit request: Good to excellent
Intro APR: 0% on purchases and residual transfers (15 months)
APR for purchases: 16.49% to 25.24% variable
APR for balance transfers: 16.49% to 25.24% variable
Remaining transfer fee: 5% (at least $ 5)
The simplest cashback cards are those with flat rates and no fees. The Chase Freedom Unlimited card offers a flat-rate, unlimited 1.5% refund on all purchases regardless of the spending category and does not charge an annual fee. It’s a good introductory card to the world of cashback rewards.
Reward details
Chase Freedom Unlimited offers a $ 200 bonus after spending $ 500 in the first three months (one of the lowest bonus thresholds I’ve found – see table), but offers a slightly lower total price (1.5%) than the Citi Double Cash Card (higher) up to 2.0%). Half a percent may seem negligible for cashback rewards, but it adds up to an additional $ 50 per $ 10,000.
When is this card used?
For your general credit card strategy, Chase Freedom Unlimited may be the only card in your wallet if you want to simplify it, or your preferred card if you buy something outside of another bonus category, e.g. B. a plane ticket if you don’t. You do not have a card with bonus points for travel purchases. It can also be useful if you combine it with a card that earns Chase Ultimate Rewards points, as you can convert your rewards into points that can add value. Note that cards that offer a higher percentage in certain categories, like the 4% of Capital One Savor for restaurants and entertainment, offer only 1% discount on all other categories. So it’s worth having a flat rate card like Freedom Unlimited on hand for purchases that don’t fall into the bonus categories of your other card.
Redemption details
You can redeem any amount of Chase Points either as a bank account balance on your invoice or as a direct deposit into your bank account. The redemption flexibility is a nice advantage over other cards that only allow redemptions at certain levels, e.g. B. 2,500 points or $ 25.
Best flat rate card for higher expenses
CitiBank
Reward rates: Unlimited 2% cashback on every purchase
Annual fee: $ 0
Bonus for new members: $ 0
Bonus redemption threshold: None
Credit request: Good to excellent
Intro APR: 0% on remaining transfers (18 months)
APR for purchases: 15.49% to 25.49% variable
APR for balance transfers: 15.49% to 25.49% variable
Remaining transfer fee: 3% (at least $ 5)
Reward details
The Citi Double Cash Card is as simple as the Chase Freedom Unlimited, but one of the few cards that don’t offer a sign-up bonus. The compromise with the lack of a sign-up bonus is an above-average cashback rate.
When is this card used?
Like Freedom Unlimited, the Citi Double Cash Card can be the only card in your wallet or your preferred card if you buy something outside of a bonus category.
It is noteworthy that a 3% transaction fee is charged for this card when you make a foreign transaction. While prepayment is offered, the fee is either $ 10 or 5% of each prepayment.
Redemption details
Citi’s rewards can be redeemed starting at $ 25 and can either be in the form of a check or credit to the account statement. One redemption difference for the Citi Double Cash Card is that you get 1% back when you make a purchase and the second 1% when you pay your bill. Since I recommend paying your bill in full every month, I don’t really care about this breakdown.
Continue reading: How to master your budget for 2020
The main difference between the two cards above is the cashback rate and the initial bonus. Citi’s card is best long-term, while Chase gives you instant reward points.
Once you’ve spent $ 40,000 on the Citi Double Cash Card, make up for the $ 200 bonus, and anything that happens after that is added value. With Chase Freedom Unlimited, your total return is up to $ 40,000 better. So if you think long term, the additional 0.5% of the Citi Double Cash Card will pay off. If you only spend $ 15,000 a year on a cashback card and only look at it for the next two years, Chase Freedom Unlimited makes more sense. A graphic representation of the two cards can be found below. ‘
CNET
Continue reading: 7 things you should know about interest-free credit cards
From this point on we enter the strategic area, so I will rate cards based on how and when you use them. All remaining cards have different cashback percentages depending on the type of purchase, so different spending habits lead to different results. While there may be one or two cards that make sense as your only card, most of them are best when combined with other cashback cards so you don’t make too many purchases outside of a bonus category.
Best free card in the category
Wells Fargo
Reward rates: Unlimited 3% cashback (3x points) on restaurants, travel, petrol stations, transit and selected streaming services, 1% (1x points) on everything else
Annual fee: $ 0
Bonus for new members: $ 200 (20,000 points)
Bonus redemption threshold: $ 1,000 in the first three months
Credit request: Good to excellent
Intro APR: 0% on purchases and residual transfers (12 months)
APR for purchases: 15.49% to 27.49% variable
APR for balance transfers: 15.49% to 27.49% variable
Remaining transfer fee: 5% (at least $ 5)
Reward details
Wells Fargo Propel offers the best combination of reward rate (unlimited 3% or 3x points) and breadth of categories (restaurants, gas, transit, travel and streaming services). The cash bonus (20,000 points, which equates to $ 200 after spending $ 1,000 in the first three months, which corresponds to a cash redemption of $ 200), corresponds to the industry standard of $ 150 to $ 200.
When is this card used?
Since the bonus categories do not rotate and the card covers a lot of ground, I recommend using it with the Citi Double Cash Card or Chase Freedom Unlimited for spending outside the bonus category. Keep in mind that there is little reason to log a purchase where you only earn 1% when there are 1.5% and 2% earners without a fee.
Redemption details
Propel cash rewards can be redeemed either as a deposit into a Wells Fargo account or as a bank statement credit. The minimum redemption amount is 2,500 points ($ 25).
Reward comparison
The card closest to the Wells Fargo Propel is probably the Capital One Savor card, which charges 4% for restaurants and entertainment, 2% for grocery stores, 1% for everything else, and an annual fee of $ 95. For the additional 1% to cover the $ 95 fee, you would have to spend nearly $ 800 a month ($ 9,500 a year) on restaurants and entertainment. So if you’re not spending so much on food and entertainment, the Wells Fargo Propel is the better choice for cash-back award cards.
Continue reading: DC Comics has its own credit cards with superhero motifs
Best card category / best for online shopping
Bank of America
Reward rates: 3% cashback in the selection category (gas, food, travel, online shopping, drugstores, do-it-yourself / facility); 2% back in grocery / wholesale clubs up to $ 2,500 per quarter; 1% on everything else
Annual fee: $ 0
Bonus for new members: $ 200
Bonus redemption threshold: $ 1,000 in the first 90 days
Credit request: Good to excellent
Intro APR: 0% on purchases and residual transfers (15 months)
APR for purchases: 15.49% to 25.49% variable
APR for balance transfers: 15.49% to 25.49% variable
Remaining transfer fee: 3% (at least $ 10)
Reward details
The Bank of America Cash Rewards card is one of the “rotating bonus categories”, which means that the category that generates the 3% reward changes over the course of the year. Unlike most other bonus cards that have quarterly rotations or a rewards program set up, the Bank of America version lets you choose your category (up to once per calendar month) from a list of six: gasoline, online shopping, food , Travel, drugstores or do-it-yourself and furnishings.
When is this card used?
Given the flexibility of the rewards program, I recommend using this card to fill a gap in your spending strategy. If you have a flat rate card, a grocery card, and a restaurant and travel card, but spend more than $ 100 a month on online purchases, you can sign up for the Bank of America Cash Rewards card, ” Online shopping “and treat it as your online spending card. I use the online shopping category specifically because it is less common than categories like gasoline or food, but you can of course choose the category that makes the most sense for your spending habits.
I do not recommend this card if you travel a lot overseas. It has a 3 percent foreign transaction fee.
Redemption details
You can redeem BankAmericard cash rewards for any amount at any time and have them deposited into a Bank of America or Merrill account, or redeem them as bank statement credits.
Reward comparison
Other bonus category cards, such as Chase Freedom or Discover It Cash Back, switch through three or four different categories throughout the year, making it difficult to maximize rewards or pair the card with other cards. This distinguishes the flexibility and choice of the Bank of America card.
While Netflix does not (yet) have a credit card, most of the other members of the FAANG group have made significant efforts to channel payments through their systems in recent years. Facebook goes the cryptocurrency route, Google Pay is one thing and now both Amazon and Apple have their own cashback credit cards. Even Verizon goes into the credit card game.
Best for buyers from Amazon and Whole Foods
Amazon
Reward rates: 5% at Amazon, Whole Foods; 2% in restaurants, petrol stations, drug stores; 1% on everything else
Annual fee: $ 0
Bonus for new members: $ 100 Amazon gift card
Bonus redemption threshold: Card approval
Credit request: Fair
Intro APR: None
APR for purchases: 15.74% to 23.74% variable
APR for balance transfers: 15.74% to 23.74% variable
Remaining transfer fee: 5% (at least $ 5)
This card is a must for anyone who regularly buys from Amazon. I won’t even offer a recommended minimum threshold as there is no downside and few other cards offer Amazon-specific discounts.
Reward details
Given that you can buy just about anything on Amazon, a 5% refund against the popular online retailer is pretty sweet. The card also throws 2% in restaurants, gas stations and drug stores and 1% on all other purchases. While Amazon offers a simple non-Prime membership card with a 3% discount on Amazon purchases, I focus on the Prime Reward Card because I expect you will make a significant number of purchases (over $ 250) from Amazon each month or Whole Foods, you are most likely a Prime member.
When is this card used?
If you shop a ton at Amazon and Whole Foods and spend most of your spending in restaurants and gasoline, the Amazon Prime Rewards card may be your only cashback card. Outside of this specific spending profile, however, I recommend using this card like the others – as a complement to a flat rate card to earn money on purchases from Amazon and Whole Foods.
Redemption details
You can redeem points at checkout while shopping on Amazon, redeem for any amount, or as a Chase credit from 2,000 points ($ 20). Note that Amazon (obviously) supports the Amazon redemption option and does not mention cash. However, it is actually a royalty-free option that can be redeemed at the same price.
Reward comparison
The only other card you might want to use for Amazon purchases is the Bank of America Cash Rewards card, which offers a 3% discount on online purchases (if you choose this bonus category this quarter), which includes Amazon and owned by a number of other online retailers. The percentage is 2% lower than on Amazon. However, if you shop at different online retailers, this may make more sense. With a few quick calculations, you will find that the Bank of America Cash Rewards card earns the most rewards if more than half of your online purchase is not from Amazon. Alternatively, to get the most money back, sign up for both toll-free cards and use the BofA version for purchases outside of Amazon.
Continue reading: The best minimalist wallets for 2020
Best for ordinary Apple buyers, instant rewards, and privacy
Apple
Reward rates: 3% on purchases from Apple, Uber and Walgreens; 2% on Apple Pay purchases; 1% on everything else
Annual fee: $ 0
Bonus for new members: $ 0
Bonus redemption threshold: None
Credit request: Fair
Intro APR: None
APR for purchases: 12.49% to 23.49% variable
APR for balance transfers: Not offered
Compensation transfer Fee: Not offered
Reward details
The Apple credit card has a unique rewards program structure that offers 3% on Apple, Uber and Walgreens purchases (to say the least, a versatile combination of categories), 2% on Apple Pay purchases and 1% on everything else. But if you’re not an Apple Super Shopper and an everyday Uber user, the 3% category won’t be particularly noticeable. If you need to use Apple Pay to get 2% off, that’s bad compared to the Citi Double Cash Card, which offers up to 2% on everything regardless of how you pay. However, Apple’s card has several advantages.
Other benefits
The Apple credit card Privacy Policy states that they “never share or sell your information to third parties for marketing or promotional purposes,” an important gesture for those who are concerned with their personal information. The premium structure of the Apple Card also differs in that the cashback is immediately shown in your account and reaches your credit at the end of each day. So if you can’t wait a month or two to redeem points, and another 4 to 5 days for a bank statement credit to go into your account, the instant Apple Card rewards can be attractive.
When is this card used?
If the primary 3% category (Apple, Uber, and Walgreens) applies to many of your purchases, this is a good cashback option. However, the 2% for Apple Pay is somewhat low, as not all retailers accept Apple Pay, while the Citi Double Cash Card offers up to 2% no matter what. This card is primarily intended for those who are interested in the privacy policy and immediate rewards of the card.
In conclusion, I would like to point out that Apple has made the low APR and lack of late payment fees a big deal, but given our operational assumption that you’ll still be paying your credit on time every month, I see that as a less differentiating factor. Note that the Apple Card does not report credit activity to all three major credit bureaus (TransUnion only). So if you try to improve your credit rating, it will have less of an impact.
Ah, now we’re looking into every cashback credit card. These two cards are rarely your single cards unless your total spending is heavily focused on one category. However, they can earn you 2% to 4% more in certain categories, making them worth the annual fee if you reach certain spending thresholds in those categories.
With an annual fee of $ 95 for each card, you need to be a little more careful when deciding whether a card is worth it. Having extra cards in your wallet usually has little downside (unless you don’t pay them off every month) and even helps your creditworthiness by increasing all of your available balance. However, these fee cards will charge you $ 95 each year, regardless of how often you use them. So take a break to make sure they make sense before you apply.
I recommend two in this category: the Capital One Savor card, which is great for dining and entertainment, and the American Express Blue Cash Preferred card for groceries. Both offer a decent sign-up bonus ($ 250 and $ 300 respectively), but the Blue Cash Preferred threshold is much easier to reach ($ 1,000 in the first three months versus $ 3,000 in the first three months for the Savor).
Best for large grocery buyers
American Express
Reward rates: 6% cashback on groceries in US supermarkets up to $ 6,000 / year (less than 1%). 6% for select US streaming services, 3% for transit and US gas stations, 1% for everything else
Annual fee: $ 95
Bonus for new members: $ 250
Bonus redemption threshold: $ 1,000 in the first three months
Credit request: Good to excellent
Intro APR: 0% on purchases and residual transfers (12 months)
APR for purchases: 13.99% to 24.99% variable
APR for balance transfers: 13.99% to 24.99% variable
Balance transfer fee: 3% (at least $ 5)
Reward details
The headline rate is 6% in U.S. supermarkets with a cap of $ 6,000 a year. After that, the rate is 1%. If you hit the limit, you will be rewarded with this 6% with $ 360 a year. The reward cap is a bit annoying, but since it is $ 500 a month for groceries, it usually doesn’t come into play until you are a family of three or more. The Blue Cash Preferred card also offers a 6% discount on streaming services, but since most Americans pay a maximum of $ 40-50 a month (and spend a lot less) on select US streaming services, this part of the reward is only about $ 35 annual value.
For most, the $ 250 bonus threshold is very easy to reach, so you can basically consider it safe. In contrast to the current offer from Capital One Savor, the annual fee is not waived for the first year.
When is this card used?
Given the very generous 6% cashback rate, you only need to spend about $ 140 a month on US supermarket purchases to offset the fee, and about $ 200 a month to earn the same amount of rewards as you do with 2% would do. Cash back card. So if you spend more than $ 200 a month on groceries and streaming subscriptions, it becomes a profitable card. The real sweet spot is between $ 350 and $ 500 a month, where you can make the most of this 6%.
I should also note that there is a free version of the Blue Cash card called Blue Cash Everyday. Given the bonus difference ($ 250 for Preferred vs. $ 175 for Everyday) and the huge cashback difference (6% in U.S. supermarkets vs. 3%), it was difficult for me to find many situations where the free card would be better.
Redemption details
You can redeem AmEx points only as statement credits, without the possibility of redeeming them for travel, gift cards or deposits into a checking account. The minimum redemption threshold is $ 25.
Best for restaurants and entertainment
Capital one
Reward rates: Unlimited 4% cashback for restaurants and entertainment, 2% in grocery stores, 1% on all other purchases
Annual fee: $ 95 (waived in first year)
Bonus for new members: $ 300
Bonus redemption threshold: $ 3,000 in the first three months
Credit request: Good to excellent
Intro APR: None
APR for purchases: 15.99% to 24.99% variable
APR for balance transfers: 15.99% to 24.99% variable
Balance transfer fee: None **
Reward details
The $ 300 bonus is a good incentive to sign up and effectively cancels the annual fee for the first three years. However, keep in mind that the bonus threshold of $ 3,000 is quite high. As a result, you may need to use the card for spending outside the bonus category in the first few months to ensure that you achieve it. You’ll sacrifice a few percentage points of rewards from other cards, but it’s worth making sure you don’t give up $ 300 – just do the math to make sure it makes sense.
The headline rate of the Savor card is 4% for restaurants and entertainment, including bars and restaurants for dining and “tickets for a movie, a play, a concert, a sporting event, a tourist attraction, a theme park, an aquarium, a zoo, a dance club, pool hall or bowling alley “for entertainment. If you like most American consumers Those who spend more on food than entertainment should note the emphasis on this part of the bonus.
When is this card used?
This card is useful if you spend more than $ 300 a month on restaurants and entertainment. If so, I recommend putting only those purchases on it. There’s no reason to get the 1% penalty for shopping outside of the restaurant and entertainment. Use your 1.5% or 2% card for this.
Redemption details
You can redeem your Capital One Savor points in the form of a bank statement credit or as a check of any amount (no minimum thresholds or maximum earnings limits).
** 3% of the amount of each credit transferred to your account for a special APR offered by us.
How we chose the best cashback credit cards
To determine the best cashback credit cards, we looked at 18 popular cards and looked for cards that offer the best total financial value. This means that we look at the total net value for each reward credit card instead of prioritizing perks or offers that quickly lose value after the first login. In the end, the reward credit card with the largest sign-up offer is not always considered the best card.
We prioritized cash-back credit cards that reward broad spending categories where Americans tend to spend substantial sums of money (like eating, traveling, and grocery shopping), rather than narrow categories like streaming services or “home improvement”. Then we compared reward offers with potential returns based on hypothetical spending budgets. These hypothetical budgets are mainly based on the Bureau of Labor Statistics consumer spending survey, in which several members of the CNET staff are also subjectively involved. These evaluations are shown in the form of graphics in our list.
How do cashback credit cards work?
Cash-back credit cards offer cardholders rewards for their expenses in the form of bank statement balances or cash. A bank statement credit is a reduction in the amount that the credit card company is entitled to on your monthly bill. Note that awards are not always available in the month you earn them. Credit card issuers typically apply them to your funds after one or two billing cycles.
The cashback credit card redemption process is either automatic or very simple. Some cards, such as the Bank of America Cash Rewards card, automatically apply cash rewards to your bank statement balances every month. For others, like the Wells Fargo Propel card, you need to sign up and redeem available Go Far Rewards points for bank statement credits. Most points do not expire, but you lose them if you close the account before you redeem them. Some, like Citi, expire after one year of inactivity.
Cash back credit cards generally fall into four main categories: flat rate, tiered, rotating, or choose your own.
Flat rate cards offer the same price for every purchase. Dies sind Karten wie die Citi Double Cash, die 2% Rabatt auf jeden Einkauf bietet, oder die Chase Freedom Unlimited, die 1,5% Rabatt auf jeden Einkauf bietet.
Abgestufte Karten bieten unterschiedliche Belohnungssätze für verschiedene Ausgabenkategorien an. Ein Beispiel ist die Amazon Prime Rewards-Kreditkarte, die 5% Rabatt auf Einkäufe bei Amazon und Whole Foods, 2% in Restaurants, Drogerien und Tankstellen und 1% auf alles andere bietet.
Rotierende Kategoriekarten bieten vierteljährlich unterschiedliche Prämien an, die vom Kartenaussteller festgelegt werden. Mit Karten Ihrer eigenen Kategorie können Sie Ihre Prämienkategorie auswählen, z. B. die Bank of America Cash Rewards-Karte, die 3% Rabatt auf die Kategorie Ihrer Wahl, 2% Rabatt auf Lebensmittel und 1% Rabatt auf alles andere bietet.
Sollten Sie eine Cashback-Kreditkarte erhalten?
Wir empfehlen Cashback-Kreditkarten für alle. Da selbst die besten Karten keine Jahresgebühr erheben, die meisten einen Anmeldebonus anbieten und der Einlösungsprozess sehr einfach ist, gibt es im Wesentlichen keine Nachteile beim Halten einer Cashback-Kreditkarte.
Die Hauptnachteile sind die Zahlung von Zinsen für einen Kontoauszugssaldo (von dem wir dringend abraten) und die Verpflichtung, Ihre Ausgaben aufgrund der Belohnungsstruktur zu erhöhen. Studien haben gezeigt, dass Verbraucher beim Bezahlen mit Kreditkarte dazu neigen wesentlich mehr ausgeben als bei Barzahlung, bis zu 83% mehr in manchen Fällen. Aus diesem Grund ist es wichtig, sorgfältig zu überwachen, ob Sie bei Verwendung einer Kreditkarte mehr ausgeben oder nicht. Wenn Sie 50% mehr für das Essen ausgeben, nachdem Sie 4% Cashback für die Kreditkarte erhalten haben, tun Sie sich letztendlich nichts Gutes.
Cash-Back-Kreditkarten sind auch ideal für diejenigen, die nur eine Art von Prämienkarte im Vergleich zu vielen möchten. Zum Beispiel würde eine der Flatrate-Kreditkarten, wie die Citi Double Cash-Karte oder die Chase Freedom Unlimited, Ihnen als einzige Kreditkarte in Ihrem Portemonnaie dienen. Im Gegenteil, wenn Sie mehrere Rechnungen bezahlen und unterschiedliche Karten für unterschiedliche Einkäufe verwenden können, ergänzen Cash-Back-Karten andere Arten von Prämienkarten. Angenommen, Sie haben beispielsweise eine Reiseprämien-Kreditkarte, mit der Sie auf Flügen 5-fache Punkte erhalten. Sie können diese Karte für Ihre Flugreservierungen und Ihre Flatrate-Cashback-Karte für alles andere verwenden.
So wählen Sie eine Cashback-Kreditkarte
Um die richtige Cashback-Kreditkarte auszuwählen, ist es wichtig, eine klare Vorstellung davon zu haben, wie Sie bereits jeden Monat Geld ausgeben. Wir empfehlen Ihnen, Ihre Ausgaben in den letzten drei bis sechs Monaten aufzuzeichnen und die Ausgaben in Kategorien wie Restaurants, Lebensmittel und Benzin aufzuteilen. (Budgetierungsseiten wie Minze – oder sogar Ihre aktuelle Bank – führen Sie diese Nachverfolgung automatisch durch). Wenn Sie die Kategorien identifiziert haben, in denen Sie die höchsten und beständigsten Ausgaben haben, verwenden Sie die Diagramme in unserer Liste, um zu bestimmen, mit welcher Karte Sie die höchste Rendite erzielen. Vergleichen Sie dann nach der Anmeldung für eine Kreditkarte Ihre Ausgaben im selben Zeitraum mit dem Zeitraum vor dem Erhalt der Kreditkarte. Wenn Sie Unstimmigkeiten feststellen, insbesondere bei großen, sollten Sie für diese Einkäufe Bargeld verwenden oder einfach notieren, wie Sie diese früher ausgegeben und abgeglichen haben.
Erst nachdem Sie festgestellt haben, welche Karte die beste Prämienrate für Ihre Kategorien aufweist, sollten Sie sich die zusätzlichen Vergünstigungen und Angebote wie Anmeldebonusse, Gebühren für Auslandstransaktionen oder die Deckung von Mietwagen ansehen und feststellen, welche – falls vorhanden – von ihnen gelten für Sie und wie wichtig sie sind. Einige mögen wertvoll erscheinen, sparen Ihnen aber kein Geld, wie eine Karte, die keine Gebühren für Auslandstransaktionen erhebt, wenn Sie nie ins Ausland reisen.
Die jährlichen Prozentsätze (APR) bestimmen den Zinsbetrag, den Sie im Laufe des Jahres für jedes Guthaben auf Ihrer Kreditkarte zahlen. Angesichts unseres Ratschlags, Ihre Prämienkreditkarte anstelle von Bargeld zu verwenden und niemals ein Guthaben bei sich zu haben, sind APRs der am wenigsten einflussreiche Faktor. Die meisten Kreditkarten bieten einen variablen Jahreszins im Bereich von 15% bis 25%, abhängig von der Karte und Ihrer speziellen Kreditwürdigkeit. Im Vergleich zu Belohnungsraten sind diese Zahlen hoch. To like 5 bis 10 mal höhere als durchschnittliche Belohnungsraten. Wenn Sie ein Guthaben auf Ihrer Kreditkartenabrechnung haben, löschen Sie diese und einige weitere Prämien. Aus diesem Grund empfehlen wir, Ihr Guthaben jeden Monat vollständig zurückzuzahlen.
However, fünfundfünfzig Prozent der Amerikaner Zahlen Sie nicht jeden Monat den Restbetrag Ihrer Kreditkarte aus. Wenn Sie Probleme haben, Ihre Kreditkartenrechnung jeden Monat zu bezahlen, priorisieren Sie dies vor allem anderen. Erst wenn Sie sich von Schulden befreit haben und keine Zinsgebühren mehr zahlen, sollten Sie eine Prämienkarte in Betracht ziehen.
Ihre Kreditkartenauswahl kann auch von Ihrer Kreditwürdigkeit beeinflusst werden. Most of the cards we recommend require a good or excellent credit score, which is typically around 650 or higher. If you don’t meet the credit criteria required, there are credit cards available that are specifically for those trying to rebuild credit, like secured credit cards.
How to maximize cash back rewards
The most important strategy for maximizing cash back rewards might be surprising: don’t overspend. Once you start earning points and bonuses and rewards for spending, you may be tempted to try to rack up your rewards, but that will get you further away from your financial goals, not closer. Cash back rewards are a great way to earn a little money back on current spending, but as soon as you spend more than you normally would just to get rewards, the net value will be negative. One way to avoid overspending is by using a budgeting app that keeps you honest, like You Need A Budget.
The second tip is to never miss a payment. If you have to pay a late payment fee or an interest payment for an outstanding balance, your losses will eclipse your rewards very quickly. We recommend paying off your credit card bill twice a month to be safe, or opting into automatic payments.
Finally, to maximize cash-back rewards, consider adding two or three different credit card offers to your wallet. Cards often target just one or two categories, so you may need to enlist several cards to maximize the returns on your spending. That being said, you also need to factor in the time and energy you spend on credit card rewards. At a certain point, the perfect strategy may be too time-consuming and stressful.
Different types of credit cards to consider
Cash back credit cards are good for the majority of consumers, but there are also other types of rewards credit cards to consider. Travel rewards credit cards, for example, are great for those who travel often or who want to upgrade their travel experience with perks like airline lounge access or upgrades. Travel credit cards reward cardholders with points or miles, like Chase’s Ultimate Rewards points or American Express’ Membership Rewards points, that can be redeemed for travel purchases.
For those who need to build or rebuild their credit score, secured credit cards and student credit cards are the best options. While many cash back and travel rewards cards require good to excellent credit, these other types of cards help those with lower scores build your credit over time. Secured credit cards require an up-front deposit in the amount of the credit line, so you’re basically making a loan to the bank in exchange for credit history. Student cards are designed to help young people without a credit history build credit for the first time. Both usually come with a low credit limit and higher likelihood of approval.
There are also “club” credit cards that are only available to people who are members of a credit union, brokerage, or other type of membership club. Those include credit union credit cards like the Alliant CU Visa, retail cards like the Costco credit card, the Target RedCard, and the Sam’s Club MasterCard, or the Fidelity cash back credit cards for Fidelity account holders.
Finally, business credit cards, like the Chase Ink Business line of cards or the Business Platinum Card from American Express, are for small businesses and even contractors and freelancers and geared toward logging business expenses. A business credit card will usually offer rewards for categories such as internet and phone bill expenses, office supplies, and other business-related purchases.
Disclaimer: The information included in this article, including program features, program fees and credits available through credit cards to apply to such programs, may change from time-to-time and are presented without warranty. When evaluating offers, check the credit card provider’s website and terms and conditions for the latest offers and information. Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
The comments on this article are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved, or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.