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Maximizing Cash Back Rewards: The Best Practices

Selecting the ideal cashback credit card depends on your spending, how and where you use the card. Here’s how to make the most of cash back credit cards!
Maximizing Cash Back Rewards: The Best Practices
Make sure you redeem your cash back by requesting for a statement credit, bank deposit, or physical check in the mail, depending on what your issuer offers before it expires.
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Cash back is the most malleable of credit card rewards. Instead of wondering how to redeem the point, you get real dollars or cents to spend anywhere you want.

Selecting the ideal cashback credit card depends on your spending i.e., how and where you use the card. You can earn a cash reward varying from 1% to 10% of the total amount on each transaction. 

Types of Cash Back Credit Cards

  • Flat-rate cash back: Low but same amount of cash back, regardless of whatever purchase you make and with less hassle.
  • Tiered bonus cash back: Cash back on a limited number of purchases (usually groceries and gas stations) with a higher rate and the rest 1% rate on every other purchase. 
  • Rotating cash back: Highest cash back rate (up to 5%) on some purchases and 1% on every other purchase with high hassle & feature bonus categories that change periodically and require activation.

Ways to Use Cash Back Credit Cards

1. Chase Freedom Unlimited

The reward rate can be best used at travel, dining, and drugstores with the interest varying from 1.5%- 6.5% cashback. You won’t have to pay any annual fee or any minimum to redeem cash back. There is 0% intro APR on purchase and balance transfer up to 15 months from account opening.

2. Wells Fargo Active Credit Card

With a 0% annual fee and 0% intro, APR on purchases & balance transfer, Wells Fargo’s Active credit card is a flat-rate card that provides 2% cash back on every purchase. You can earn up to a $200 cash-back reward bonus after spending $1,000 in the first three months.

3. Capital One SavorOne Cash Reward Credit Card

This card has no annual fee and helps you regenerate cash back from 1% – 10% depending on the sector it is used at.

  • It gets you unlimited 3% cash back on dining, entertainment, and popular streaming services and at grocery stores with an additional reward of 1% on every purchase.
  • 10% cash back on purchases made through Uber & Uber Eats.
  • Gain unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.

4. Citi Double Cash Card

The stalwart Citi Double Cash Card is highly concentrated because of its pure value and simplicity. As a flat-rate card, you’ll earn 2% on every purchase with unlimited 1% cash back when you buy and an additional 1% as you pay for those purchases. No annual fee is required.

5. Chase Freedom Flex

The Chase Freedom Flex offers rewards of 1.5% cash back on everything and up to 5% in specific categories. There is also a generous bonus for new cardholders.

It is proven best for travel bookings at drugstores and restaurants, with no minimum to redeem for cash back and no annual fee. You can redeem points as long as the account is open.

6. Blue-cash Preferred Card From American Express

Although the annual fee is high on this card, since it’s one of the finest and premium quality cards, it is suitable for families that spend a lot on groceries, gas, transit, and streaming.

Cashback up to 6% on supermarkets and selected U.S. streaming subscriptions and a 3% rate at gas stations & transit. All other purchases can earn 1% cash back on the total amount.

7. Capital One Quicksilver Cash Rewards Credit Card

You can earn 1.5% of cash back on every purchase with no minimum billing to redeem the cash back. New cardholders acquire a 0% intro APR period for purchases. 0% intro APR on purchases and balance transfers for 15 months & also you earn 5% cash back on hotels and rental car booking through Capital One Travel.

8. Costco Anywhere Visa Card by Citi 

This card is suitable for earning cash back when you want to fill up your tank at gas stations as it provides 4% cash back on gas and electric vehicle charging purchases. Earn up to 3% on dining & travel, 2% on other Costco purchases, and 1% on all other purchases. It has a 0% annual member fee, but you have to apply for a Costco membership.

Conclusion

Ensure to redeem your cashback by calling for a statement credit, bank deposit, or physical check in the mail. While it will depend on what your issuer will offer, make sure to redeem your cashback before it expires.

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Author

Picture of Fatema Yusuf

Fatema Yusuf

A passionate writer, who loves to write about anything and everything. She usually writes about finance and investment options. She enjoys talking about personal development and loves to help people grow. she loves to cook for kids and upcycle old stuff to give them a new life.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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