How to maximize cash back with your credit card
Editor's Note
Credit cards come in many different "flavors," offering cardholders rewards like points, miles or cash back. Cash-back rewards are a longstanding perk within the world of credit cards, which offer a simple way to earn a return on everyday expenses.
Cash-back credit cards offer varying rates of return, and it's important to understand how to maximize cash-back rewards. Using the right card to earn cash back on everyday purchases such as gas, dining and groceries maximizes your earning potential. Here's what you should consider.
Understand your spending habits
Before applying for a new cash-back credit card, it's important to evaluate your spending habits to see how you spend your money. Are there specific categories you spend in, such as dining and travel? Or do you see that your spending habits are flexible and change every month or every few months? This is also a great time to evaluate what you want from your rewards credit card and how you would maximize cash-back rewards.
To understand your spending habits, take some time to review charges on any existing credit cards. Issuers like Chase assign categories to charges on their cards, making it easy to discern the areas where you spend the most money. Whether you're spending on travel-related purchases such as ride-hailing services and public transportation or on groceries, mapping out your spending habits will help you pick the best card.
Once you've identified how you are spending, you can then select a credit card that complements your typical spending habits.
Find a card with the best sign-up offer
One of the greatest benefits of opening a new card is being rewarded with a sign-up bonus after meeting a card's spending requirements. Before applying for any card, it's a good idea to research what is currently offered before selecting a card.
Ideally, you want to find a cash-back offer that provides the largest bonus with a spending requirement that's easy to meet. Earning a large sign-up bonus is a great way to jump-start your entry into cash-back credit cards.
The following are several cash-back credit cards offering solid welcome bonus offers:
- Chase Freedom Flex® (see rates and fees): Earn $200 cash back after you spend $500 on purchases in the first three months of account opening.
- Citi Custom Cash® Card (see rate and fees): Earn $200 cash back after you spend $1,500 on purchases in the first six months of account opening.
- Capital One Quicksilver Cash Rewards Credit Card: Earn a $200 cash bonus after you spend $500 on purchases in the first three months from account opening.
The information for the Citi Custom Cash has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: The best cash-back credit cards
Choose a credit card that matches your spending
No perfect cash-back credit card matches all your spending habits. However, you can get pretty close to perfect. Categories and bonus-earning rates differ based on issuers and the different types of cash-back cards. After evaluating your spending habits, time should be devoted to researching the various credit cards in the marketplace.
For those who enjoy cooking at home, a bonus-earning rate on groceries might be the best way to maximize cash-back rewards. The Blue Cash Preferred® Card from American Express is an excellent choice as it offers 6% cash back at U.S. supermarkets (on up to $6,000 per year, and then 1% cash back thereafter), all for a low $95 annual fee once the $0 introductory annual fee for the first year is up (see rates and fees).
Additionally, Blue Cash Preferred cardmembers also earn 6% cash back on select U.S. streaming services and 3% cash back on transit and at U.S. gas stations. Members receive cash back in the form of Reward Dollars that they can redeem as a statement credit and at Amazon checkout.
If your spending habits change from month to month, a card to consider would be the Citi Custom Cash. It offers cardholders 5% cash back on their top eligible spending category on up to $500 spent each billing cycle and 1% unlimited cash back on all other purchases. Every month, cardholders can easily earn at least $25 in cash back if they spend at least $500 in their top spending category — a good return for those being rewarded for their flexibility.
Related: Cash back vs. travel rewards: How to choose a credit card
Activate rotating bonus categories
Maximizing cash-back credit cards includes being mindful of how certain cards earn cash back and the right time to use specific cards. This brings us to rotating rewards categories certain issuers offer on select cash-back credit cards. Cards with rotating rewards categories give cardholders a list of merchants or categories eligible for increased cash-back earnings every quarter.
For those who have flexible spending habits, the right cash-back credit card may offer rotating bonus categories. The Chase Freedom Flex has no annual fee; it earns a strong 5% cash back on purchases in activated bonus categories each quarter on up to $1,500 in purchases, then 1% after that. Bonus categories are announced every quarter, and they have historically included great categories such as Amazon, Target, grocery stores, drugstores and gas stations.
Carry 2 cash-back credit cards
As you seek to maximize your cash-back rewards with cards that offer bonus-earning categories, a useful strategy to further maximize rewards is to carry a flat-rate-earning cash-back credit card.
The ideal card should give you 2% cash back on all purchases, so you don't need to keep track of rotating quarterly bonus categories. You could use a flat-rate credit card to make purchases that fall outside the categories of your bonus-earning cash-back card.
The Citi Double Cash® Card (see rates and fees) is a fantastic flat-rate credit card that offers 2% cash back on all purchases — 1% cash back when you make a purchase and 1% cash back as you pay for your purchases.
Utilize issuers' shopping portals and special offers
Credit card issuers give card-linked offers for online and in-person shopping. Chase Freedom Unlimited® (see rates and fees) and Freedom Flex cardholders can access the Shop Through Chase portal, which allows them to earn additional cash back on their purchases on top of the earning bonuses for each card. The stores on Chase's shopping portal vary and can change occasionally, so it's worth looking into which shop is offering a bonus and maximizing cash-back rewards.
In addition to issuer shopping portals, credit cards also provide cash-back offers, which can be activated to earn even more rewards. American Express, Chase, Capital One and Citi all have offers that can be activated via an issuer's mobile app or website. Generally, these offers have a limited redemption window, varying cash-back percentages and limits on how much cash back you can earn from each offer.
Bottom line
You can maximize cash-back rewards by understanding your spending habits, choosing a card that matches your spending, utilizing opportunities such as activating bonus-earning categories each quarter, and taking advantage of issuer shopping portals and offers. Cash-back cards are a great addition to any wallet. However, it's important to remember that any cash back earned can easily be negated if you carry balances on your card and accrue interest.
Related: Are cash-back cards worth it?
For rates and fees of the Amex Blue Cash Preferred, click here.
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.