NEWS AFFAIRS 7 : WHERE EVERY STORY HAS IT'S AFFAIR!
Last updated on September 4th, 2024 at 09:44 am
Imagine you’re a superhero, but instead of saving the world, you’re saving money with every purchase you make. You’ve got a trusty sidekick—your cash back credit card—that rewards you for every heroic act of spending you do.
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The Quest for the Best Cash Back Credit Card
The Foodie Hero: You’re known for your superpower of devouring pizza slices faster than a speeding bullet. You need a cash back card that rewards you for dining out and grocery shopping. Think of it as having a sidekick who rewards you every time you rescue a pizza from the clutches of hunger.
The Travel Adventurer: You’re always jet-setting off to exotic locales or planning your next grand adventure. You need a card that gives you cash back on travel-related expenses. It’s like having a magic map that fills your treasure chest with rewards every time you book a flight or hotel.
The Everyday Saver: Maybe you’re more of an everyday hero who just wants to get some extra cash back on your regular purchases. You need a card that gives you a solid return on things like gas, groceries, and those occasional impulse buys. It’s like having a trusty gadget that makes sure you get a little reward for every dollar spent.
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Picking Your Sidekick for 2024:
Compare Rewards: Look for cards that offer the best cash back rates for your spending habits. Some cards offer higher rewards for certain categories like dining or travel.
Check for Fees: Make sure the card doesn’t have high annual fees that could eat into your rewards. Your sidekick should be cost-effective and not take more than it gives.
Look for Sign-Up Bonuses: Many cards offer big rewards just for signing up and spending a certain amount within the first few months. It’s like getting a bonus superpower to start your heroic journey.
By choosing the right cash back card, you’ll have a superhero sidekick that turns your everyday spending into extra rewards. Whether you’re saving for your next adventure or just enjoying a pizza, your cash back card will help you make the most of every dollar spent.
Why Choose a Cash Back Credit Card?
Before we jump into the best cards, let’s talk about why you might want a cash back credit card in the first place. Unlike points or miles, which often come with restrictions on how you can redeem them, cash back is straightforward. You spend money, you get money back. It’s that simple. You can use your rewards to pay off your balance, save for a rainy day, or splurge on something special. Plus, many cash back cards come with additional perks like no annual fees, sign-up bonuses, and 0% intro APR offers. Now, let’s get into the good stuff.
Top Cash Back Credit Cards for 2024
1. Chase Freedom Flex℠
Why It’s Great: The Chase Freedom Flex℠ is one of the most versatile cash back cards out there. It offers a rotating 5% cash back on categories that change each quarter, plus 3% on dining and drugstores, and 1% on everything else.
Best For: People who don’t mind keeping track of rotating categories and want to maximize cash back on specific purchases throughout the year.
Perks:
5% cash back on up to $1,500 in combined purchases in bonus categories each quarter (you need to activate these).
3% cash back on dining, including takeout and delivery services.
3% cash back on drugstore purchases.
1% cash back on all other purchases.
Sign-up bonus: Earn $200 after spending $500 in the first three months.
Drawbacks:
You have to remember to activate the 5% categories every quarter.
The 5% categories may not always align with your spending habits.
2. Blue Cash Preferred® Card from American Express
Why It’s Great: The Blue Cash Preferred® Card is a superstar for families and anyone who spends big at U.S. supermarkets and on streaming services. With 6% cash back on up to $6,000 per year at U.S. supermarkets and on select streaming services, it’s hard to beat.
Best For: Families, grocery shoppers, and streamers.
Perks:
6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
6% cash back on select U.S. streaming subscriptions.
3% cash back at U.S. gas stations and on transit (including taxis, rideshares, parking, tolls, trains, buses, and more).
1% cash back on all other purchases.
Sign-up bonus: $250 after spending $3,000 in the first six months.
Drawbacks:
The $95 annual fee (waived for the first year) might be a dealbreaker if you don’t spend enough to justify it.
6% cash back on groceries is capped at $6,000 per year.
3. Citi® Double Cash Card
Why It’s Great: Simple, straightforward, and rewarding. The Citi® Double Cash Card offers 2% cash back on all purchases—1% when you buy and 1% when you pay. No need to worry about rotating categories or spending limits.
Best For: People who want a no-fuss, high-reward card.
Perks:
2% cash back on all purchases—1% when you make a purchase, and an additional 1% when you pay for those purchases.
No annual fee.
0% intro APR for 18 months on balance transfers (then, 18.99% – 28.99% variable).
Drawbacks:
There’s no sign-up bonus.
Balance transfers are subject to a fee (the greater of $5 or 3% of each transfer).
4. Discover it® Cash Back
Why It’s Great: Discover it® Cash Back is all about the match—at the end of your first year, Discover will match all the cash back you’ve earned. That means if you earn $300 in cash back, they’ll give you another $300.
Best For: New cardholders who want to maximize cash back in their first year.
Perks:
5% cash back on up to $1,500 in purchases in rotating categories each quarter (you need to activate these).
1% cash back on all other purchases.
Cashback Match: Discover will automatically match all the cash back you’ve earned at the end of your first year.
No annual fee.
Drawbacks:
Like the Chase Freedom Flex℠, you need to activate the 5% categories each quarter.
The 5% categories may not always match your spending habits.
5. Capital One SavorOne Cash Rewards Credit Card
Why It’s Great: Foodies and entertainment lovers, this one’s for you. The Capital One SavorOne offers 3% cash back on dining, entertainment, popular streaming services, and at grocery stores.
Best For: Those who spend big on dining out, entertainment, and groceries.
Perks:
3% cash back on dining, entertainment, popular streaming services, and grocery stores (excluding superstores like Walmart and Target).
1% cash back on all other purchases.
No annual fee.
Sign-up bonus: $200 after spending $500 in the first three months.
Drawbacks:
3% cash back is great, but there are cards with higher rewards in specific categories.
There’s a foreign transaction fee, so it’s not the best card for international travelers.
6. U.S. Bank Cash+® Visa Signature® Card
Why It’s Great: This card is all about customization. You get to choose two categories where you’ll earn 5% cash back (on the first $2,000 in combined eligible purchases each quarter) and one category where you’ll earn 2%.
Best For: People who want to tailor their cash back rewards to their spending habits.
Perks:
5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose.
2% cash back on one everyday category, like gas stations, grocery stores, or restaurants.
1% cash back on all other purchases.
Sign-up bonus: $200 after spending $1,000 in the first 120 days.
No annual fee.
Drawbacks:
The $2,000 quarterly cap on 5% cash back is relatively low.
You need to remember to choose your categories each quarter.
7. Wells Fargo Active Cash® Card
Why It’s Great: The Wells Fargo Active Cash® Card is one of the best flat-rate cash back cards available, offering unlimited 2% cash back on all purchases. Plus, it comes with a generous sign-up bonus and 0% intro APR on purchases and qualifying balance transfers.
Best For: People who want a high flat-rate cash back card with extra perks.
Perks:
2% cash back on all purchases.
Sign-up bonus: $200 after spending $1,000 in the first three months.
0% intro APR for 15 months on purchases and qualifying balance transfers (then, 20.24%, 25.24%, or 29.99% variable APR).
No annual fee.
Drawbacks:
Balance transfers come with a fee (the greater of $5 or 3% of the amount of each balance transfer).
No bonus categories for higher cash back in specific spending areas.
How to Choose the Right Cash Back Card for You
With so many great options, how do you choose the right cash back credit card for your needs? Here are a few tips to help you decide:
1. Evaluate Your Spending Habits
Take a close look at where you spend the most money. Do you spend a lot on groceries, dining out, or gas? Or do you prefer the simplicity of a flat-rate cash back card? Knowing your spending habits will help you choose a card that maximizes your rewards.
2. Consider the Annual Fee
Some of the best cash back cards come with an annual fee, but that doesn’t mean they’re not worth it. If the rewards you’ll earn outweigh the cost of the fee, it could still be a great option for you. Just make sure you’re doing the math.
3. Look at the Sign-Up Bonus
A sign-up bonus can give you a nice boost in cash back, especially if you have a big purchase coming up. But don’t let the bonus be the only deciding factor—make sure the card’s long-term rewards align with your spending.
4. Check for 0% Intro APR Offers
If you’re planning to make a large purchase or transfer a balance, a card with a 0% intro APR offer can save you money on interest. Just be sure you have a plan to pay off the balance before the intro period ends.
5. Don’t Forget About Additional Perks
Many cash back cards come with extra benefits like purchase protection, extended warranties, travel insurance, and more. These perks can add significant value, so consider them when choosing your card. For instance, if you travel frequently, a card that offers travel insurance or no foreign transaction fees might be a better fit, even if it doesn’t have the highest cash back rate.
6. Think About Long-Term Value
While a card with a great sign-up bonus might be tempting, think about how the card will work for you in the long run. Does it offer consistent rewards that align with your spending habits? Are the perks worth keeping the card for several years? It’s important to choose a card that will continue to provide value, not just one that offers a quick reward.
7. Understand the Redemption Options
Different cards offer different ways to redeem your cash back. Some allow you to redeem your rewards as a statement credit, direct deposit, or even gift cards. Others might let you redeem for travel or other experiences. Make sure the card you choose has redemption options that fit your lifestyle.
8. Consider Customer Service and Card Issuer Reputation
A card with great rewards is only as good as the customer service that backs it. Look for reviews or ask friends about their experiences with the card issuer. Companies known for good customer service can make your experience much smoother, especially if you ever run into issues with your account.
9. Plan for the Long Game
If you’re serious about maximizing your cash back, it might be worth considering more than one card. For example, you could use one card for groceries and gas, another for dining and entertainment, and a flat-rate card for everything else. This strategy can help you optimize your rewards across different spending categories.
How to Maximise Your Cash Back Rewards
Now that you’ve chosen your card, it’s time to make the most of it. Here are some tips to help you maximize your cash back rewards:
1. Use the Right Card for the Right Purchase
If you have multiple cash back cards, use each one where it earns the most rewards. For instance, use your Blue Cash Preferred® Card at the grocery store and your Chase Freedom Flex℠ for dining out. This might take a little extra effort, but the rewards will add up.
2. Take Advantage of Bonus Categories
For cards with rotating categories, like the Chase Freedom Flex℠ or Discover it® Cash Back, make sure you activate the categories each quarter. Plan your spending around these categories to maximize your 5% cash back.
3. Use Your Card for All Eligible Purchases
To really rack up the rewards, use your cash back card for as many purchases as possible. Just be sure to pay off your balance in full each month to avoid interest charges, which can quickly eat into your cash back earnings.
4. Look for Special Offers and Promotions
Many card issuers offer special promotions that can help you earn even more cash back. Keep an eye on your email or check your card issuer’s website regularly for offers like bonus cash back on specific purchases or limited-time deals.
5. Redeem Your Rewards Wisely
While it might be tempting to cash out your rewards as soon as you earn them, sometimes it pays to wait. Some cards offer higher value when you redeem for certain things, like travel or gift cards. Check your card’s redemption options to see if there are any ways to stretch your rewards further.
6. Monitor Your Spending
Keeping track of your spending not only helps you stay within your budget but also ensures you’re making the most of your cash back categories. Some credit card apps even offer spending analysis tools that can show you where you’re earning the most rewards.
7. Pay Your Balance in Full
This one’s crucial: always pay your balance in full each month. Carrying a balance not only leads to interest charges but can also negate the benefits of earning cash back. After all, what’s the point of earning 2% cash back if you’re paying 18% in interest?
The Bottom Line: Which Card Should You Choose?
The best cash back credit card for you ultimately depends on your individual spending habits and financial goals. Whether you’re looking for a card with high rewards in specific categories, a flat-rate card for consistent earnings, or a card with no annual fee, there’s a great option out there for you.
If you’re someone who likes to optimize every purchase, consider getting more than one card to maximize your rewards across different spending categories. On the other hand, if you prefer simplicity, a flat-rate card like the Citi® Double Cash Card or the Wells Fargo Active Cash® Card might be the best fit.
Whatever you choose, remember to use your card responsibly. Pay off your balance in full each month, take advantage of bonus categories, and keep an eye out for special promotions. With a little planning and discipline, you can turn your everyday spending into a powerful tool for earning cash back.
So, ready to pick your card and start earning? 2024 is full of opportunities to make the most of your cash back rewards, and now you’re equipped with all the knowledge you need to choose the best card for your needs. Happy spending, and even happier earning!
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