If you’ve got good credit and you’re not using a rewards credit card, you’re missing out. In fact, even if you are using a rewards credit card, there’s a good chance you aren’t maximizing your potential rewards.
Airline and travel credit cards often offer points and miles you never end up using. Cash back cards are great because the rewards they offer are something everyone wants: more money. However, not all cash back credit cards are the same. Different cards offer greater rewards for different spending habits, so it’s important to make sure you have one that’s a good fit for you.
These are the best cash back credit cards on the market according to different spending habits.
Highest rewards: Discover It – Cashback Match or Chase Freedom
Discover It – Cashback Match and Chase Freedom both offer 5% cash back in a different category that you activate each quarter, on up to $1,500 in spending quarterly. Bonus categories have included gas stations, grocery stores, or Amazon.com and wholesale clubs. You’ll earn an unlimited 1% back on all other purchases automatically. Neither card has an annual fee.
The difference between the two cards are two different bonus perks. The Chase Freedom offers a sign-up bonus of $150 if you spend $500 in the first three months. On the other hand, the Discover It – Cashback Match offers to match all of the cashback you earn at the end of your first year. This means that during your first year, you’re essentially earning 10% cashback on bonus categories and 2% cashback on all other purchases.
Annual savings: Up to $510 with the Chase Freedom and $720 with the Discover It – Cashback Match in your first year, if you spend $1,000 per month and max out your bonus categories each quarter.