Ways to get the most cash back from your credit card

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A free flight is a nice perk, but trimming $100 from a credit card bill can be just as satisfying. Cash back may not feel as glamorous as travel rewards, but it is simpler and often more practical because it can be used wherever your budget needs relief. The real difference is whether your everyday purchases earn a modest 1% return or enough to make a meaningful difference on your next statement.

By matching the right card to the way you spend and combining welcome bonuses, bonus categories and card-linked offers, you can earn more cash back on purchases you were already going to make.

Learn how you spend

Before applying for a cash-back credit card, it helps to understand your spending patterns. Do you spend heavily in certain areas, such as dining or travel, or does your spending change from month to month?

This is also a good time to think about what you want from a rewards card and how you can make the most of cash-back earnings.

One way to review your habits is to look through charges on your existing credit cards. Issuers such as Chase organize purchases by category, which makes it easier to see where most of your money goes.

Whether your biggest expenses are ride-hailing or groceries, identifying your spending pattern can help you choose the right card.

Focus on the categories where you spend the most

After you figure out where your money goes, you can choose a cash-back card that lines up with those habits. No single card earns the highest rate on every purchase, but understanding your spending can help you narrow the field to the options that fit best.

If you cook at home often, a card with a strong grocery bonus may be the best way to boost your rewards. The Blue Cash Preferred® Card from American Express is a strong option, offering 6% cash back at U.S. supermarkets on up to $6,000 in purchases each year, then 1% after that, in exchange for a $95 annual fee after the $0 introductory annual fee for the first year ends (see rates and fees).

The Blue Cash Preferred card also earns 6% cash back on select U.S. streaming services and 3% cash back on transit and at U.S. gas stations. Rewards come in the form of Reward Dollars, which can be redeemed as a statement credit or at Amazon.com checkout.

If your spending changes from one month to the next, the Bank of America® Customized Cash Rewards credit card may be a better fit. Cardholders earn 6% back in a category they choose for the first year, then 3% thereafter, plus 2% back at grocery stores and wholesale clubs on the first $2,500 in combined bonus-category and grocery spending per quarter; after that, those purchases earn 1% back.

You can change the preferred choice category once per month, which adds flexibility for changing spending habits.

Look closely at welcome bonuses

A welcome bonus can deliver a meaningful amount of cash back shortly after you open a card. Before applying, compare current offers and make sure the spending requirement matches purchases you already expect to make.

Several cash-back cards are currently offering attractive sign-up bonuses:

• Chase Freedom Flex® (see rates and fees): Earn $250 cash back after spending $500 on purchases in the first three months of account opening.
• Citi Double Cash® Card (see rates and fees): Earn $200 cash back after spending $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 spending $500 on purchases in the first three months from account opening.

Use rotating bonus categories

People with flexible spending habits may also want to consider cards with rotating rewards categories. These cards change the eligible merchants or spending categories every quarter. One quarter may emphasize gas stations and electric vehicle charging, while another may focus on restaurants.

The Chase Freedom Flex has no annual fee and earns 5% cash back on activated bonus-category purchases each quarter, on up to $1,500 in spending, then 1% after that. The Discover it® Cash Back card also earns 5% cash back on up to $1,500 in combined purchases each quarter in rotating categories, with activation required, and 1% cash back on all other purchases.

Both Chase and Discover change their quarterly categories over time, and past offerings have included well-known merchants and spending areas such as Amazon, Target, grocery stores and drugstores.

Keep two cash-back cards in your wallet

Using one bonus-category card alongside a flat-rate cash-back card can help you earn more where it matters most while still getting solid rewards on purchases that do not fit into a bonus category.

When your bonus-category card would earn less, use a card that gives 2% cash back on all purchases, such as the Citi Double Cash. It offers 2% cash back on every purchase: 1% when you buy and another 1% as you pay for those purchases.

Many issuers also provide shopping portals and card-linked deals that can be stacked with a card’s standard rewards.

For example, Chase Freedom Unlimited® (see rates and fees) and Freedom Flex cardholders can use Chase’s shopping portal to earn extra cash back on top of their regular rewards.

The retailers in Chase’s shopping portal can change, so it is worth checking which store is offering a bonus before making a purchase.

Credit cards may also come with targeted merchant offers. American Express, Chase, Capital One and Citi all provide offers that can be activated in an issuer’s mobile app or on its website to earn additional rewards. These offers usually have limited redemption windows, different cash-back rates and caps on how much cash back you can earn.

Bottom line

Cash back stands out because it is simple, and these strategies can help you boost earnings without much effort.

Still, do not ignore the math. Interest charges can wipe out months of cash back quickly, so the best approach is still the simplest one: pay your balance in full so your rewards remain a true bonus.