Many people prefer cash back rewards to other credit card perks such as frequent flyer miles. Cash rewards programs are simple to understand and easy to redeem. Unlike points and miles, cash can earn interest when unused and its value is not subject to the constantly changing terms and conditions of credit card issuers and travel programs. (See also: How Cash Rewards Credit Cards Really Work)
My family is a perfect example of how you can use credit cards to receive cash back. Using our cards for day-to-day purchases, we may spend as much as $ 2,500 on them each month. When we are not looking for travel rewards, we use cash back cards that return between 1%-6% on our everyday purchases in order to earn an additional $ 80 a month in cash back. That equals a return of $ 960 each year that we can add to our discretionary spending or apply to our savings.
Just one word of caution — cash back credit cards should only be used by people who can pay their credit card balances in full and on time. To do otherwise virtually ensures that you will owe more in interest and penalties than you will ever receive as cash back.
The Top Credit Cards Featuring Cash Back Rewards
Once you have decided to earn credit card rewards in the form of cash back, you should definitely consider my favorite cash back rewards credit cards.
Blue Cash Preferred® Card from American Express
This information has not been updated since 8/22/23.
The Blue Cash Preferred® Card from American Express offers the highest cash back you can get for groceries. Earn 6% cash back at U.S. supermarkets (up to $ 6,000 per year in purchases, 1% after that), as well as 6% on select U.S. streaming services. 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more). The annual fee is $ 0 for the first year, then $ 95. See Rates & Fees.
Welcome offer: Earn a $ 250 statement credit after you spend $ 3,000 in purchases on your new Card within the first 6 months.
Terms apply.
Click here to learn more and apply for the Blue Cash Preferred® Card from American Express today!
While not as exciting as redeeming rewards for travel, the value in getting cold, hard cash is not to be underestimated. There’s no value in collecting travel rewards if you don’t end up using them. With cash rewards, you know you’ll always be able to use your points. Start collecting your cash rewards today!
For rates and fees of the Blue Cash Preferred® Card from American Express, please click here.
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