Types Of Cash Back Categories
Its important to choose a cash back credit card that aligns with the categories you spend on most frequently. Here are some examples:
- Restaurants. Whether you enjoy dining out or take out, many cash back cards are designed with foodies in mind to maximize spending at your favorite restaurants.
- Grocery stores. Cards that offer cash back on grocery store purchases are perfect for families or anyone that enjoys home cooking.
- Gas stations. Getting cash back at the pump can be especially rewarding for frequent drivers. Cards that offer cash back rewards at gas stations can be a great credit building tool as well.
- Retailers. Loyal shoppers of companies like Amazon, Walmart and Target can receive cash back on online purchases when equipped with the right card.
- Fitness. If you work out at a gym or fitness club membership, some cards offer cash back rewards on membership payments.
- Streaming services. Binge-watchers of services like Netflix, Hulu and Disney+ can receive cash back rewards on their subscription payments when using certain credit cards.
What Is A Good Apr For A Credit Card
Before you submit an application, you can see this range in the cardmember agreement. You wont know the rate until youre approved, as its determined by the issuer based on your creditworthiness. The higher your credit score, the lower the rate you can expect. Remember that with a variable rate, an issuer can change the interest it charges at any timeand, per your cardmember agreement, it may not have to notify you.
An issuer may charge a different APR for purchases, balance transfers and cash advances. It may even offer an introductory rate that includes zero interest for a period of 12 to 18 to 21 months. Lastly, a penalty APR may kick in if youre late for a payment, exceed your credit limit or break other terms and conditions laid out by the issuer.
Well say it till were blue in the face: Pay off your balance each month, and you wont have to think about interest.
Silver: Bank Of America Travel Rewards Visa
- Sign-up bonus: 25,000 points if you spend $1,000 in the first 90 days
- Typical annual rebate: 39,000 points, worth $390 in statement credits for travel or dining purchases
Get three points per dollar for each purchase you make through Bank of Americas Travel Center and 1.5 points per dollar on all other spending. You can use points at a rate of a penny apiece for statement credits to offset travel and dining purchases. If you redeem points for a check or deposit into an eligible Bank of America or Merrill account, they are worth 0.6 cent each. All of those redemptions require a 2,500-point minimum gift-card redemptions, for which point values vary, require 3,125 points.
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What Is The Best Credit Card To Rebuild Credit
If youâre looking to rebuild credit, the best card to get is a secured credit card. Your approval is guaranteed, but a security deposit is required to ensure bill payment. These cards are an excellent way to strengthen your credit, and if you continue to use it responsibly, your issuer will typically return your deposit and offer you an unsecured card within 12-18 months.
Create Category And Payment Alerts
To ensure you dont miss the opportunity to activate or choose categories, set a calendar reminder on your phone or computer. You can also set up payment alerts through most credit-card accounts, and these will issue reminders of upcoming due dates. Dont forget that, with some cards, a missing or late payment could mean forfeiting some or all of your cash back.
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Best Rewards Card For Everyday Spending
The American Express Cobalt retains its spot as one of the best credit cards in Canada for four years running thanks to its wide variety of bonus categories. Youâll earn five times the Membership Rewards points on groceries, restaurants, bars, cafÃ©s, and food deliveries, double the points per dollar on flights, hotel stays, public transportation, taxis and rideshares, 3 times the points on eligible streaming subscriptions in Canada, and one point per dollar on everything else.
The cardâs annual fee is $155.88, but charged at a more manageable $12.99 a month. As a new cardholder, you can also get 2,500 bonus points each month you spend at least $500 for your entire first year – up to a total of 30,000 points. Plus, you can earn a Welcome Bonus of 20,000 Membership Rewards points when you spend a total of $3,000 in purchases on your Card in your first 3 months of Cardmembership.
Why we like it:
Along with the cardâs strong everyday earn rate and welcome bonus, the American Express Cobalt stands out for its flexible travel redemption options.
Another great feature: it doesnât cost extra to add authorized users, so you wonât have to shell out an additional $30 to $50 in annual fees just to share the account with a loved one.
Travel insurance benefits:
Through American Express Invites, cardholders get access to ticket presales and reserved seats for concerts, movie screenings, and culinary events, along with other special offers.
Silver: Us Bank Flexperks Gold American Express
- Sign-up bonus: 30,000 points if you spend $2,000 in the first four months
- Typical annual rebate: 41,318 points, worth $535 in travel redemptions after subtracting the annual fee
Points that you earn with this card are worth an impressive 1.5 cents each when you use them to book travel through U.S. Banks Rewards Center, and you earn them at a rate of five points per dollar spent on prepaid hotels and car rentals booked through the rewards center three points per dollar on restaurant spending two points per dollar on purchases with airlines, gas stations and electric-vehicle charging stations and one point per dollar on other spending. If youd rather redeem points for cash back, they hold a respectable value of 1 cent each. Points expire five years from the end of the calendar quarter in which they were earned. Other benefits include a credit of up to $100 to reimburse a Global Entry or TSA PreCheck application fee and free Boingo Wi-Fi.
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What Are The Fees
Some cards carry zero annual fees. Others offer the same deal for the first year, and others still charge a fee from the start. You want to make sure that you’re able to earn enough cash back to cover the fees
Ultimately, cash back credit card is a good choice if you like cash rewards and you don’t carry a balance.
If you carry a balance, the interest charges will exceed the value of the cash back. At that point, we would suggest a low-interest credit card instead.
Us Bank Cash+ Visa Signature Card
Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Earn unlimited 1% cash back on all other purchases.
With the Citi Custom Cash Card, youll earn 5% back in the eligible category you spend most, up to the first $500 spent each billing cycle, then 1% back. Categories include restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, and live entertainment. You dont have to activate or choose categories each month instead, youll automatically receive 5% rewards where you spend most. You can also earn unlimited 1% cash back on all other purchases.
New cardholders may qualify for a $200 welcome bonus after spending $750 within the first three months. The Citi Custom Cash Card comes with an introductory 0% APR on purchases and balance transfers for the first 15 months. After that, theres a variable APR of 13.99% 23.99%.
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How Are The Cash Back Rewards Organized
Youd be remiss to open a new card that doesnt emphasize your spending habits.
If general spending is how you like to use credit, go for the Citi Double Cash Card or Chase Freedom cards for more versatility.
But if a large portion of your monthly spending is on groceries, a card like the Blue Cash Preferred would suit you better.
Discover It Student Cash Back: Best For Students
Why we picked it: This product is a top-notch student credit card: There is no annual fee and you can earn 5% cash back on rotating categories , up to $300 a year on the 5% offer.
Pros: At the end of your first year, Discover matches your earnings to get up to $600. Plus, theres no annual fee and no foreign transaction fees.
Cons: For students who are new to credit cards, the rotating categories may be too confusing to use to their full potential.
Who should apply? This card is an ideal match for students hoping to establish credit while also earning cash back rewards.
Who should skip? Students looking for a no-frills method for earning rewards will want to seek out a more straightforward option.
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Best Travel Credit Cards For Frequent Flyers
As its name clearly suggests, the TD First Class TravelÂ® Visa Infinite* Card is made with frequent flyers in mind. For every dollar spent on travel booked via ExpediaforTD.com , this card will earn you 9 TD points. For all your other everyday purchases, youâll get 3 TD points per dollar. For reference, 1 TD point = $0.005 when redeemed on the ExpediaforTD website, so that adds up to 4.5% in rewards on travel and 1.5% on everything else.
New applicants who apply by March 6, 2022 can earn up to 80,000 TD Points and get a full Annual Fee Rebate for the Primary and Additional Cardholders for the first year. Thatâs a total value of $570.
- Welcome Bonus of 20,000 TD Points when you make your first Purchase with your Card.
- 60,000 TD Points when you spend $1,000 within 90 days of Account opening.
Plus: get 0% promotional interest rate on Travel purchases for first 6 months^
To receive the first-year annual fee rebate, you must activate your Card and make your first Purchase on the Account within the first 3 months after Account opening. This offer is not available for residents of Quebec. For Quebec residents, please click here.
Why we like it:
This card includes an extensive suite of travel insurance benefits including $1 million in emergency medical out of province coverage, up to $1,500 in trip cancellation coverage per person, $500,000 in common carrier travel accident insurance, and more.
Silver: Capital One Savorone Mastercard
- Sign-up bonus:$200 back if you spend $500 in the first three months
- Typical annual rebate: $418
SavorOne rewards your spending with 3% cash back on restaurants, entertainment , certain streaming services and grocery stores. Redeem cash back in any amount as a statement credit or check. Cardholders also get 8% cash back on event tickets purchased with Vivid Seats and benefits with Capital One Dining, such as special events with chefs.
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Home Trust Secured Visa*
You might be new to Canada, have a problematic credit history, or are just starting out on your own financially. There are many reasons why you might need to build or rebuild your creditbut whatever the case, youll want to take steps towards achieving a healthy credit score. Thats where the no-fee Home Trust Secured Visa can come in. Unlike with conventional credit cards, its easy to be approved for a secured cardyou just need to be a resident of Canada and have a deposit. The Home Trust Secured Visa tops our list for its low minimum deposit and $0 annual fee. With this card, building your credit score is simple and affordable.
- Annual fee: $0
Citi Custom Cash Card Pros & Cons
The stands out from the crowd with a cash back program that automatically offers 5% cash back on your top eligible spending category each month .
All other purchases earn 1% cash back.
Essentially, the card maximizes the cash back based on your unique spending habits. And, it’ll adapt to your personal spending.
It’s a different approach to other cash back cards with bonus categories that may steer your purchases in a particular category.
Furthermore, the card has no annual fee.
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I Asked Some Of My Most Successful Friends What The Best Credit Cards For Gas Are And These Are Their Recommendations
When it comes to saving at the pump, using a credit with good cash back rewards is almost a must nowadays, especially considering youre going to spend money on gas anyway.
On top of that, with the rise of digital crimes at the pump like credit card skimmers, credit cards offer another layer of security between your transaction and your money in the bank.
To find out what are some of the best credit cards for cash back rewards specifically for gas, I polled a group of some of my most successful friends to find out what was in their wallets to maximize their gas savings.
These are some of their best recommendations.
What Types Of Cash
Cash-back credit cards generally fall into four primary categories: flat-rate, tiered, rotating or choose your own.
Flat-rate cards offer the same rate for every purchase. Tiered cards offer a different rewards rate for different categories of spending. Rotating category cards offer different rewards each quarter, determined by the card issuer. Choose-your-own category cards allow you to choose your rewards category.
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Rbc Cash Back Preferred World Elite Mastercard
- 19.99% for purchases, 22.99% for cash advances.
- Rewards Rate1.5% cash back on all purchases up to $25,000. Then, unlimited 1% cash back.
- Intro Offer
- Our TakeWhy we like itYou can earn unlimited cash back at a competitive flat rate on all of your purchases.Pros
- Flat-rate cash-back rewards are easy to understand and earn.
- Save on gas and earn 20% more Petro-Points at Petro-Canada.
- The insurance coverage is limited when compared to similar cards.
- Theres no welcome bonus or sign-up offer.
Our pick for bonus rewards on groceries, gas, transportation, dining and recurring payments
Silver: Farmers Insurance Federal Credit Union Crystal Visa
- Interest rate: 12.99% to 18%
- Annual fee: $99, waived the first year
- Sign-up bonus: $100 back if you spend $5,000 in the first three months
- Typical annual rebate: $750 the first year $526 from the second year on
The first year you have this card, youll rake in cash back at a rate of 3% on every purchase, with no annual fee. After that, youll get 2.5% backstill an outstanding offerand an annual fee of $99 kicks in. You collect rewards in the form of points, and theyre worth a penny each for a bank account deposit or statement credit . Anyone can become a member of Farmers Insurance FCU by joining the American Consumer Council and depositing $5 into a savings account.
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Bank Of America Business Advantage Unlimited Cash Rewards Mastercard: Best For Businesses
- Welcome bonus: $300 online bonus cash rewards after spending $3,000 within the first 90 days
- Rewards: Earn 1.5 percent cash back on all purchases
- Annual fee: $0
Why its best for businesses: Bank of America just introduced a new secured business credit card in February 2022the Bank of America Business Advantage Unlimited Cash Rewards Mastercard credit card. This business card requires a minimum security deposit of $1,000, but it helps small business owners build credit with the three major credit bureaus.
In the meantime, cardholders earn a flat 1.5 percent cash back on all purchases with no limits, and theres a welcome offer of $300 online bonus cash rewards after spending $3,000 within your first 90 days of card ownership.
Further, this card doesnt charge an annual fee and comes with travel accident insurance, auto rental insurance, emergency ticket replacement, lost-luggage assistance and travel emergency assistance services.
Is A Cash Back Card Right For You
If youre already carrying a debt balance on a credit card, you shouldnt add another credit card to the mix, no matter how good the rewards might be. Focus on paying down your high-interest debts and securing a healthy credit score before opening a cash back card.
A cash back credit card may be a great fit for you, though, if you stick to your budget, have no high-interest debts, and youre looking to add value to your purchases. If you already have another type of rewards card, adding a cash back card to your wallet can help you further maximize each purchase, as long as you pay off your balances in full each month before accruing interest.
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