There are tons of cash bonus credit cards that offer you money for meeting a spending requirement in the first few months. These cards are a good way to get a hefty rebate on your purchases at the start, especially if they also have no annual fee. But it’s important to remember that initial bonuses are just that – initial. You’ll want to choose a card that provides great everyday perks even after you earn the bonus.
Today’s best cash bonus credit cards:
American Express Cash Magnet® Card
Blue Cash Preferred® Card from American Express
Capital One® Savor® Cash Rewards Credit Card
Chase Freedom Unlimited®
Capital One® Quicksilver® Cash Rewards Credit Card
Ink Business Cash℠ Credit Card
Some cash bonus credit cards offer the same cash back rate on all purchases. Other cards give even higher earning rates in certain bonus categories – for example, gas or groceries.
This information is accurate as of August 2019. Terms apply.
The best cash bonus credit card is Capital One Savor because it offers a $300 cash bonus for spending $3,000 in the first 3 months. That’s a 10% return. In addition, the Savor card offers more than just a one-time bonus. Cardholders always get 4% cash back on dining and entertainment, 2% at grocery stores and 1% on everything else. Savor does charge an annual fee of $95.
Another great option is the Amex Blue Cash Preferred card. Its initial cash bonus is $250 for spending $1,000 in the first 3 months. While that’s a smaller bonus than the Savor card offers, it’s a 25% cash return on the money you have to spend to get it. Blue Cash Preferred also offers 6% cash back on the first $6,000 spent per year at U.S. supermarkets and gives unlimited 6% back on select U.S. streaming subscriptions. That’s on top of unlimited 3% cash back on transit purchases and at U.S. gas stations, as well as 1% back on all other purchases. The card comes with a $95 annual fee.
Cash back credit cards are worth it if the value of the cash back is greater than the cost of the card. The best cash back credit cards with the highest rewards rates and signup bonuses sometimes have annual fees. In that case, you need to be sure the cash back that you earn will offset the cost of the annual fee (and then some). For cash back cards that have no annual fees, the cash back is free money as long as you don’t get charged interest.… read full answer
Many cash back credit cards let cardholders earn more cash back than the cost of the annual fee. However, what you really want is a card that allows you to earn cash back as efficiently as possible. Some cash back cards give a flat cash back rate for all purchases. There are also cash back cards that will reward you more for bonus categories, like gas, groceries, or dining. The highest flat cash back rate is 2.5%. For bonus categories, you can earn up to 6% cash back.
Wherever you spend the most money on your credit card will determine whether a flat-rate cash back card is better for you, or a card that’ll earn you bonus cash back in specific categories. How many credit cards you want to have in total matters, too, as does your credit standing. The better your credit is, and the more income you have relative to your debt, the more credit card options you’ll have and the more worthwhile they’ll be.
If you’re looking for a new cash back card, check out the best cash back credit cards and find the one that’s most worth it for you. But remember, as with any card, you need to be sure to use a cash back credit card responsibly for it to be worthwhile in the long run. No credit card, regardless of the cash back rate, is worth it if you overspend and find yourself in debt with a damaged credit score.
The short answer is yes, you may want to have more than one rewards card, especially if you get an airline miles credit card. Most airline credit cards are best when used solely for airline spending. And that leaves plenty of other purchases in need of a good earning rate. So it’s wise to fill the void with a … read full answercash back credit card or a travel rewards card that is equally rewarding on all purchases.
Of course, this all depends on whether you pay your credit card bills in full every month. If you do, getting different rewards cards for each of your biggest expense categories is a great idea. But if you don’t plan to pay in full, you’ll save more by using a 0% or low-interest credit card for purchases that will lead to an end-of-month balance.
The practice of using multiple cards to serve a collection of specific purposes is called the Island Approach. And trying it makes more and more sense the better your credit is. People with good or excellent credit have far more options and far fewer fees, after all.
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