Do you think cash back is the best credit card rewards currency?

It is understandable that people like the idea of getting cash instead of points. Cash is tangible, but points vary in concept from card to card. If you are simply looking to get a "discount," so to speak, on the things you buy throughout the year, then cashback is probably the best option for you. If, on the other hand, you really like to travel, points are often the best deal. Of course, you can use a cashback reward to turn around and buy travel experiences, but sometimes the best deals come through points. Points can also be redeemed for gift cards, which can also be helpful not only for travel, but for many of the things you might buy anyway. Really, it just depends on what you want to get out of credit card rewards, what your interests are, and your spending habits.

Which cash back credit card(s) would you recommend to consumers?

Cashback features can be some of the most useful tools in the credit card arsenal. Of course, it depends entirely on your goals and overall strategy. Cashback can help reduce the cost of items you purchase, or even just reduce that thing no one can escape -- the cost of living. As is often the case, the best approach is not necessarily to have one credit card, but several with different benefits that let you maximize your rewards return.

One of the most interesting at the moment is the Bank of America Cash Rewards credit card. Across the board, it gives only 1% cashback, but it does give 2% on groceries and wholesale clubs (and everybody needs food). It also lets you pick one spending category in which it will give you 3% back. If you choose wisely, you could end up with a significant percentage of purchases coming back to you as a cash reward. Of course, if you have high spending in multiple categories, you'd end up getting 3% for one category that you choose, but only 1% in the rest. Assuming equal spending in each category that averages out to 2% at best. That's still not bad.

Similar to the Bank of America card is the Capital One SavorOne card. It provides 1% across the board, 2% on groceries, and 3% on all dining and entertainment. Although it lacks the flexibility of being able to choose your category for the 3%, it does provide 3% in two specific categories. If you eat out and like to take in shows that could add up to a nice reward.

The Citi Double Cash Card has 2% across the board, 1% when you buy and 1% you pay. Although it lacks the special 3% categories of the Bank of America and Capital One cards just mentioned, it gives a much higher return on general purchases. This is a good option to get cashback for general spending, not just groceries. If you combine this card with the Bank of America and Capital One cards just discussed, you could get 2% on groceries, no matter which card you use, 3% on dining and entertainment through the Capital One card, 3% on another category that you choose through the Bank of America card, and then 2% instead of 1% on everything else by using the Citi Double Cash Card. And none of these have annual fees.

American Express's Blue Cash Preferred Card is a great option for grocery spending. It gives a massive 6% cash back reward at US supermarkets on up to $6000 of purchases per year. That's a maximum cashback benefit of $360 per year. Of course, there is a catch in the form of a $95 annual fee. But, if you spend more than about $1600 per year (which is really quite easy to do), then you receive more in cashback than the annual fee. If you spend $6000 per year, when you deduct the annual fee, the effective cashback percentage is just a hair under 4.5%. That's very, very good. And if, for example, two spouses each have the card, and they spend enough on groceries for the household to justify it, they can keep the benefit going above the $6000 limit by switching grocery purchases to the second card. But that assumes, again, that household grocery spending is high enough to justify two annual fees. Otherwise it's not worth it.

The Discover It Cash Back card offers a straight 1%, but it does have special 5% deals that you can take advantage of if you activate them. It does require a bit of vigilance, but that vigilance can pay off. This one also does not have an annual fee, so it can be part of an overall strategic array of credit cards designed to maximize cashback benefit. Whatever is on a 5% deal, if it's something you need or are planning to buy, then this Discover card would the one the use.

There are several other cards that offer decent cashback, such as the HSBC Cash Rewards Mastercard, Chase Freedom Unlimited, and Capital One Quicksilver. These offer straight 1.5% on purchases, but they do have very nice cashback signing bonuses if you meet the spend requirements within the stated period. If you're into credit churning, these are definitely good options.

If you only want one credit card, look at your spending habits and figure out which one is going to give you the most return throughout the year. This will vary by individual. You may also be able to maximize your cashback return with the strategic array of credit cards chosen also according to your spending habits. Of course, it requires a credit report to be pulled every time you open a new account, so you may want to spread those out a bit. And, it should go without saying that you should never spend money you weren't going to spend and shouldn't spend just to get a reward, because that can easily undo the benefits of the reward. Also, the signing bonuses can also be an attractive option, though they are a one shot deal for each card. It all depends on your strategy and your spending habits. With careful planning and self-awareness, you can give yourself a substantial discount on the things you buy every year anyway through credit card cash rewards.