If you’re not getting cash back then you need to reevaluate your life.
Harsh but it’s true. Many people, that are very financially literate tend to shy away from credit cards, and for good reasons. Financial guru/debt screamer Dave Ramsey is completely against credit cards due the temptation to abuse them. To be fair he’s has a point, it takes some real self discipline to have a $10,000 credit limit and not use it, AND not to mention that the interest rate is insane (sometimes 25%) if you fail to pay off the balance of the credit card every month.
However with credit cards if you’re able to show some monk level self control and pay off the entire balance every month, then there are some serious gains to be made. Instead of waiting for things to be on sale, literally everything will be on sale because you’ll get money back on every purchase and the best part is you won’t have to pay interest. Which is why I wanted to outline the best cash back cards that will put money back in pocket every time.
1. Discover Cash Back: This card takes the top spot due to the fact that it has a mind boggling 5% cash back on a set of rotating categories, and Discover will match that 5% cash back on the first year meaning that effectively you will be able to gross 10% cash back. Literally the highest percentage on this list. Also there is no annual fee, which is huge in the credit card world.
2. Blue Cash Preferred Card: Unlike the other cards on this list there is a $95 annual fee associated with this one, however this is largely mitigated with the gaudy 6% cash back that is realized with this card. The average person can easily go through $300 in groceries a year (I speak from experience). Essentially netting you $121 from groceries alone in a year. Not to mention that there is a $250 credit bonus after you spend the first $1,000. Also there is a 3% cash back on gas stations and an additional 1% on all other purchases.
3. Chase Freedom: This card takes the second spot due the fact that the bonus is at such a low level. After spending just $500 in your first three months, you can earn an additional $150 in rewards. Also it does offer the 5% that the Discover Cash Back (has the same rotating category exception too), except it does have a $1,500 cap but all other purchases get a 1% cash back, which is nice. The annual fee is also $0 but it does have a 3% foreign transaction fee.
4. HSBC Cash Rewards Mastercard: This card has no frills and offers a flat cash back rewards rate, which is something that I love. This card offers 3% flat rate on all purchases for the first $10,000 spent, which is fantastic. And the the post rate isn’t bad either dipping to 1.5% on all purchases after the initial $10,000 is spent. Also there is no annual fee.
5. Citi Double Cash Card: No frills here again, a straight 1% cash back, which isn’t that great, but there is an additional 1% that gets added on when you pay your credit card, essentially making it 2% cash back on all purchases.
With any of these cards it is incredibly important that you live within your means and pay off the balance each month. Be sure to at least keep a balance to build credit but do no more than that. All of these savings are essentially useless if you’re having to pay 20% in interest every month.