24 Jul
Top Cash Back: Top 10 Best Top Cash Back
July 24, 2023
Maximizing Your Rewards: 10 Effective Strategies for Saving
Top Cash Back. Cash back” refers to a rewards program in which a small percentage of the amount spent is paid back to the card holder. Many credit card companies run this type of incentive program, which can provide cardholders with a way to earn money back on their purchases.
The phrase “top cash back” usually refers to the highest percentage of cash back that you can earn through these types of programs. The specific percentage will vary between different credit cards and rewards programs, but it can be anywhere from 1% to 5%, or even higher in some cases, depending on the specifics of the program and the types of purchases made.
To find the “top cash back”, you’d typically want to compare different cash back rewards programs. When comparing these programs, you should take into account:
- Percentage of Cash Back: This is the most obvious factor. Some cards offer a flat rate on all purchases, while others offer higher rates on certain categories of purchases, like groceries or gas.
- Bonus Categories: Some cards offer higher cash back rates on certain categories of spending, which can range from groceries and gas to dining and entertainment. If your spending aligns with these categories, these cards can offer great value.
- Sign-up Bonuses: Many cards offer bonuses to new card members who spend a certain amount within the first few months. These bonuses can be a great way to boost your earnings, but they should not be the sole factor in your decision.
- Annual Fee: While some cash back cards do not charge an annual fee, others do. You’ll need to earn enough cash back to offset this fee for the card to be worth it.
- Redemption Options: Check how you can redeem your cash back. Can it be used as a statement credit, or can you get it as a check or gift card? Are there any restrictions or limits on redemption? These factors can affect the actual value of your cash back.
Some of the top cash back cards were the Citi Double Cash Card (2% on all purchases: 1% when you buy, plus 1% as you pay off those purchases), Chase Freedom Flex (5% on up to $1,500 in combined purchases in bonus categories each quarter you activate, 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on all other purchases), and the Discover it Cash Back (5% on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate).
Here are 10 tips that you might find helpful:
- Choose a Card that Matches Your Spending Habits: Cards offer different cash back percentages for different categories of spending. For example, some cards might offer higher percentages for dining out, while others offer more for gas or groceries. By choosing a card that offers the highest rewards for the categories you spend the most in, you can maximize your cash back.
- Utilize Rotating Categories: Some cards offer higher cash back percentages on certain categories that change each quarter. If you have one of these cards, be sure to activate these categories each quarter and plan your spending accordingly.
- Consider Multiple Cards: If you spend a lot in multiple categories, it might be worth considering having multiple cash-back cards. For instance, you might have one card that offers high rewards for groceries and another that offers high rewards for gas.
- Pay Your Balance in Full Each Month: Interest charges on your credit card balance can quickly eat up any cash back you earn. To avoid this, make sure to pay your balance in full each month.
- Don’t Buy Unnecessary Items for Cash Back: It might be tempting to spend more just to earn more cash back, but this isn’t a good strategy. Remember, you’re only getting a percentage of your spending back, so it’s not worth spending money on unnecessary items.
- Understand Redemption Options: Some cards have specific rules about how you can redeem your cash back. Make sure you understand these rules to avoid any surprises. Some cards might require a certain amount of cash back before you can redeem it, or they might only allow you to redeem your cash back for certain things, like statement credits or gift cards.
- Take Advantage of Sign-up Bonuses: Many cash back cards offer sign-up bonuses that give you extra cash back if you spend a certain amount in the first few months. If you were planning on making a large purchase anyway, this could be a good way to earn a substantial amount of cash back.
- Beware of Annual Fees: Some cash back cards have annual fees. If you don’t earn enough cash back to offset these fees, then the card might not be worth it. Make sure to take these fees into account when deciding on a card.
- Report All Income on Credit Card Applications: Your credit limit, which can affect your cash back potential, may be determined by the income you report on your credit card application. Be sure to include all sources of income, including things like alimony, investments, and part-time or freelance work.
- Keep Your Account in Good Standing: Make sure you make all your payments on time and keep your account in good standing. If you miss payments, you could lose your cash back rewards. Also, missing payments could lead to penalty APRs, late fees, and damage to your credit score.
