When you think about the cash-back cards available to you, it begs the question of how much you can earn in any given month. If you choose the right cards based on your spending habits, you can add cash-back bonuses even faster than you might realize is possible.
The most important thing to know is that cash-back rewards operate on a percentage basis. For example, if you make a $100 purchase with a Chase Freedom Unlimited card that earns 1.5% cash back, every $100 spent earns you $1.50 in cashback rewards.
Rotating Categories
Let’s say you have a Chase Freedom or Discover It card that earns 5% cash back on rotating categories, as rewards will add up quickly. With these particular cards, quarterly category changes bounce between grocery store purchases, gym memberships, Amazon, and other options.
When using this card for cash-back rewards, you earn $5 cash back for every $100 you spend in one of the currently live categories. There is no question that rotating categories can be one of the smartest ways to maximize every swipe.
Should you have a card that includes a quarterly category like grocery shopping, 5% cash back will add up fast, especially if you visit the grocery store multiple times a week.
Bonus Categories
Alongside rotating categories, some cards, like the Blue Cash Preferred from American Express, offer you even more earning opportunities. With this card, you earn 6% cash back on every grocery store purchase and 3% on every gas station fill-up.
If you’re anything like me, this can quickly add up. As someone who spends roughly $200-$300 per week to feed a family of four, this could equal up to $18 cash-back after every grocery trip, assuming a $300 spend.
Now, let’s say I do this 52 weeks of the year (which I do), which means I’m earning approximately $936 per year in cash-back rewards just on grocery shopping visits. Of course, this card also earns 1% on all other purchases, so I’ll likely charge another $1,000 monthly on miscellaneous expenses, including meals, activities, bills, etc. This means I can earn an additional $10 monthly in rewards for my usual spending habits or another $120 in total.
So, with this AMEX credit card and its bonus categories, I can earn around $1,050 per year in cash-back rewards, assuming I don’t make any more significant charges that would boost this amount.
Use Multiple Cards
Using multiple cards is the best way to earn cash back quickly, without question. This means combining a card like the American Express with the Capital One Quicksilver or Wells Fargo Active Cash will be your best move. If you do, you now have a card that earns bonus cash back at grocery stores and fill-ups and credit cards that earn 1.5% or 2% back on every other purchase, respectively.
So, now my $1,000 in miscellaneous expenses can go on either of these cards (Capital One or Wells Fargo), and I’m earning $15 and $20 monthly in rewards. This means I can earn between $180 and $220 with these other cards annually, alongside the same $936 I earn with American Express.
Things get even more interesting if you have three cards: the AMEX for gas station and grocery, a Discover It card for its multiple 5% categories, and a Wells Fargo Active Cash card for 2% cash back on all other purchases.
Make Use of Shopping Portals
Too few people use online shopping portals alongside their favorite cash-back cards. Capital One customers, in particular, are frequently reminded of the Capital One Shopping portal. With over 30,000 retailers included, you can earn 1.5% cash back on every purchase with your Capital One Quicksilver Card, plus any other bonus percentages available at other retailers like Nordstrom, Amazon, Target, Adidas, Chewy, and more.
Similar portals exist through Chase Bank, frequently highlighting deals at stores like Walmart, Best Buy, Macy’s, and Sephora. Barclays RewardBoost portal also offers discounts that can help you maximize cash-back rewards.
Chase and Capital One, in particular, have an excellent system with these portals. You can apply the cash-back rewards you earn shopping with your card directly to your credit card balance. This is a win-win for consumers who earn money and use it dollar for dollar to pay off an existing purchase.
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