This Is How You Find the Best Cash-Back Card for EVERYTHING

When it comes to the best cash-back credit cards available today, there is no shortage of options available. You might even say there are too many options from banks, all throwing different benefits at you in the hopes that you’ll sign up and primarily use their credit card. 

This is precisely what one Redditor points out in their post on r/CreditCards as they try to understand if there is one cash-back card that is the best for “EVERYTHING.” The cash-back card is somewhat subjective in many ways, but there is one card out there today that many people might consider the best. 

Interestingly, this Reddit post makes it abundantly clear that everyone enjoys credit card benefits differently, which is okay. 

What Does Cash-Back Mean? 

If you’re thinking about a cash-back credit card for yourself, there are generally four types of cards you can choose from. 

Flat-Rate

Should you consider a flat-rate credit card, you’re looking at a card like Capital One Quicksilver, which offers a solid 1.5% cash back on every purchase. There are no bonus categories or additional perks for grocery stores, gas stations, or anything else, as it’s just one flat rate for every purchase you make, forever. 

Rotating Categories

If you are considering a cash-back card with rotating category bonuses, consider looking at something like the Discover it card or the Chase Freedom Flex card. Both cards offer rotating bonus categories every quarter, and you get 5% cash back on every purchase in this category. 

These categories often include drugstores, grocery stores, home improvement retailers, Amazon, etc. If you make a purchase not currently selected as a rotating category bonus, you only get 1% cash back, so there are tradeoffs to this card type. 

Fixed Bonus

One of the increasingly popular card types might be the American Express Blue Preferred card, which offers a “fixed bonus.” This card provides a flat rate for most purchases at 1% cash-back. However, this card also has fixed categories applicable all year, and you receive increased cash-back percentages. In the case of the American Express card, every grocery store purchase earns you 6% cash-back, up to $6,000 per year, which is hard to ignore if you spend a lot of money on groceries annually. 

Choice Cards

While not as common as the other card type options listed here, a cardholder choice card lets you choose the category where you receive more monthly cash-back rewards. A good example is the popular Bank of America Customer Cash Rewards card, where you can select a category that earns you 3% cash back, with another 2% back on grocery stores and 1% cash back on everything else. 

Why Should You Use A Cash Back Card

Before you can determine which cash-back credit card is the “best,” you should know precisely why you want to use this type of card. For most people, it’s because you are earning “free” money using a cash-back credit card, which can be substantial for anyone who spends thousands per month on credit cards. 

Let’s take the example of a family that spends between $3,000 and $4,000 monthly on credit cards between groceries, gas, bills, meals, kids’ activities, utilities, and everything else that isn’t a mortgage or car payment. 

For the sake of argument, let’s say the Capital One Quicksilver card is their primary credit card. This means that, on average, they earn between $45 and $60 per month at 1.5% cash back. This breaks down to earning between $540 and $720 annually, essentially money they can accrue yearly and then use to buy their kids holiday gifts. 

Of course, this number could be higher or lower depending on how much you spend on a credit card. If used correctly, you can earn hundreds, if not over a thousand dollars per year, using a cash-back credit card. 

Looking At Other Card Benefits

The last big consideration you must make when choosing the “best” cash-back credit card is the other benefits you receive with a card beyond just cash back. If you are anything like me, I like to use a credit card that offers both purchase protection and an extended warranty. 

This means I purchase my iPhone on a cash-back credit card that takes a one-year warranty from Apple and doubles it. Having these additional perks is increasingly popular, and it’s how credit card companies are learning to differentiate themselves since they all offer roughly similar cash-back percentages. 

There is also the consideration around a welcome offer for new members, which could result in a few hundred dollars in cash-back rewards if you hit a minimum spend in the first 90 days of having a card. This is also “free” cash for using the card, so it’s something to consider. 

So What Is The Best Cash-Back Credit Card? 

As an important reminder, the best cash-back credit card is a highly subjective discussion, as many great cards exist. You’ll quickly discover this as you read through the comments in this Reddit thread, as there is no universal agreement as to which card is the best. 

Ultimately, the card that pops up the most in the Reddit thread and is also labeled the “best” cash back card by both Nerdwallet and Credit Karma is the Wells Fargo Active Cash card. Offering unlimited 2% rewards on every purchase, this card can earn you a ton of money depending on how much you spend without worrying about quarterly categories or bonuses. 

Along with the 2% cash back rewards, you also can get a $200 cash rewards bonus if you spend just $500 in the first 3 months. Plus, you have a 0% intro APR for 12 months, which includes balance transfers, so there are definite incentives with the Wells Fargo Active Cash card. 

Other perks add to the card’s benefits, like cellular phone protection, which has a small $25 deductible and covers any damage or theft up to $600. You also get an auto rental collision damage waiver, travel and emergency assistance services worldwide, and roadside dispatch. 

You can also take advantage of “My Wells Fargo Deals,” which will offer you “personalized deals from various merchants.” This is yet another way to stack a discount on top of your 2% cash-back bonus so you can save and earn money in a single transaction. 

What’s The Catch

In the case of the Wells Fargo Active Cash credit card, there aren’t any major red flags. The 2% cash-back rewards are unlimited, so you don’t have any earning caps. You can redeem your cash-back balance directly to your account balance checking account or even place your reward total toward a Wells Fargo mortgage. 

Better yet, if you want some quick cash, you can redeem cash-back rewards at an ATM or in gift card amounts in $25 increments. The Wells Fargo Active Cash credit card has plenty of perks that make it an “easy” albeit hard choice as the “best” cash-back credit card you sign up for today. 

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