What are rewards credit cards? There are two types of reward credit cards: rewards credit cards for cash back and points/miles earning cards. Cash back credit cards are pretty straight forward. Points/Miles credit cards give you the opportunity to redeem for free airfare and hotels. Usually these points and miles will give you a better value than cash back. However, if you do not travel often then cash back might be the way to go. Since I like to travel most of my credit cards are points/miles credit cards, but I still like using a few cash back credit cards sometimes. Recently, banks such as Chase and AMEX are actively trying to win customers with huge sign up bonuses. In later posts, I will talk about how to take advantage and maximize on these deals and get free stuff.
The most popular and best cashback rewards card right now is Chase Freedom in my opinion. There is no annual fee and it constantly gives 5% back on various spending categories. The current sign up offer now is a free $100 when you spend $500 in 3 months (I signed up when it was $300 free). The current 5% rotating categories are:
This quarter’s rotating categories aren’t as good as previously (gas, supermarkets, amazon.com). However, you can still get 5% back on all Amazon.com purchases. All you have to do is go to Bestbuy and look for these in the PC/Tablet aisle and look for these:
Also, you might be able to find the following gift cards at Kohl’s to get 5% back: Barnes and Noble, Best Buy, BP, Facebook, iTunes, Home Depot, Regal Cinema, Spafinder, Restaurants (Applebees, Chili’s, Macaroni Grill, Olive Garden, Outback Steakhouse, PF Chang’s, Red Lobster, Starbucks, Subway.
There are plenty of opportunities to get 5% cashback on different stores and not just Bestbuy and Kohl’s. These are some of the reasons that Chase Freedom is the best rewards credit card for cash back. Note: I do not earn any commission promoting this card.