Ranked: My 3 Favorite Rewards Cards
KEY POINTS
- One Amex card gives me a stunningly high cash back rate on groceries.
- A certain Bank of America card always fits my spending.
- Chase's Prime Visa is a standout for Amazon shopping.
Credit cards are quite popular among Americans -- according to research from The Motley Fool Ascent, 80% of us have at least one. Using rewards cards in particular can improve your bottom line, if you're careful to avoid debt by only spending as much as you can afford to pay off every month.
I use credit cards for the vast majority of my spending -- other than a few recurring bills, I put every expense I have on a credit card. So here's a closer look at my three favorite cash rewards cards.
1. Amex Blue Cash Preferred
I spend a lot of money at the grocery store -- which is probably true for many people. Groceries are the third-largest spending category in my monthly budget. Luckily, I've got the Blue Cash Preferred® Card from American Express in my wallet. This card gives me 6% cash back at U.S. supermarkets (up to $6,000 per year) and select U.S. streaming subscriptions (terms apply, see rates and fees). If I go over that $6,000 mark, I earn 1% cash back after that.
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Not as much of a foodie as I am? That's OK! The Blue Cash Preferred® Card from American Express is also great for another big everyday expense: It earns 3% cash back on gas. I don't drive much since I work from home, but I use this card for fill-ups when I need them. Also, note that after the first year, you'll pay an annual fee for this card ($0 intro annual fee for the first year, then $95. See rates and fees). But those high bonus rates make it pretty easy to cover that fee -- last year, I earned more than $400 back with this card!
On American Express' Secure Website.
Terms apply
= Best
= Excellent
= Good
= Fair
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= Best
= Excellent
= Good
= Fair
= Poor
On American Express' Secure Website.
Terms apply
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 12 months
Balance Transfers: 0%, 12 months
APR
19.24%-29.99% Variable
Rewards 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions. 3% Cash Back at U.S. gas stations. 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
1%-6% Cash Back
Annual Fee
$0 intro annual fee for the first year, then $95.
Welcome Offer Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
$250
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This card offers market-leading cash back at U.S. supermarkets. The welcome bonus and intro APR offer sweeten the deal. Terms apply. If you spend a lot on groceries (excluding wholesale clubs and superstores like Costco and Walmart), this card is worth considering. Read Full Review
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- Big welcome offer
- U.S. supermarkets rewards
- U.S. gas stations rewards
- Streaming subscription rewards
- Travel and purchase protections
- Annual fee
- Foreign transaction fee
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- Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
- $0 intro annual fee for the first year, then $95.
- Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
- Low Intro APR: 0% on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.24% - 29.99%.
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
- 6% Cash Back on select U.S. streaming subscriptions.
- 3% Cash Back at U.S. gas stations.
- 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
- 1% Cash Back on other purchases.
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
- $84 Disney Bundle Credit: With your enrolled Blue Cash Preferred Card, spend $9.99 or more each month on an auto-renewing Disney Bundle subscription, to receive a monthly statement credit of $7. Valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.
- Terms Apply.
2. Bank of America Customized Cash Rewards
I'm a long-time Bank of America customer, and its credit card offerings are perhaps my favorite feature of this big bank. I've had the Bank of America® Customized Cash Rewards credit card for about six years, and I love that "customized" in its name -- it means this card always fits my life.
With this card, you get your choice of six 3% cash back categories. So far, I've made heavy use of three of them over the years: gas, online shopping, and home improvement and furnishings. Plus, you can earn 2% cash back at grocery stores and wholesale clubs, so this Visa card could also be a great fit for Costco shopping.
On Bank of America's Secure Website.
= Best
= Excellent
= Good
= Fair
= Poor
= Best
= Excellent
= Good
= Fair
= Poor
On Bank of America's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 19.24% - 29.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Regular APR
19.24% - 29.24% (Variable)
Rewards 3% cash back in the category of your choice, 2% at at grocery stores and wholesale clubs for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases, 1% on all other purchases.
1% - 3% cash back
Annual Fee
$0
Welcome Offer $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
$200 cash back
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This card's wide range of extra cash back options speaks for itself, with a choice of six bonus categories you can change monthly for 3% earnings in the category of your choice. And you can earn 2% back automatically at grocery stores and wholesale clubs. No annual fee and a nice welcome bonus also make this one a winner. Plus, if you're a Bank of America Preferred Rewards member, this card will be even more valuable for you. Read Full Review
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- Competitive welcome bonus
- Bonus cash back in a category of your choice
- No annual fee
- Great 0% intro & transfer APR offer
- Relationship rewards bonus
- Foreign transaction fee
- Limit on bonus cash back
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- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
- Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
- Choose 3% cash back on gas and EV charging station, online shopping/cable/internet/phone plan/streaming, dining, travel, drug store/pharmacy or home improvement/furnishings purchases.
- If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
- No annual fee and cash rewards don’t expire as long as your account remains open.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 19.24% - 29.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
- Contactless Cards - The security of a chip card, with the convenience of a tap.
- This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
3. Prime Visa
I placed my first Amazon order more than 20 years ago, and since then, I've relied on the online superstore for more and more of my everyday needs. Since I'm a Prime member, I qualified to open the Prime Visa. There's no annual fee for this Chase card (except the cost of your Prime membership -- $14.99 a month or $139 a year paid upfront), and you earn 5% cash rewards on Amazon, AmazonFresh, and Whole Foods, and Chase Travel purchases with an eligible Prime membership.
I don't have a Whole Foods in my area, but believe me when I say I lean hard on this card for Amazon buys. Since you can use your cash back the day after earning it (unlike many rewards credit cards, which make you wait until the end of the statement period to cash in), I've basically gotten an instant discount of at least a few dollars on every one of the 15 Amazon housewares orders I've placed since closing on my mortgage a few weeks ago.
Thanks to these rewards credit cards, I earn at least 3% back on a big chunk of my regular spending. And I only pay an annual fee for one of these cards. I'll note that these also don't represent my entire credit card strategy -- I have a few more, including two that earn Chase Ultimate Rewards points that I turn into lower-cost travel. But in terms of earning cash rewards on my spending, these three are my big winners. Might one (or more) of them work for you, too?
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Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
For rates and fees for the Blue Cash Preferred® Card from American Express, click here
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