Ranked: My 3 Favorite Rewards Cards

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.

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!

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.

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?