Saving an extra penny or two for every dollar you spend may not sound like much. However, serious bargain hunters understand that funneling your entire monthly household purchasing through a single cash back credit card can earn you hundreds of dollars every year. If we assume that you spend about $1,000 on monthly bills and other incidentals, you'll get some of the biggest rebates from these three credit cards:
- NASA Federal Credit Union Platinum with Cash Rewards. A credit union that serves NASA employees offers an unusual cash back credit card with a rebate that grows the more you spend. Your annual cash back rebate starts at 1 percent on all purchases, but it actually hops to 1.25 percent after you reach $1,000 in purchases. Spend $2,000 on the card, and your rebate grows to 2 percent. (That's over $222 in rebates on your $1,000 monthly budget.) A $18 donation to a non-profit organization can qualify you for credit union membership, enabling you to apply for this generous everyday reward.
- Capital One Cash. This high-profile credit card offers an easy-to-track, 1 percent rebate on all your purchases. Make your payments on time every month and you'll qualify for an annual 50 percent bonus on your rebate. Therefore, your $120 cash rebate turns into $180.
- Citi Dividend Platinum Select Visa Card. Citi recently added a cash back rewards card with a series of rotating categories that mimics those used by Discover and Chase Freedom. However, this is the only card of the three that specifically includes utility bills as a featured category. Assuming half your budget qualifies for the promotion, you could cash in $180 each year with this card, on top of the one-time $200 signup bonus.
Choosing the best rewards card involves understanding your spending patterns. If you spend more on gas and groceries than on your monthly bills, a gas rebate card or a grocery rewards credit card could save you even more money. Using a rewards credit card to pay your monthly cable, electricity, and water bill can rack up cash bonuses that you can use for vacations, holiday spending, or personal savings.
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- I am looking for a credit card that offers cash rewards, with no annual fee. I filed for bankruptcy in 2004, but my credit scores are in the 680s.
- I want a credit card that gives cash back or rewards for medical expenses, groceries and gasoline
- I'm looking for a credit card for everyday purchases, with cash back options that are easy to understand and manage.
