How to maximize flat-rate cash back credit cards

Flat-rate cash back credit cards have their advantages, particularly for those who prefer simplicity over tracking categories or earning caps. With the right flat-rate card, you can earn 2 percent cash back (or more) on all purchases with no annual fee. Plus, without bonus categories to worry about, you can use your rewards card without any confusion.

However, there are ways to enhance rewards with a flat-rate cash back card. By being strategic with your spending and taking extra steps, you can maximize your earnings.

Here are six tips to maximize rewards with a flat-rate cash back credit card from major issuers:

1. Use your card to pay bills

Earn more cash back by using your flat-rate cash back credit card to pay for recurring expenses like bills. While not all bills may earn rewards, many do, so look for opportunities to charge new bills to your credit card.

Examples of bills you may be able to pay with a credit card include:

• Insurance premiums
• Utility bills
• Mortgage payments
• Rent
• Subscriptions, like streaming services
• Daycare expenses

Just be mindful of your credit utilization ratio, which compares how much you owe to your available credit. Keeping this ratio under 30 percent is ideal for maintaining a healthy credit score. Pay off your balances promptly to keep your ratio low.

2. Never carry debt on your account

Ensure you’re maximizing the value of your cash back rewards by monitoring your balance and making timely monthly payments. It’s challenging to benefit from cash back rewards if you’re accumulating debt on your account. The high interest rates credit cards charge can end up costing you more than you earn in cash back rewards. To maximize your cash back rewards, it’s important to avoid carrying a balance and stay out of debt. Only charge purchases you can afford to pay off, track your spending, and pay your balance in full and on time each month.

Additionally, you can double up on cash back rewards by using a cash back app when shopping online with your credit card. Apps like Rakuten, Dosh, Cashback Monitor, and Ibotta can help you earn additional rewards on top of what your credit card offers.

Another way to earn more cash back is by using card issuer shopping portals. Many credit card companies have their own portals where you can earn extra rewards on purchases. For example, Chase, Barclays, and Capital One all offer shopping portals for cardholders to earn additional cash back.

You can also take advantage of issuer-specific offers from American Express, Chase, and Capital One to earn more cash back with select retailers. These offers can be accessed through your card issuer’s website and can provide additional rewards on top of what you already earn with your credit card.

Finally, consider pairing your flat-rate cash back card with a bonus category card to maximize your rewards. By choosing a card that offers boosted rewards in categories where you spend the most, or a rotating bonus category card, you can earn a higher rate of cash back on your spending. This strategy may require a bit more effort, but it can help you earn more rewards in the long run. Flat-rate cash back credit cards are a popular choice for many consumers, offering a higher rewards rate on all purchases and bills. One such card that stands out is the one that doesn’t charge an annual fee and allows you to earn 5 percent cash back on activated bonus category purchases each quarter, up to $1,500 in purchases, and then 1 percent. The bonus categories are announced quarterly and have historically included popular categories like Amazon.com, grocery stores, gas stations, and Walmart.

If you frequently spend on dining and entertainment, you may want to consider the Capital One SavorOne Cash Rewards Credit Card, which offers 10 percent cash back on Uber Eats (until Nov. 14, 2024) and 3 percent on all other dining purchases, including select streaming services. Another great option for restaurant lovers is the Citi Custom Cash® Card, providing 5 percent cash back on your top eligible spending category each billing cycle, including restaurants.

Ultimately, the choice of the best cash back credit card depends on your spending habits and preferences. By comparing different options and potentially pairing a flat-rate card with one offering bonus categories, you can maximize the cash back you earn and simplify your financial life. Remember to explore additional opportunities to earn cash back, such as utilizing shopping portals and taking advantage of card issuer offers.

In conclusion, flat-rate cash back credit cards offer a straightforward way to earn rewards on your everyday purchases. By utilizing various strategies, you can potentially earn significant cash back each year. It’s essential to explore all the options available and find the right combination of cards to optimize your rewards.