If you’re using a cash-back credit card, there is a better-than-good chance that you want to maximize your rewards. As you’re essentially earning free money by spending on things you want or need to buy, it’s hard to ignore how easily you can maximize cash-back earnings. 

Ultimately, it’s essential to know that you must still watch your spending even as you try to earn hundreds of dollars a year in cash-back rewards. It’s also crucial to ensure you’re paying off your purchases quickly. Otherwise, accrued interest will outweigh any cash-back rewards you might receive. 

Make Use of Rotating Categories

One of the easiest and simplest ways to earn hundreds of dollars a year with a cash-back credit card is to take advantage of rotating rewards. The two top cards in this space are the Chase Freedom card and the Discover it, both offering quarterly rotating categories. 

These categories include grocery stores, gas stations, gym memberships, Amazon, and other choices. If you make full use of these categories, as they change every three months, there is no reason why you can’t quickly rack up some easy cash-back rewards. 

Use Cash Back Sites

If you’re unfamiliar with websites like Rakuten or Ibotta, you must get familiar with them as soon as possible. The same goes for Capital One Shopping, as these portals will help you save hundreds of dollars annually by giving you extra cashback savings. 

Last year, just from scanning receipts from my family’s weekly Target shopping trips with Ibotta, I earned back well over $100, and this was me using the app intermittently throughout the year. Someone who dives deep into this online shopping space can learn how to save hundreds yearly. 

The highlight here is the Capital One shopping portal, which offers names like Nordstrom, Kohl’s, and 30,000 total retailers to help you save hundreds every year. The discounts and savings found on this site will vary, but it’s all money you would otherwise not have if you didn’t take the extra 30 seconds to use this site. 

Find Bonus Categories

Suppose you grocery shop at least once a week, often spending hundreds of dollars to feed a family. I know this person well because it’s me. In these cases, taking advantage of something like the Blue Cash Everyday Card from American Express, which offers 6% cash back at supermarkets around the United States, can be a huge win. 

Knowing that you can earn up to $6,000 per year in cash-back rewards will help you with saving. Add in that this same card can earn you 3% cash back on every gas station fill-up, and you can quickly see how bonus categories from certain credit cards will become a mainstay of refilling your wallet. 

Carry Multiple Cards

Of course, the best way to save hundreds of dollars yearly is to carry multiple credit cards. One of the smartest strategies is to have a card like the Blue Cash card from American Express for use with gas stations and grocery trips. However, you’d also want a card like the Chase Freedom Unlimited, which offers 1.5% cash back on every purchase. 

If you’re a Wells Fargo banking customer, grab the Active Cash card and get even more with 2% cash back on every purchase. With another cash-back card offering specific or rotating categories, you can sit back and watch the reward totals add up. This money can be used toward your savings or to pay down your balance. 

Save Your Rewards

Building on the idea above, instead of just letting your cash-back rewards sit and continue to accrue, you can and likely should cash this amount and start putting it toward an emergency savings fund. Alternatively, you can put this money toward a major goal in your life, like paying off a high-interest loan. 

If you can accrue over $1,000 per year in credit card rewards, you might want to consider dropping it into a high-yield savings account and let it be the start of additional savings. There is no question that this money can be best used outside of paying off your credit card balance. 

Monitor Your Spending

No tip around saving hundreds each year with a cash-back credit card is as valuable as a reminder to watch what you spend. Monitoring your purchase habits is the best way to ensure you are not overspending. If you’re careful, you’ll potentially save hundreds per year because you are no longer making unnecessary purchases.

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