Simple Cash Back Strategies Can Earn You Hundreds (Or More) Each Year

No matter what cash-back credit card strategy you use, the good news is that you can receive rewards just for shopping. While there is no question you will be able to earn cash-back rewards, the better (and arguably most important) question is how to maximize these rewards so you are earning big dollars every month. 

While it might seem that you need multiple credit cards to maximize your reward amount, this isn’t necessarily the case. The most important thing to do before you start taking out multiple credit cards is to understand your spending habits and see if there are any specific categories in which you spend more. 

Know Your Spending Habits

Knowing your spending habits is the first step in any strategy to earn the most rewards possible. Suppose you shop at the grocery store every weekend and spend hundreds of dollars to feed your family. 

This is precisely why you would look at a credit card that offers rewards of up to 6% on every grocery trip. I’ll use myself as an example here, as someone who spends upward of $1,200 per month on groceries for my family. It’s a crazy amount, but in this regard, I would earn roughly 72 dollars a month in cash-back rewards, or $936 per year, which is again a crazy number just for the grocery shopping I’m already doing. 

The same goes for those who drive a lot for work, where you look at a credit card that earns you 3% on all gas station visits. If you fill up once or twice a week, spending an average of $60 on a gas tank, you could earn around $175 annually in rewards just at gas stations. 

Combining Card Types

Another simple cash-back strategy to help you maximize your rewards is to combine your different card types. One example is to have a flat-rate cash-back credit card that earns between 1.5% and 2% on every purchase. 

Combine this with a credit card that offers you 5% in rotating categories that offer quarterly bonuses on gas stations, groceries, Amazon, Walmart, or other common shopping types, and you can wind up earning over $100 a month, depending on how much you spend monthly. Again, if you’re anything like me, where everything goes on a credit card, earning $100 plus is not only possible but probable. 

Use Shopping Portals

This is one of the most overlooked strategies for earning cash-back rewards, and it’s too simple. Some credit card companies have online shopping portals that offer discounts at frequently shopped stores like Walmart, Best Buy, Target, Chewy, and more. These portals allow you to put all of this cash-back value directly on your credit card. 

Look at Credit Card Promos

In the case of different credit card brands, there are various promos you can take advantage of without doing anything. Some credit card banks will match your cash-back reward total dollar for dollar after the first year, while others will give you additional percentage bonuses on common shopping categories. 

The same can be said for looking beyond the most common cards to less common places. The idea of taking out a Visa or MasterCard for a single grocery or retailer might sound odd. Still, these cards offer better benefits than store-branded cards, offering strong sign-up bonuses of hundreds of dollars if you hit a minimum spend in the first 90 days. 

Time Your Big Purchases

If you know you have a big purchase coming, like furniture for a new home or a vacation requiring a whole new wardrobe and travel supplies, time your purchases with benefits. In fact, you might want to apply for a credit card with a 0% APR for 12-18 months, which allows you to earn hundreds in rewards with these big purchases while not stressing you out over interest if you gradually pay it off. 

Supercharge Your Rewards

Unfortunately, this will mostly apply to those with big savings or accounts, but some banks like to give you a boost in cash-back rewards for spending. Some banks will offer you a credit card with 2% cash-back on all purchases, and this number can be boosted to 2.6% if you have a minimum balance in a savings account. 

While some of these cards might require annual fees, if you spend properly, the annual fee more than pays for itself in the extra reward total you earn annually.