Imagine having a credit card that pays you back in cash every time you use it for paying bills! Sounds too good to be true, right? Well, it's not! The best cash back credit cards for paying bills not only make managing finances easier but also reward you with cold, hard cash. Interested in knowing more? Dive in as we navigate through the ins and outs of cash back credit cards and identify the best options available for you.
Best Cash Back Credit Cards For Paying Bills Table of Contents
What are Cash Back Credit Cards?
What are Cash Back Credit Cards?
Cash back credit cards, as the name suggests, offer a percentage of your spending back as cash rewards. These cards are specifically designed to give you monetary incentives when used for day-to-day expenses such as paying bills, shopping, groceries, and more.
Types of Cash Back Credit Cards
- Flat-rate Cash Back: These cards offer a uniform cash back rate (usually around 1% to 2%) on all purchases without any spending caps or categories.
- Category-Based Cash Back: These cards offer higher cash back rates in specific categories such as groceries, gas stations, restaurants, etc. They usually have a base rate of 1% and increased rates of up to 5% or more for specific categories.
- Rotating Categories Cash Back: These cards offer higher cash back rates in specified categories that change every quarter or year. You need to enroll in the new categories each time they change to enjoy the rewards.
Factors to Consider While Choosing a Cash Back Credit Card
Here are some important factors to evaluate while selecting the best cash back credit card for your bill payments:
- Category Matching: Choose a card that offers cash back in the categories where you spend the most.
- Reward Rate: Look for cards that offer the highest reward rates for the categories most relevant to you.
- No Annual Fee: It's essential to find a card with no or low annual fees to truly maximize your cash back rewards.
- Sign-up Bonus: Some cards offer lucrative sign-up bonuses, which can be a great way to jumpstart your cash back earnings.
- Additional Benefits: Consider cards that offer other valuable perks such as travel rewards, purchase protection, or extended warranty.
Best Cash Back Credit Cards for Paying Bills
Here are some of the top cash back credit cards specifically tailored for paying your monthly bills:
- Citi® Double Cash Card: Earn 1% cash back on every purchase and an additional 1% when you pay off your balance. This card is great for those who want a straightforward flat-rate cash back card with no category restrictions.
- Blue Cash Preferred® Card from American Express: Earn 6% cash back on U.S. streaming services and at U.S. supermarkets (up to $6,000 per year), 3% on transit and U.S. gas stations, and 1% on all other purchases. This card is ideal for those with heavy spending on groceries and streaming services.
- Discover it® Cash Back: Earn 5% cash back on rotating categories (such as gas stations, grocery stores, or Amazon.com) up to $1,500 in purchases each quarter, and 1% on all other spending. This card suits those who are willing to track changing categories religiously.
Best Cash Back Credit Cards For Paying Bills Example:
Let's say you spend $200 on groceries, $100 on gas, $100 on streaming services, and $300 on other categories every month. With the Blue Cash Preferred® Card from American Express, you'll earn $144 cash back annually on streaming services, $72 on gas, and $72 on the remaining purchases, amounting to a total of $288 in cash back rewards. You'll also get a $250 statement credit after spending $1,000 in the first three months, effectively offsetting the $95 annual fee in the first year.
Getting the most out of your credit card rewards begins with finding the perfect cash back card for your bill payments. By carefully considering your spending habits and comparing the best cash back credit cards, you can maximize your earnings and enjoy those hard-earned cash rewards. So, don't wait any longer! Share this article with your friends and family, and let Flik Eco help you find the best cash back credit card for paying bills today!
