How Cash Back Cards Work
Cash back credit cards return a percentage of your spending as a rebate. Most cards offer 1-2% on general purchases and 3-5% on bonus categories like groceries, gas, or dining. Premium cards may charge annual fees but offer higher rates that can more than offset the cost for heavy spenders.
Maximizing Your Cash Back
Use bonus categories strategically — pair cards to cover groceries, gas, dining, and everything else at the highest rates. Pay your balance in full monthly to avoid interest charges that would erase your cash back gains. Some cards offer rotating 5% categories each quarter.