Why Nearly Every Purchase Should Be on a Credit Card
Credit cards offer convenience, security, help build credit, simplify budgeting, and provide rewards. Importantly, you can use them without going into debt or paying interest.
Top Reward Credit Cards and Their Benefits
- Blue Cash Preferred® Card from American Express: Earns 6% cash back on up to $6,000 annually at U.S. supermarkets, then 1% thereafter (terms apply). It also provides 6% cash back on select U.S. streaming subscriptions.
- Discover it® Cash Back: Offers 5% cash back on up to $1,500 per quarter in categories you activate, and 1% on other purchases. In 2024, restaurants were a 5% category in the first quarter. In 2023, gas stations were a 5% bonus category for one quarter.
- Chase Freedom Flex®: Provides 3% cash back at restaurants year-round. Additionally, for three months, it offers 5% cash back on up to $1,500 in spending on activated quarterly categories, and 1% on other purchases. In 2023, gas and EV stations were a 5% category for a quarter and Amazon.com was a bonus category for three months.
- Citi Double Cash® Card: Earns 2% cash back on all purchases—1% when you buy and 1% when you pay off the balance.
Summary of 2023 and 2024 Bonus Categories
- Restaurants were a 5% bonus category in early 2024 for Discover it® Cash Back.
- Gas stations and EV charging stations appeared as 5% bonus categories for both Chase and Discover cards in 2023.
- Amazon.com was a bonus category for three months in 2023 for both Chase and Discover cards.
"Credit cards are convenient and secure, help build credit, make budgeting easier, and earn rewards. And no, you don't have to go into debt or pay interest."
The flexibility and rewards of credit cards make them an optimal choice for most purchases.
Author's summary: Using reward credit cards strategically can maximize cashback earnings without incurring debt, making them a smart tool for everyday spending and credit building.