What Is Your Favorite Cash Back Credit Card?

Hi there – Nick with Team Clark here.

I handle our credit card coverage for Clark.com, and I’d like to start doing a periodic check with our readers, listeners and community members to see how they’re feeling about their credit cards.

Today I’m wondering: What is your favorite cash back credit card in your wallet right now?

As you all probably know, Clark is a big fan of 2% cash back credit cards. He often suggests the Citi Double Cash Card to listeners who are looking for a solid “everyday” rewards card with no annual fee.

Personally, I’ve been enjoying using the Fidelity Rewards Visa Signature Credit Card for many of my recent purchases. With its automated redemption for Fidelity investment accounts, this card has allowed me to passively add those 2% cash back rewards to my Roth IRA contributions. I use that to help me work toward maxing out my contribution each year!

I also like using the PayPal Cashback Mastercard. It offers 2% back on all purchases, and 3% back on purchased made via PayPal. So I’m able to get 3% back on many of my online purchases with this card by using PayPal at the checkout!

But those three aren’t the only good no-annual-fee cash back credit cards out there!

I recently updated my list of Best Cash Back Credit Cards with No Annual Fee.

I’m looking for feedback on the cards I have on the list, cards I may have missed and any other thoughts on the cash back credit card game.

Thanks,
Nick

I prefer Bank of America credit cards because of their Preferred Rewards program. I keep a little more than $100,000 in a Roth IRA at Merrill Edge to qualify for their Preferred Rewards Platinum honors program which allows me to get a 75% bonus on all cashback rewards cards. Jonathan Ping in his My Money Blog explains this very well here: https://www.mymoneyblog.com/merrill-edge-brokerage-bonus-preferred-rewards.html

In this article, he writes: Credit card rewards. With the Preferred Rewards boost, you can get up to 2.6% cash back on all your purchases with the Bank of America Unlimited Cash Rewards card, or 2.6% towards travel and no foreign transaction fees with the [Bank of America Travel Rewards Card]. You can also get 5.2% cash back on the first $2,500 in combined grocery/wholesale club/gas purchases each quarter with the [Bank of America Customized Cash Rewards Card]

My two cash back favorites are AmEx and the Citi Costco credit card.

I really like the AmEx Blue Cash Every Day Credit Card!

-No annual fee (a Clark staple)
-3% cash back on groceries
-3% on online purchases
-3% on gas
-1% on everything else

I also have the AmEx Blue Cash Preferred. The first year is free. It does have a $95 annual fee after that, but if you spend $200 a month in groceries, it pays for the $95!

-6% cash back on groceries
-6% on select streaming
-3% on transit (taxis, rideshare, parking, tolls, trains, buses, etc)
-3% on gas
-1% on everything else

The Citi Costco is pretty great as well (another Clark staple)! The 4-1% cash back is wonderful, as it covers a wide array of stuff.

-4% on Costco Gas and selected gas
-3% on restaurants (my wife and I have taken advantage of this!) and Costco Travel, I believe
-2% on all Costco and Costco.com purchases
-1% on everything else

I only have cash back credit cards because I don’t want to deal with points, converting them, and worrying if the expire.

#CashbackCreditCards

I’m not sure why anyone would settle for 2% cash back when Alliant pays 2.5%.

I have several cashback cards which I use according to which one is best for a particular purchase. I have labels on each card in my wallet to easily pull out the best one when making the purchase.

Amex Blue Cash Preferred used for 6% on groceries and streaming (easily covers the $95 annual fee).

Chase Amazon Visa used for 5% on all Amazon purchases. Pretty much only used for Amazon.

Chase Freedom Flex used for 5% on quarterly rotating categories only when better than the other cards

Citi DoubleCash only have this card for the Virtual Card feature which I use periodically

Citi CostCo Visa used for 4% off on gas

Fidelity Rewards Visa Since I’m a Fidelity Wealth Management client, I get 3% rebate on this card for everything with no limit. Therefore, I use this card for everything except when the cards above are better. If one of the above cards gives 3% or less for a category, I just use this card instead.

Using these cards and strategy, I’ve received well north of $2000 in rebates in the last 12 months.

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Costco for gas
Amazon Prime Visa for Amazon
AmEx Blue Cash for groceries. but I may not keep that.
Paypal Mastercard for everything else.

I have 2 great cash back cards: 1. Fidelity Visa = 2% 2. Navy Federal Credit Union 2%. They also have the better option to use e-gift cards.

Been a Venture X user for about a year and a half now. No complaints. Wish the lounges were nicer in the U.S. but free is free.

I have the Fidelity 2% cash back card. When I first got it I only had a rollover IRA with Fidelity that had pre-tax money in it so I designated that for the 2% cash back. But I think that means I’ll have to pay tax on it when it’s withdrawn since it’s comingled with the rollover pre-tax money. I didn’t see anything separating them and have since rolled that IRA back into my current employer’s 401k.

But I opened a regular brokerage account at Fidelity and am sending the 2% cash back to that account.

It would be nice to know if it was a mistake to designate that rollover IRA as the account to received the 2% cash back.

I think the credit card rewards that went into the IRA count as contributions to the IRA. So you have to make sure you are/were eligible to make those contributions within the relevant limits.

Thanks Rick. I was definitely under the contribution limit fortunately but I don’t know if the contributions were treated as pre-tax or post-tax.

I think this would be the same as if you took money out of your checking account and deposited it to the IRA. You already paid tax on that money, so it would be a post-tax contribution. But I’m not a tax advisor, so you may want to consult one. Or, I’m sure Fidelity will tell you how the deposits (contributions) were characterized.

These are our goto cards, too. We do keep a, seldom used, BOA Visa for the odd time we run into a situation where Amex isn’t honored. Those are becoming a lot less common these days.

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