A guide to credit card cash back categories
Quick insights
- Understanding specific cash back categories can help maximize your rewards on everyday purchases.
- Certain credit cards offer up to 5% cash back in rotating or fixed categories, including popular retail and online stores.
- Knowing which stores and services offer cash back can help you plan your spending to maximize returns.
In the world of credit cards, not all spending categories are created equal. Knowing where and how to use your credit card can turn shopping into a rewarding experience. With the right credit card, your regular expenses can come with a bonus—cash back!
Which Chase credit cards offer cash back rewards?
Many Chase credit cards offer the potential to earn rewards on your purchases, but the Chase Freedom® brand of cards is perhaps best suited for cash back rewards specifically.
Chase Freedom Flex℠ offers 5% cash back on rotating quarterly categories, 3% on dining including takeout and drug stores and 1% on all other purchases, while the Chase Freedom Unlimited® offers a flat 1.5% back on all purchases and higher percentages in specific categories. Both cards occasionally include special cash back offers for additional categories, which can be activated through the Chase app or website.
Which stores have the highest cash back?
Major retailers often get featured in credit card bonus categories, offering higher cash back rates of up to 5% or more. Online marketplaces also frequently offer high cash back rates through various credit card partnerships.
Chase Freedom Flex 5% cash back categories
Cards like the Chase Freedom Flex offer 5% cash back on categories that change each quarter, from grocery stores to gas stations and online shopping. Let’s take a look at some examples of what a cash back category may be:
- Quarter 1: For the first three months of the year, Chase Freedom Flex might offer an elevated 5% cash back rate on gas stations and streaming services. This could cover all standalone gas stations, perhaps EV charging stations and subscriptions to streaming services.
- Quarter 2: For the next three months of the year, Chase Freedom Flex might offer a 5% cash back rate on grocery and department stores. This could potentially include traditional grocery stores, members-only grocery stores, larger retailers and department stores.
- Quarter 3: The next three months might showcase 5% cash back at home improvement stores and fitness centers.
- Quarter 4: During the final three months of the year, Chase Freedom Flex might offer 5% cash back on travel and dining purchases. This could include a combination of hotel chains, airlines, cruise lines and restaurants.
The bottom line
Choosing the right credit card for specific cash back categories can enhance your earnings from everyday purchases. By aligning your card choices with your spending habits and taking advantage of special category bonuses, you can help maximize the benefits received from your credit cards. Whether filling up the tank, updating your wardrobe or grabbing a bite, there's always an opportunity to earn cash back.
