Spend and earn. That’s the name of the game when you’re leveraging the purchasing power of a credit card that earns rewards. If you’re going to spend the money anyway, or you have big-ticket items to buy, racking up reward points that you can cash in for some goodies creates a win-win situation for you.
Check out these four credit cards that earn the best rewards (like cash, baby).
#1 Blue Cash Preferred® Card from American Express
The Blue Cash Preferred Card from American Express is a great option for everyday spending. If you’re the type that uses your credit card for EVERYTHING and then pays off the balance at the end of the month, then this rewards card is right up your alley.
The biggest win with this card is that it offers the highest reward rate in the U.S.—offering 6% back on your purchases, maxing out at $6,000 per year. And, it doesn’t end there, folks.
You can earn 3% back on gas purchases and department store purchases at an unlimited amount AND this is in addition to the 6%, $6,000 cap.
And just when you think the deal couldn’t get any sweeter, AMEX ups the anty, giving you a $150 sign-on bonus if you spend $1,000 in the first three months you have the card.
The good comes with a little bad news, however, because the card does have an annual fee that is a bit on the steep side at $75 per year. As long as you spend $1,600 per year (considering the 6% cashback reward) then it’s a wash—making the annual fee a moot point.
Additionally, it is AMEX, which is not accepted everywhere. If you plan to use it abroad, the 2.7% foreign-transaction fee also receives a two-thumbs down rating.