How to Choose the Best Cash Back Credit Card
As you create your budget for a free theme park vacation, you may find that some expenses will require cash. Some options to earn cash include shopping portal rewards, bank bonuses, and other rewards. Another way to earn cash for your trip is with a cash back credit card, but you’ll need to know how to choose the best cash back credit card. This article will help you understand the basics of cash back credit cards and how to pick the right one for your free theme park vacation plan.
Cash back credit cards reward cardholders for their spending by awarding a certain percentage of cash back on each purchase made with the card. Some cards earn the same fixed percentage on all purchases, while others offer different rates depending on the spending category. For example, the American Express Blue Cash Preferred® Card earns 6% cash back on groceries and streaming, 3% on transit and gas, and 1% on other purchases, while the Wells Fargo Active Cash® Card earns 2% on all eligible purchases. Some cards like the Chase Freedom Flex℠ offer increased earning rates on rotating quarterly spending categories.
Even though these are cash back credit cards, some cards earn cash in the form of points or another currency name. Each program has its own terms, but redemption options often include a statement credit, direct deposit to a bank account, or a check.
Some credit cards allow the pooling of rewards with those earned from other cards in the program. For instance, the Chase Freedom Unlimited® is considered a cash back card and earns rewards as Ultimate Rewards points. You could cash out your points or, if you have another card that earns Ultimate Rewards, you could combine your points. Since some flexible rewards credit cards offer benefits like the ability to transfer points to travel partners like airline and hotel rewards programs, it may make more financial sense to move your points to another card instead of redeeming them for cash.
Before applying for a cash back credit card, there are several factors to consider.
- Think about your spending habits and why you want the card. It may seem simpler to get a card that earns 2% cash back on all purchases. However, if you plan to use the card mostly on groceries and gas, you would earn more cash back with a card that offers an increased rate for these spending categories.
- Compare several cards to determine which one will provide the most earnings for your spending. Research whether each card offers a welcome bonus, if there is a minimum spending requirement to earn the bonus, redemption options, and if the card imposes an annual fee. You can use the form included in the How to Plan a Free Theme Park Vacation Companion Workbook to help you.
- Read the terms and make sure you understand them. Make certain you know the value of the rewards you’ll be earning. Many cash back rewards can be redeemed for a penny each, but not all. Also, some cards impose limits on quarterly or yearly earnings. If you regularly track your spending, you should be able to estimate your potential earnings from the card and include that amount in your vacation plan.
In summary, cash back credit cards can be a great way to earn cash rewards on everyday purchases and help you save for your vacation. No matter what type of spender you are, there’s a cash back credit card for you. By understanding the basics of how these cards work and choosing the best cash back credit card that suits your spending, you can maximize your rewards and save the cash you’ll need for your theme park vacation.
Here are some popular cash back credit card options to consider. These are typical offers. Offers vary. Check the terms before applying for a new card.
Blue Cash Everyday® Card from American Express
🏆 Why It’s Good: Earns 3% cash back on grocery spending, online retail, and gas stations.
🎁 Typical Welcome Bonus: $200 after $2,000 spent in the first 6 months
💳 Annual Fee: $0
🧡 Best For: People who spend regularly on groceries, shop online, and drive often — and want solid cash back without an annual fee.
Blue Cash Preferred® Card from American Express
🏆 Why It’s Good: Earns 6% cash back on grocery spending and streaming, and 3% on transit. Includes $84 Disney Bundle Credit.
🎁 Typical Welcome Bonus: $250 after $3,000 spent in the first 6 months
💳 Annual Fee: $95
🧡 Best For: People who spend more than $1,583 annually on groceries and streaming.
Bank of America® Premium Rewards® Credit Card
🏆 Why It’s Good: Earns 2X points on travel and dining purchases, and 1.5X on other purchases. Bank of America Preferred Rewards® members earn 25%-75% more points on every purchase. Includes $100 Airline Incidental Statement Credit and $100 Global Entry/TSA PreCheck Credit.
🎁 Typical Welcome Bonus: 60,000 points ($600 value) after $4,000 spent in the first 90 days
💳 Annual Fee: $95
🧡 Best For: People who want a nice cash welcome bonus. Preferred Rewards® members who want high everyday earning, especially on dining and travel.
Bank of America Customized Cash Rewards Credit Card
🏆 Why It’s Good: Earns 3% cash back in the category of your choice (from a list), and 2% at grocery stores and wholesale clubs. Bank of America Preferred Rewards® members earn a 25%-75% rewards bonus on every purchase.
🎁 Typical Welcome Bonus: $200 after $1,000 spent in the first 90 days
💳 Annual Fee: $0
🧡 Best For: Everyday spenders who want to tailor their top earning category — and especially valuable for Preferred Rewards® members.
Chase Freedom® Unlimited℠
🏆 Why it’s good: Earns 3% back on dining and drugstore purchases, and 1.5% on other purchases. Earns Ultimate Rewards® points.
🎁 Typical Welcome Bonus: $200 back after $500 spent in the first 3 months
💳 Annual Fee: $0
🧡 Best For: People who want a simple no annual fee card that earns Ultimate Rewards® points. Points can be worth more when paired with a premium Chase card.
Chase Freedom® Flex℠
🏆 Why It’s Good: Earns 5% back in rotating bonus categories (up to $1,500 per quarter), and 3% on dining and drugstores. Earns Ultimate Rewards® points.
🎁 Typical Welcome Bonus: $250 cash back after $500 spent in the first 3 months
💳 Annual Fee: $0
🧡 Best For: Maximizers who track categories and want strong rewards on rotating spending, dining, and drugstores — without an annual fee.
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About the Author
Written by H. Kinney, author of How to Plan a Free Theme Park Vacation. She writes about using points, miles, and cash-back rewards to reduce the cost of theme park travel.
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