Cashback: Turn every purchase into money back, hassle-free.

If the goal is to stop losing money on cards that deliver little and start seeing real returns in everyday life, cashback is the most direct path.

What is real cashback?

Cashback is a percentage of the purchase value that is returned to you in dollars.

You can use this amount to pay off your bill, transfer it to your account (when available), or convert it into credits.

The advantage lies in the predictability: you know exactly how much you get back each time you use the card.

Two models that work in practice.

Flat rate on everything: for example, 2% on all purchases. It's simple, predictable, and works very well for profiles with varying spending levels.
Boosted categories: higher percentages (3% to 5%) in areas such as restaurants, pharmacies, supermarkets, or travel through the issuer's portal. Requires a bit more management, but can increase returns if your expenses are concentrated in these categories.

For most, a fixed 2% card serves as a "base." If it makes sense, add a second card with strong categories for specific purchases.

How much does it yield in the real world?

Simple example:

Total monthly expenses: $1,500
2% cashback on everything: $30 per month
In 12 months: $360
With a $200 welcome bonus (when applicable), the first year can reach a value of $560.

It's money that comes back to you, reduces your bill, and improves your monthly cash flow.

When the fixed 2% wins, the "hidden rules"

If you don't want to manage categories and quarterly activations, the fixed 2% often outperforms confusing programs with 0.5% here, 1% there, and conditional bonuses.

Furthermore, for large purchases outside of any special category, the 2% guarantees consistent returns.

How to choose a good cashback card

No annual fee: cashback shouldn't start out negative.
Clear rules: no need for monthly subscriptions to receive the basic service.
A feasible welcome bonus: realistic initial spending targets.
Reliable app: easy redemption to reduce your bill.
0% Introductory APR (optional): useful for planned purchases or balance reorganization, if you have a payment plan.
No fees on international purchases: save money on travel and foreign websites.

Best practices for maximizing return

Centralize recurring expenses: subscriptions, apps, gym memberships, delivery services.
Always pay the full amount of your bill: high interest rates negate the cashback benefit.
Make partial payments if usage increases too much before closing.
Redeem regularly: unused cashback doesn't generate returns.

Simple two-card strategy (optional)

Basic card: 2% fixed for all purchases.
Complementary card: use only in categories where the bonus is higher (for example, restaurants or pharmacies).

If you don't want to manage two cards, stick with just the basic one — you'll still get excellent annual results.

How cashback indirectly helps your credit score.

It encourages full payment (avoiding interest).
Keep usage under control when you're not chasing categories at all costs.
It is beneficial to keep the same card for years, improving the average age of the history.

Mistakes that destroy the value of cashback.

Loading funds and paying high interest rates.
Paying an annual fee without recouping the cost in real benefits.
Opening many cards in sequence and spreading out their use will help.
Forgetting to pay on time (late payments lower your credit score and can reduce credit limits).

Suggested monthly routine

Start of the cycle: concentrate fixed expenses on the cashback card.
Throughout the month: monitor the app and keep usage below the limit.
Three days before closing: if necessary, make a partial payment.
On the due date: pay the total amount.
After payment: redeem your cashback to offset your next bill.

Quick questions

Is cashback better than points?
For most, yes. It's simple, predictable, and generates immediate value. Points can yield more for frequent travelers who are proficient in reward programs and partners.

Do I need two cards?
No. A good basic 2% card is sufficient. The second option is only worthwhile if you really intend to take advantage of boosted categories.

Is 0% APR mandatory?
No, it's a useful extra with a clear payment plan. Without a plan, it can become a trap when the promotional period ends.

A popular card to use as a base

Widely accepted cashback cards with a simple structure help make earning cashback a routine part of life.

They function like a "daily card": they consolidate most of your recurring expenses, reduce friction in monthly tracking, and ensure that each purchase generates a clear and predictable benefit.

The fewer hidden rules and fewer redemption steps, the greater the chance you have of actually capturing value throughout the year.

Among the options available on the market, look for those that offer direct cashback on all purchases, with no annual fee, and that have a good app for redemptions and control.

Features like payment reminders, in-app payments, viewing accumulated cashback, and the ability to redeem directly on the bill make a difference in everyday life.

It's also worth noting whether the issuer consistently reports to all three bureaus and offers automatic credit limit increases based on good behavior.

If you want to combine consistent returns, strong everyday categories, and a large issuer with a robust ecosystem, a highly regarded alternative among consumers is Chase's cashback family, which includes a product with good acceptance and relevant benefits in pharmacies, restaurants, and travel through the issuer's portal.

This combination usually works well for those who prefer predictability, but still want the chance to multiply their gains in popular categories and in bookings made within the issuer's environment.

See details, current categories, possible welcome bonuses and terms and conditions directly on the official Chase page:

👉 Visit the official page:
https://creditcards.chase.com/cash-back-credit-cards/freedom/unlimited

Arthur November 4, 2025

Finances