My family and I earned $2,855 in cash back credit card rewards last year, all from money we would have spent anyway. This represented a 2.7 percent return on our credit card spending, not including the $95 annual fee we paid for one of our three cards. If you subtract that $95 from the rewards we earned, the total return was 2.6 percent.
My family’s credit card strategy
Our biggest workhorse was the Wells Fargo Active Cash® Card, which gives unlimited 2 percent cash rewards on every eligible purchase. My wife and I are big fans of this card because most spending on our other cards only earns 1 percent cash back. For us, that extra percentage point means the Active Cash is worth an extra $800 per year versus a card that only awards 1 percent back. And it doesn’t even charge an annual fee.
We earned 5.6 percent cash back in 2024 via our usage of the Blue Cash Preferred® Card from American Express (4.8 percent if you subtract the annual fee). Most of those earnings came from grocery purchases (6 percent back at U.S. supermarkets, up to $6,000 in annual spending, then 1 percent back after that). We also use this card frequently for streaming services (6 percent back on eligible purchases), gas (3 percent) and public transportation (also 3 percent).
American Express has a lot of good promotions that add extra value, too. For example, our $16.99 monthly Disney+/ESPN+/Hulu subscription only costs $9.99 per month thanks to the card’s $7 monthly Disney Bundle credit. That adds up to $84 in annual savings. And we took advantage of several Amex Offers throughout 2024, including $30 off a car rental and $20 off an insurance bill.
We earned 3.8 percent back from our Chase Freedom Flex®* card in 2024. For the first time since signing up for the card in 2011, we maximized all four quarterly bonus categories. Spending in those rotating categories earns 5 percent cash back (the 2024 list included grocery stores, Amazon.com, live entertainment and PayPal, among others). Activation is required and purchases beyond the limit earn 1 percent cash back.
The Freedom Flex is also our go-to for restaurant spending (unlimited 3 percent cash back). And we get additional value from Chase Offers (digital coupons similar to Amex Offers) and the Shop Through Chase portal (a form of affiliate marketing that gives extra cash back if you use it to make certain online purchases).
Have a question about credit cards? E-mail me at [email protected] and I’d be happy to help.
What my family could do differently
Because I put a fair amount of thought into my family’s credit card strategy, I’m a bit disappointed to admit that we could potentially get a similar — perhaps even better — return with less effort.
For example, the U.S. Bank Smartly™ Visa Signature® Card* gives up to 4 percent cash back on every purchase. The catch is that the 4 percent payout requires cardholders to have a U.S. Bank Smartly Savings Account and at least $100,000 in eligible U.S. Bank deposit, trust or investment accounts. Cardholders can get 2.5 percent back on everything with an eligible savings/investing balance between $5,000 and $49,999 or 3 percent back on everything with an eligible savings/investing balance between $50,000 and $99,999.
Bank of America has a similar program that bumps the return on the Bank of America® Unlimited Cash Rewards credit card from 1.5 percent cash back on every purchase to 2.625 percent if you maintain at least a $100,000 three-month balance in eligible Bank of America bank and investment accounts.
The Farmers Insurance Federal Credit Union Crystal Visa®* gives 3 percent back on up to $10,000 in spending each monthly billing cycle during cardholders’ first year with the card, then 2.5 percent back on everything (up to the same $10,000 monthly spending limit) in year two and beyond. There are a few other stipulations, including a requirement to hold an eligible checking or savings account with the credit union (although at least it doesn’t require a six-figure balance). And there’s a $99 annual fee (waived the first year).
The Alliant Cashback Visa® Signature Credit Card* gives 2.5 percent cash back on all purchases (up to $10,000 in spending each monthly billing cycle). The payout drops to 1.5 percent back after the threshold (whereas the Crystal Visa doesn’t give any rewards beyond the $10,000 monthly limit). The 2.5 percent rate also requires customers to have an Alliant High-Rate Checking account (which only yields 0.25 percent APY), opt into e-statements, receive at least one electronic deposit each month and maintain an average daily balance of $1,000.
I’m not ready to go all-in on any of those cards. While potentially valuable, each has a long list of requirements, and I’m not in a rush to jump through all of those hoops.
We could also add a card that emphasizes a certain type of spending we’re not currently maximizing. Travel is the main category that comes to mind, but we’re pretty happy with our current card lineup. We prefer cash back over travel rewards and three cards feels like the right number for us right now. My wife would probably prefer even fewer, and while I know some people who have dozens of cards and get great benefits, I once had as many as six cards and decided that was too many for me.
The bottom line
The best credit card (or cards – the average American has about four credit cards, according to Experian) is a subjective decision. To arrive at the right answer for your situation, ponder questions such as: What is your credit score? Do you carry a balance? What are your top spending categories? What do you want to get out of your rewards? How much complexity are you willing to take on?
I could squeeze a little more value out of my credit card strategy, but all things considered, I’m happy with the cards I’m currently using. Getting almost $3,000 back from spending my family would have done anyway is worth celebrating.
The information about the Chase Freedom Flex®, U.S. Bank Smartly™ Visa Signature® Card, Farmers Insurance Federal Credit Union Crystal Visa®, Alliant Cashback Visa® Signature Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
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