How I Took Advantage Of Credit Card Rewards This Summer

I’m on track to earn a personal record of about $3,000 in cash back credit card rewards this year. That’s enough to pay for a nice vacation or offset various day-to-day expenses — and it hasn’t even taken that much work on my part.

Earning a meaningful amount of credit card rewards doesn’t need to be complicated. Here’s how I do it.

Have a question about credit cards? E-mail me at [email protected] and I’d be happy to help.

Putting my most-used card to excellent use

Most of my family’s credit card spending goes on our Wells Fargo Active Cash® Card, which awards unlimited 2 percent cash rewards on every purchase. That makes it our most lucrative card for most spending categories. I also like that it doesn’t charge an annual fee, a feature most cardholders apparently appreciate since only 19 percent of credit cardholders paid annual fees in 2024, according to the Atlanta Fed.

Don’t get me wrong: Sometimes, annual fees are well worth it. Many of the best travel credit cards charge annual fees, and there are plenty of devoted fans who enjoy perks such as airport lounge access, expedited security screenings, flight and hotel upgrades, free checked bags and more that fully offset the annual fee and then some. But these cardholders are the exception, not the rule.

Maxing out at the supermarket

One of my biggest credit card successes so far this year has been taking full advantage of the Blue Cash Preferred® Card from American Express‘ 6 percent cash back at U.S. supermarkets (up to $6,000 in annual spending). My family hit that threshold in late August, meaning that we earned $360 on groceries we would have bought anyway ($265 if you subtract the annual fee ($0 intro annual fee for the first year, then $95) from those earnings, although we get other benefits, too).

This is also our go-to card for streaming services (6 percent cash back on select offerings) and transit (3 percent back on parking, tolls, trains and more). I like how the Blue Cash Preferred recently raised its Disney streaming credit from $7 to $10 per month. This pays for all but 99 cents of our monthly Disney+/Hulu subscription. The Blue Cash Preferred is the only annual-fee card I’m currently using, and my family gets a lot of value from it.

Live entertainment and gas have been summer-friendly rewards categories

Our third card, the Chase Freedom Flex®*, has been a solid contributor to our summer credit card rewards strategy as well. From July 1 through Sept. 30, it’s offering 5 percent cash back on select live entertainment, Instacart, and gas station and electric vehicle charging station purchases (activation is required; 5 percent earnings apply on up to $1,500 in quarterly spending. Cardholders earn 1 percent back after that).

Like a lot of people, we spend more on gas during the summer months, since we’re out doing more things. And we’ve made good use of the live entertainment category for purchases such as concert tickets, theater performances, and zoo and aquarium admissions.

If we max out the $1,500 quarterly spending limit, that $75 in cash back will essentially pay for a couple tanks of gas or a day at the zoo or aquarium.

Cash back is king

Bankrate’s research shows that cash back is Americans’ favorite credit card reward — and it’s not even close. About six in 10 rewards credit cardholders redeemed for cash back or gift cards over the past year, according to Bankrate’s 2024 Credit Cards Rewards Survey, while only 17 percent exchanged their rewards for a free flight or hotel stay.

With the simplicity and universal appeal of cash back as the backdrop, this is why I often say that no-annual-fee 2 percent cash rewards cards, such as the Wells Fargo Active Cash, are in the running for the title of best credit card. The Citi Double Cash® Card is another popular example (that one technically gives 1 percent back when you make a purchase and 1 percent when you pay it off).

These cards aren’t nearly as flashy as luxury travel offerings, like the Chase Sapphire Reserve® and The Platinum Card® from American Express. But they’re a heck of a lot cheaper (the Sapphire Reserve recently raised its annual fee to $795 and the Amex Platinum charges $695). If you utilize the many perks offered by those cards, you can come out ahead. But most people don’t travel enough, don’t spend in the right categories or don’t remember to take full advantage.

I could do better, but I’m happy with where I’m at

I’ve earned $1,251 in cash back from the Active Cash this year, $428 from the Blue Cash Preferred and $325 from the Freedom Flex. I maxed out the Freedom Flex categories in Q1 but only came in a little over halfway in Q2. This quarter I’m about halfway there but should come close to maxing out since there’s a little over a month to go.

I’ve also taken advantage of related earning opportunities like 3 percent on dining with Freedom Flex (so it’s not all about the 5 percent categories). I also use things like Chase Offers and Amex Offers.

The thing is, I could earn even more credit card rewards… if I were willing to jump through a few more hoops. Cards like the Bank of America® Unlimited Cash Rewards credit card and the U.S. Bank Smartly™ Visa Signature® Card* feature opportunities to earn more than 2 percent back on purchases when customers meet certain requirements (for example, having a certain type of checking account and/or maintaining a required minimum balance in eligible deposits or investments).

I’m at the stage of my life where I want a solid return from my credit card usage, but I’m not willing to go too far out of my way to get it.

Rearranging my direct deposits, bill payments and investments just isn’t worth it, in my opinion. At least not right now, with busy days split between work and home life and two young children in tow.

I’ve also been saying for a while that my family could get a second Blue Cash Preferred Card in my wife, Chelsea’s, name, so that we can get even more value from the supermarket category.

But that brings me back to the value of simplicity. Signing up for another card is one more thing to do and manage, and we’re comfortable with the three cards we’re currently using. Chelsea is far from a credit card rewards enthusiast. She would love it if we only used one card, since it’s hard for her to remember which card to use for various purchases. I try to help by writing sticky notes on each card and taking a picture she can store in her phone.

The bottom line

While I know some people who have 30 or more cards and get great benefits, that doesn’t describe most of us. The average American has 3.7 active credit cards, according to Experian. As long as you pay your credit cards in full to avoid interest, any rewards you earn will stack up in your favor.

Don’t let “perfect” be the enemy of “good.” Even if you just use a no-annual-fee 2 percent cash back card for all of your credit card purchases, that can add up to a substantial discount over the course of the year. And if you’re willing to throw in a card or two or three with even better rewards in your top spending categories, that’s even better.

*The information about the Chase Freedom Flex®, U.S. Bank Smartly™ Visa Signature® Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the issuer.