Monday, 8 March 2021

Best Cash Back Credit Cards of 2018

Best Cash Back Credit Cards of 2018
31 Jul

Hey I'm Adam Jusko from ProudMoneycom and in this video I'm talking about the best cash back credit cards

We're gonna talk about seven different cards in this video and we're gonna sort of balance things out between sort of everyday cards for everyday purchases and cards that offer sort of special cash rebates depending on the type of purchase you make So we're going to start with the everyday cards and then we'll work our way to the others Before I go any further, please subscribe to our channel if you are new to ProudMoneycom We do videos on credit cards as well as other personal finance topics, so if you subscribe you'll know what's going on with us all the time

So we are going to talk first about the best everyday cash back credit cards, these are essentially the cards that you should be pulling out of your wallet on an everyday basis If you're not making a purchase that you're specifically getting a very large rebate on or you just don't really care about juggling credit cards to get different amounts depending on the purchase, these are the cards to go for So the number one and two kind of go hand in hand The number one card is the Citi Double Cash card This is a card that gives you a flat 2% cash back on all your purchases

The only sort of trick to this is: you get 1% cash back when you actually make the purchase and you get the other 1% cash back when you have paid that purchase off, for a total of 2 percent on each purchase that you have made and actually paid off So, easy enough, you're paying off your credit cards in full every month I am sure, so you should be able to get that 2% cash back without any problem The other piece to this is Citi used to have a 0% offer that went along with this cash back card, they've changed things so actually there's a way for you to make more money even though you don't have that 0% offer anymore As of this video, at least, you can earn a $100 bonus if you spend $500 with the card in the first 3 months of having it Now the second card is sort of the next one that we consider what should be your base cards for your everyday purchases and that is the PayPal Cashback MasterCard that also offers a 2 percent flat cash back rate on anything that you buy

It gives you that 2% cash back immediately, it's not the same formula where you're getting the 1% and the 1%, so in some ways it's actually an easier to understand card The one difference that you should know with this is that 2% is going to go into your PayPal account If you don't have a PayPal account, you'll have to open one in order to have the money deposited in there If you have one it's going to go in there You can either use it out of your PayPal account or you can link up your bank account with your PayPal account and you can have the money moved into your checking account whenever you feel the need to do that

So those are sort of our two favorites — the 2 percent flat cash back cards are the Citi Double Cash and the PayPal Cashback MasterCard Third card I want to talk about is the Discover It Miles card This is a card that sounds like a travel card — and it is, sort of It gives you 15 "miles" per dollar that you charge to the card and those miles can be used to offset your travel purchases at a 1 mile equals 1 cent formula

So that means 10,000 miles would equal $100 for example We actually like this as a cash back card in particular, because in the first year that you have the card, at the end of that first year they're going to double all the earnings that you've got, so you're gonna have that 15% that's going to get doubled at the end of that first year so essentially you're getting a 3% cash back at the end of that first year Because you can use those miles not only as miles to sort of as points to offset travel, but you can also use them for just straight cash back if you choose to do so So that's giving you three percent cash back in the first year on all the purchases that you make with the Discover It Miles card Now after that first year it's a different story — you're going to go down to the 15%, it's not as good a deal anymore

I just talked to you about two that have two percent so, great card for the first year, after that you may want to move to one of the other cards Now the fourth card in sort of the everyday category, one of our favorites, is the Uber Visa

This is a card that gives you 4% rebates on dining, three percent rebates on airfare, hotels and any vacation rentals — and that includes Airbnb if you are an Airbnb fan when you vacation You get a two percent rebate on your online purchases — that includes your Uber rides and it also includes things like subscriptions to Netflix and that sort of thing, so "online" means sort of has a wide umbrella there for those two percent

So that's giving you, you know, a lot of rebates on a lot of your everyday purchases or purchases that you might make especially if dining, travel, and online is sort of where you're spending a lot of your money You'll get one percent cash back on everything else that you buy with the Uber Visa So if you're a certain type of person who makes those a certain type of purchase a lot, this one could be a card that actually overall does even better than those cards that I talked about before If you're not in the into those categories as much, then go again for that 2% cashback or maybe start with the Discover for a year and move to one of the other cards that I talked about Now that's sort of the everyday cards If you're someone that is really into maximizing your cashback every month and you're willing to juggle multiple cards, you could use those cards as sort of the cards I just talked about as sort of your base, but then there's three other cards I want to talk about that you may want to have one or maybe all three depending on if you have a good credit history and you can add three credit cards, you might want to consider doing so, and then you'll have a card that you can pull out for just about any purchase that you make

So those cards that give 5% rebates on certain purchases are the US Bank Cash+, the Chase Freedom card and the Discover It card Now the US Bank Cash+ card actually lets you do some choosing as to how what rebates you

or what categories you want the higher rebates in So you'll get five percent cashback on two categories of your choice US Bank uses a couple examples on their website — they use clothing stores and cell phones as two potential five percent categories, the other categories are somewhat of a mystery, they don't necessarily offer that information up, so if you have the US Bank Cash+, I'd love to hear about it in the comments if you know what those other five percent categories are

You'll also get 2 percent on one "everyday" category — something like groceries or the kind of things that, you know, that you purchase every day And then you get one percent cash back on everything else So that's a card that has some 5% rebates that you can choose, and then pull that out when you when you're making purchases in that category The Chase Freedom card and the Discover It card work essentially the same — each one of them gives 5% rebates in certain categories that change each calendar quarter So what they tend to do is choose a purchasing category that sort of makes sense for the time of year it is, and give you 5% rebates on those purchases only, and you get a one percent rebate on everything else So, for example, you might have the end of the year when you're near the holidays, there may be a 5% rebate on things that you're more likely to be purchasing, whether it's department stores or it's something that has to do with gift-giving, that may be where they're going In the summer they might go for five percent cash back in the home-improvement categories

They try to kind of mix it up and hopefully hit where you're doing your spending in each calendar quarter Now the thing I'm going to talk about for all three of the cards I just talked about with these five percent rebate categories is they all make you activate that five percent rebate every calendar quarter, which doesn't really make a whole lot of sense

Because if they're offering the five percent rebate, you would think they could just give it to you automatically without forcing you to say "yes I want it" You have the card so obviously you want it, right? But for whatever reason you have to "activate" that card to show them that you are that you want that rebate and, you know, maybe from their end it's a way to make you interact with them and for them to really know that you are paying attention to when they are changing these categories

But on the downside, it also means that for some people, if they don't do it, they're gonna get 1% cash back in those categories if they haven't activated So that's a little thing that sort of bugs me about these cards Some people tell me it's not a big deal and that you can, you know, even if you miss the deadlines or whatever you can still kind of do it later and it'll work out, but I don't particularly like that formula of how they run that, so you should know that's there and make sure that you deal with that So that's it really Those are 7 cards

If you're someone that likes to juggle a lot you can hold juggle your cards and are willing to pull out different ones at different times, go for some of those 5% cards that have the changing categories but also hold on to those one or two of those 2% cash back cards or maybe the Uber Visa if that works for you Those are 7 good examples to use in the credit card market

I would love to hear if you have other cards that you consider to be great cash back cards Please leave a comment if you will That is it for this video Thanks for watching Please go to ProudMoney

com where we have other "best of" lists of credit cards and reviews and all sorts of other good personal finance stuff too Thanks

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