This Is the Most Popular Type of Credit Card Among Americans. Do You Have One?

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Is your primary credit card serving your needs? Read on to see why a strong cash back program is key. 

One benefit of swiping a credit card when you visit the store is getting rewarded for the purchases you’re making. Not every credit card offers rewards like cash back on purchases. But if you’re not getting cash back from your primary credit card, you may want to apply for a new one.

A very popular option among consumers

Recent research from The Ascent found that cash back credit cards are the most popular type of credit card, and that 68% of consumers have one. If your current credit card isn’t giving you cash back on purchases, or is only giving you minimal cash back, then it may be time to swap your current go-to card for a new one.

It’s common for cash back credit cards to not only offer 1% back on most purchases, but bonus cash back in specific categories. You might, for example, find a credit card that offers 3% cash back on gas or 2% cash back on restaurant purchases. If those are categories you tend to spend a lot of money on, then you might get rewarded generously.

You might also be eligible for a sign-up bonus if you apply for a cash back credit card. Usually, you’ll get a lump sum of money for meeting a specific spending threshold within three months of opening your account. So if you commonly spend $1,000 a month on credit card purchases, it could pay to apply for a cash back credit card with a sign-up bonus of $250 for spending $3,000 on your card within 90 days of opening your account.

Choose your card wisely

You might manage to get bonus cash back from your credit card for certain purchases. But before you apply for one of these credit cards, assess your spending to see what bonus category is likely to benefit you the most.

One credit card might offer 3% cash back at the gas pump and 1% on all other purchases, while another might offer 3% back at the supermarket and 1% back on everything else. So if you’re torn between the two, comb through your credit card statements from the past six months and see which category you did more spending in.

Also, keep in mind that some bonus cash back categories come with a limit. You may, for example, find a credit card that gives you 3% cash back on gas, but only on up to $4,000 at the pump per year. So that setup may not be worth it for you.

Cash back credit cards effectively pay you for the things you were already planning to buy. And using them could make your bills much easier to manage, because for every dollar you spend, you’re getting a portion (albeit a small one) returned to you.

But it’s also important to choose the right cash back credit card when you’re looking to add a new card to your personal mix. That means studying how the card works and what criteria you need to meet to make the most of its credit card rewards program.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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