Best Cash Back Credit Cards


Hey I’m Adam Jusko from ProudMoney.com 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 ProudMoney.com. 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 1.5 “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 1.5% 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 1.5%, 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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