Why we’re Switching to Cash Back Credit Cards – and You Should Too

Posted By Jon Nickel-D'Andrea on Mar 28, 2020 | 7 comments

Travel is so important for all of us. Not only does it improve your view of the world and other cultures, but it helps you create lifetime memories and broadens your horizons to new foods, people and ideas.

At the same time, cash is king, and in times of uncertainty, it is more important than ever.

It’s also no secret that credit cards that earn airline miles, hotel points, and flexible currencies are crucial in helping you achieve those once-in-a-lifetime vacations.

Since we’ve accumulated a large number of miles and points that we’re not currently using due to social distancing, we’ve moved our spend over to Cash Back credit cards instead of cards that earn airline miles and hotel points. While this will be a short term change, it is the right move right now to not rack up a large quantity of miles and points that we may or may not be able to use in the coming months.

So, which cards are we using? Here’s our list of what’s in our wallet.

Grocery Stores

Two cards captured our attention with our grocery store spend.

The first, the Blue Cash Preferred Card from American Express earns 6% cash back on all Grocery Store purchases, up to $6,000 a year. That averages out to about $500 a month in spend, and I’m sure that the majority of people won’t be going past that number. If you max out the benefit, that’s an extra $360 in cash back every year.

The second is still the American Express Gold Card. You’ll earn 4x membership rewards at all US Supermarkets with a $25,000 cap a year. While technically the card earns Membership Rewards points, you can redeem them for cash back OR hold on to them and send them to airlines or hotels, once things get back to normal.

Office Supply Stores

You’d be surprised at the number of things you can find at your local Office Supply store. When things got funky and inventory dried up for toilet paper, paper towels, sanitizer, and even coffee and sugar, my local Staples was fully stocked on the shelves.

Not only is the Chase Ink Business Cash card a great card to use during the next few months, it is my absolute favorite card on the planet. The card earns a solid 5% cash back (or 5x Ultimate Rewards points) for all Office Supply purchases up to $25,000 a year.

Staples Gift Cards

The Chase Ink Business Cash is a card that will never leave my wallet, and should stay in yours as well.

Restaurants and Dining

In an attempt to diversify our banks (for example, not only having Chase and American Express cards) we opted for two cards that you probably haven’t heard of before.

First, the Wells Fargo Propel Card is a new favorite for us for cash back earning amongst a bunch of categories. It earns 3x points (cash back) on Restaurants, Travel, Gas Stations, Rideshare and streaming services. With a $200 sign up bonus for new cards, it’s a strong card for earning cash back.

Second, the US Bank Cash+ Visa Signature card was off of our radar for a while, but found its way back in. The first year you have the ability to earn up to $550 and every year after that, $400 in bonus categories alone. 

Where are you Dining Tonight?

Earning 5% cash back on your first $2,000 in combined eligible net purchases ($100 per quarter) on two categories you choose. That adds up to $400 cash back and with no annual fee and no limit to the other cash back you earn,

I’m surprised more people didn’t see this card before. For 2020 the restaurant category is Fast Food, for many people, that’s going to encompass a lot of your eating, ESPECIALLY with many cities and municipalities on shelter in place orders.

Gas Stations

Two of the cards that we mentioned before are also two of the cards that we’re using for Gas Stations. Why not, right? I mean, if one card can kill two birds with one stone, even better!

The Wells Fargo Propel card that we talked about earlier will net you a solid 3% back and the Blue Cash Preferred from American Express also earns that same 3% at Gas Stations and Transit along with a myriad of other benefits (like Grocery Stores).

Wells Fargo Propel doesn’t have an annual fee while the Blue Cash Preferred comes with a $95 annual fee.

General Purchases

If the idea of bonus categories and trying to use the right card at the right time drives you bonkers, there are plenty of options for general flat cash back earnings that work in your favor.

The Citi Double Cash card earns 1% cash back when you make the purchase and another 1% when you pay the bill. Unlimited 2% on all your purchases is about as good as it gets.

The other card we went back to was the Chase Freedom Unlimited card. The card earns a flat 1.5% cash back (in the form of Ultimate Rewards points) on every purchase. We’ve held the card for a while but never really used it much. It earns Ultimate Rewards points which of course can be used for cash OR saved like the American Express Membership Rewards for use later on.

What about Airline Miles?

Sure, airline miles will be there, but it seems that in the meantime, cash is king. We’re going to be looking into making the switch back to airline miles and hotel points probably in about 6 months. Right now, cash is going to be our main focus, and these cards offer the best opportunity to earn large amount of cash back in a short amount of time.

What do you think? Are you shifting your earning strategy as well?