Using Credit Cards With Cash Back Rewards

There are numerous credit cards that offer cash back rewards. No, I'm not talking about cash advances on your credit cards. These usually carry an upfront fee of 3-5% and immediately start accruing interest at the highest rate, usually 27-36%. I'm not a big fan of cash advances on your credit card, although compared to payday loans, they sure can seem like a bargain!

I'm talking about using your credit card to purchase something that you'd buy anyway, and getting 2-5% cash back as a reward for using your credit card. Certain cards offer upto 5% cashback for gas purchases. With gas prices ranging close to $5/gallon where I live and rumored to hit $8/gallon by summer, getting 5% cashback is pretty darn good. If you spend $50/week on gas, using a cash rebate card can get you $130 cash back at the end of a year. Its not a lot, but its better than nothing!

My favorite cash back card is the Discover® Open Road Card (link goes direct to application).
You get 5% back on all gas and automotive purchases.

Another one of my favorite cards is my Discover® Business Card
, which give me 5% back on all my office supplies. That card gives 2% cash back on Gas and 1% on everything else, so I only use it for office supplies.

But the card that gets the most usage is my
TrueEarnings® Card from Costco and American Express. It gives 3% cash back on travel related purchases like tickets, 2% on food and 1% on everything else. By getting the right cards, its easy to an extra $500/year!

Whats in your wallet ;-)