Cash Back Credit Cards: The Best Way to Save Money and Earn Rewards

Title: Americans Prefer Cash Back Credit Cards Over Travel Rewards Cards, Study Finds

According to research from The Motley Fool Ascent, the majority of Americans with a net worth of less than $1 million prefer using cash back credit cards over travel rewards cards. The study found that 72% of non-rich individuals have at least one cash back card, compared to 59% of those with a net worth over $1 million.

Cash back credit cards are popular among consumers due to their straightforward nature. Users earn a percentage of their spending back on purchases, with some cards offering higher rates in specific categories such as dining or groceries. One popular card, the Blue Cash Preferred® Card from American Express, offers 6% cash back on U.S. supermarkets and select U.S. streaming subscriptions.

While earning cash back can be rewarding, experts recommend not letting the rewards accumulate. Instead, it is advised to redeem cash back as a statement credit every month. This not only reduces the cost of the next credit card bill but also helps preserve the value of the cash in the face of inflation.

In addition to statement credits, consumers have other options for redeeming cash back rewards, such as exchanging it for actual cash, gift cards, or using it for travel expenses. Ultimately, the choice of how to redeem cash back rewards is up to the individual and their budget.

For those interested in a top-rated cash back card with a 0% intro APR until 2025, experts recommend checking out the latest offer available. This exceptional card features a high cash back rate and no annual fee, making it a popular choice among consumers.