When choosing a cash-back card, start by comparing your spending habits to the rewards categories and rates a card offers. Choosing a card that rewards you for what you’re already buying makes it easy to earn rewards without overspending. For instance, if you spend more on groceries, gas and dining out, you may choose a cash-back credit card with these rewards categories to maximize your rewards. You’ll also want to consider a card’s welcome bonus, which can help you rack up rewards quickly.
If you choose a cash-back or rewards credit card with an annual fee, make sure the card’s perks and rewards can offset this charge. If you don’t earn enough rewards or take advantage of the additional cardholder perks (like monthly subscriptions and merchant discounts), keeping the card may not be worth it.