Discover How to Save Hundreds Each Year with Smart Cash Back Strategies

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Key Points

• Earning money with cash-back credit cards isn’t difficult if you have the right cards.

• Using a combination of cards is the best way to increase your monthly rewards.

• You can use the rewards toward paying off a balance or to help build up savings.

• Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.

Cash-back credit cards reward you with a small percentage of money back every time you make a purchase, essentially giving you a rebate on everyday spending. These cards come in several forms; some offer a flat rate on all purchases, while others feature rotating or fixed categories such as groceries, gas, dining, or online shopping. When used wisely and paired with paying off your balance each month, cash-back cards can put money back in your pocket without costing you a dime. For many consumers, these cards are one of the simplest and most effective ways to squeeze extra value out of regular expenses.

If you’re using a cash-back credit card, there is a better-than-good chance that you want to maximize your rewards. As you’re essentially earning free money by spending on things you want or need to buy, it’s hard to ignore how easily you can maximize cash-back earnings.

Ultimately, it’s essential to know that you must still watch your spending even as you try to earn hundreds of dollars a year in cash-back rewards. It’s also crucial to ensure you’re paying off your purchases quickly. Otherwise, accrued interest will outweigh any cash-back rewards you might receive.

This post was updated on December 1, 2025 to clarify the Chase card has changed to Chase Freedom Flex, the specific Blue Cash card that offers 6% back at grocery stores, the max reward for the $6,000 limit, as well as to add a "common mistakes" section.

Make Use of Rotating Categories

One of the easiest and simplest ways to earn hundreds of dollars a year with a cash-back credit card is to take advantage of rotating rewards. The two top cards in this space are the Chase Freedom card and the Discover it, both offering quarterly rotating categories.

These categories include grocery stores, gas stations, gym memberships, Amazon, and other choices. If you make full use of these categories, as they change every three months, there is no reason why you can’t quickly rack up some easy cash-back rewards.

Use Cash Back Sites

If you’re unfamiliar with websites like Rakuten or Ibotta, you must get familiar with them as soon as possible. The same goes for Capital One Shopping, as these portals will help you save hundreds of dollars annually by giving you extra cashback savings.

Last year, just from scanning receipts from my family’s weekly Target shopping trips with Ibotta, I earned back well over $100, and this was me using the app intermittently throughout the year. Someone who dives deep into this online shopping space can learn how to save hundreds yearly.

The highlight here is the Capital One shopping portal, which offers names like Nordstrom, Kohl’s, and 30,000 total retailers to help you save hundreds every year. The discounts and savings found on this site will vary, but it’s all money you would otherwise not have if you didn’t take the extra 30 seconds to use this site.

Find Bonus Categories

Many of us grocery shop at least once a week, often spending hundreds of dollars to feed a family. In these cases, taking advantage of something like the Blue Cash Preferred Card from American Express, which offers 6% cash back at supermarkets around the United States, can be a huge win.

You can earn 6% on up to $6,000 in grocery purchases, with a max reward of $360 a year. Add in that this same card can earn you 3% cash back on every gas station fill-up, and you can quickly see how bonus categories from certain credit cards will become a mainstay of refilling your wallet.

Carry Multiple Cards

Of course, the best way to save hundreds of dollars yearly is to carry multiple credit cards. One of the smartest strategies is to have a card like the Blue Cash card from American Express for use with gas stations and grocery trips. However, you’d also want a card like the Chase Freedom Flex, which offers 1.5% cash back on every purchase.

If you’re a Wells Fargo banking customer, grab the Active Cash card and get even more with 2% cash back on every purchase. With another cash-back card offering specific or rotating categories, you can sit back and watch the reward totals add up. This money can be used toward your savings or to pay down your balance.

Save Your Rewards

Building on the idea above, instead of just letting your cash-back rewards sit and continue to accrue, you can and likely should cash this amount and start putting it toward an emergency savings fund. Alternatively, you can put this money toward a major goal in your life, like paying off a high-interest loan.

If you can accrue over $1,000 per year in credit card rewards, you might want to consider dropping it into a high-yield savings account and let it be the start of additional savings. There is no question that this money can be best used outside of paying off your credit card balance.

Avoid These Common Cash-Back Mistakes

Even the best cash-back strategies can cause problems if you slip into common pitfalls, like chasing rewards categories you don’t naturally spend in, carrying balances that accumulate interest, or opening too many cards too quickly. Remember to be intentional and avoid these traps, so you can ensure that your rewards strategy actually saves you money rather than costing you more in the long run.

Monitor Your Spending

No tip around saving hundreds each year with a cash-back credit card is as valuable as a reminder to watch what you spend. Monitoring your purchase habits is the best way to ensure you are not overspending. If you're careful, you'll potentially save hundreds per year because you are no longer making unnecessary purchases.

Why Some Investors Get Rich While Others Struggle

The fact is there are two totally different investment paths you can take right now. And while either can make you some money, choosing the right one at the right time can mean the difference between just getting by and getting truly rich. Most people don’t even realize the difference, and that mistake can be devastating for your portfolio. Whether you’re investing $1,000, or $1,000,000 today, learn the difference and put yourself on the right path. See the report.