Credit card reward strategies for cashback and points

Credit card reward programs offer various ways for consumers to recoup costs through points, miles, or cashback. While some cards advertise high percentages, such as 6%, these often apply to specific categories like supermarkets rather than gasoline. For example, the American Express Blue Cash Preferred Card offers 6% cashback on eligible U.S. supermarket purchases and streaming services, but provides a 3% rate at eligible U.S. gas stations.

Other options, such as the Citi Custom Cash Card, can offer up to 5% cashback on the highest spending category in a billing cycle, which may include gas stations. When evaluating these cards, consumers should consider annual fees, interest rates, and spending limits, as these costs can offset the value of the rewards.

Reward structures differ: points and miles are units that can be redeemed for travel or products, whereas cashback returns a portion of the purchase directly to the cardholder. To maximize benefits, users should align card categories with their regular spending habits.