Cash back credit cards for your business
“We’ve all seen the commercials for cash back credit cards where they pitch how much money you’ll make once you have their particular card in your wallet,” said NextAdvisor Editor, Tasha Lockyer. “It’s important to know that although a card can sound good on TV (or the radio), it may not be the big money-maker you expect. Cash back cards are often subject to complicated terms and conditions, earning limitations and quarterly signup requirements. Plus, a cash back card that works for one person’s spending profile may not work as well for another’s.”
NextAdvisor analyzed their popular cash back cards, evaluating exactly how over 7,500 of their users earned rewards and researching potential earning limitations or other hassles, basing each card’s earnings on real-life data collected over the past 15 months.
Users told NextAdvisor that they spend monthly an average of $300 on groceries, $180 on gas, $150 on eating out, $25 at department stores and $444 on everything else. They applied those numbers to each credit card, using the individual card earning percentages to calculate how much cash back each card would generate. They also included cash back bonuses, subtracted any annual fees and took into account earning limitations.
The 2014 Cash Back Analysis results yield the top three business credit cards:
The Blue Cash Preferred Card from American Express stood head and shoulders above the pack, earning $672 cash back over the course of 2 years. With an enormous 6% cash back at supermarkets (on up to $6K in purchases annually), 3% at gas stations and select department stores and 1% on everything else, the Blue Cash Preferred earned over $100 more than our #2 rated card.
It also features $100 reward dollars after spending $1,000 in the first 3 months, a year of Amazon Prime and a 0% intro APR on purchases and balance transfers for 15 months. There is an annual fee of $75, but this is already accounted for in the 2-year earnings of $672.
Second place goes to the BankAmericard Cash Rewards Credit Card, which earned $522 over a 2 year time period. Users will earn 2% cash back at grocery stores and 3% on gas for the first $1,500 in combined grocery and gas purchases each quarter (after the limit is reached, users earn the standard 1% cash back). All other purchases earn 1% cash back. Plus, you’ll get an additional 10% bonus each time you redeem your cash back rewards into a Bank of America savings or checking account (not taken into account in our analysis).
This means if you redeem $100 you’ll receive a bonus $10. It’s the bonus that keeps on giving! Additionally, you’ll earn $100 cash rewards bonus after spending $500 in the first 90 days and there is no annual fee. Overall, this is a strong work-horse of a cash back card and their top choice if you don’t want to pay an annual fee.
In third place is the Blue Cash Everyday Card – the sister card to our #1 ranked Blue Cash Preferred Card. It earned $507 during the 2 year period. You’ll earn 3% at supermarkets (on up to $6K per year in purchases), 2% at gas stations and select department stores and 1% on everything else. You’ll also enjoy a $50 bonus after spending $1,000 in the first 90 days, a year long membership to Amazon Prime and a 0% intro APR on purchases and balance transfers for 15 months. Plus, there is no annual fee.
The other cards included in their analysis, in order of most cash back earnings to least were:
- Capital One Quicksilver Cash Rewards Credit Card
- Chase Freedom – $100 Bonus
- Citi Dividend Platinum Select Visa – $100 Cash Back
- Discover it Card
- Journey Student Rewards from Capital One
- Capital One QuicksilverOne Cash Rewards Credit Card
- TrueEarnings Card from Costco and American Express
They’ve created a cash back calculator to help figure out which is best for you, based on your own spending.