How Credit Card Rewards Became My $3,000 ‘Extra Paycheck’

I’m a big fan of getting money back from purchases I would have made anyway. I rarely carry cash, use a debit card or write a check. Instead, I used three credit cards for most of my purchases in 2025, and when all was said and done, I earned close to $3,000 in cash back credit card rewards — I think of that as an extra paycheck for free.

My strategy is simple, and anyone with good personal finance habits can do it. It starts with a solid foundation (in my case, a card that gives an unlimited 2% cash rewards on every purchase). From there, I lean into certain categories in which my family spends a lot of money – getting an even better return on purchases such as groceries, gas and restaurant meals.

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Bankrate?s Ted Rossman nearly earned $3,000 in credit card rewards last year without changing his spending habits. Here?s how you might be able to do the same.

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Have a question about credit cards? E-mail me at [email protected] and I’d be happy to help.

My go-to card for everyday purchases

The Wells Fargo Active Cash® Card wins my Most Used Card of 2025 award. It’s a great all-around option because it offers unlimited 2% cash rewards on every purchase. I appreciate the simple, solid return, and I like how the card doesn’t charge an annual fee. Sure, there are a few cards that offer even higher payouts, but generally require changing your financial behavior — for example, joining a certain credit union, having a specific checking account, etc. Getting 2% cash rewards on everything you buy represents the high end of the mainstream cash back market.

Cash back is Americans’ favorite credit card feature by a wide margin. Half of rewards cardholders told us cash back is the best feature of the card they use most often, with nothing else even cracking double digits. Travel rewards points/miles tied for second with just 9% of the vote.

There’s absolutely nothing wrong with pursuing travel rewards like airline miles and hotel points (as long as you’re not overspending or carrying expensive credit card debt, of course). As much as I love cash back cards, I’ll admit that travel rewards can be more lucrative in some instances. But travel rewards are also more complicated. It can require a lot of work to research the optimal redemptions, and taking advantage of them often requires flexibility that I don’t have with a full-time job and two kids in school.

My favorite grocery-shopping card companion

Earning cash back on my family of four’s many everyday expenses puts a meaningful amount of money back into my bank account. We spend a lot on groceries, so we extract a lot of value from the Blue Cash Preferred® Card from American Express. It awards 6% cash back at U.S. supermarkets (up to $6,000 in annual purchases, then 1% back after that). We easily maximize that threshold each year, totaling $360 in rewards, far offsetting the $0 intro annual fee for the first year, then $95. We also get 6% back on select U.S. streaming services and 3% back on U.S. public transit and gas station purchases.

All told, I earned a blended return of 5.9% on every dollar I spent using the Blue Cash Preferred in 2025 (4.9% if you subtract the annual fee from the rewards). That’s a remarkable ratio. It was aided by the elevated grocery rewards and the $99 I received in Disney Bundle credits (up to $10 per month on eligible services such as Disney+, Hulu and ESPN+).

My rotating catagories winner

My third and final personal credit card is the Chase Freedom Flex®*. In 2024, I maximized all four sets of quarterly rewards categories (5% cash back on up to $1,500 in eligible spending, then 1% back after that — note that activation is required). I didn’t do quite as well in 2025, but I still earned an average of 3.6% on every dollar I spent using the Freedom Flex. Almost all of that was on eligible 5% categories (groceries, Amazon.com and select live entertainment were a few of my favorites last year) or dining, which earns 3% cash back throughout the year.

Here’s where I could improve on my strategy

The only big credit card spending category that I’m not optimizing is travel. As I mentioned, there are a ton of travel rewards cards, but I’m happier focusing on cash back. There was a time when I had multiple travel cards with annual fees and various perks, but they just weren’t working for me. My family isn’t loyal to any particular airline or hotel chain, and even the general-purpose travel cards don’t fit our lifestyle as well.

That said, one cash back card with healthy rewards on travel purchases has caught my eye: the Wells Fargo Autograph® Card. If I were to add another card to my wallet, it would probably either be the Autograph or a second Blue Cash Preferred (in my wife’s name, to effectively double our household’s 6% grocery rewards cap to $12,000 in annual spending).

The bottom line

Across my three cards, I earn at least 2% back on every purchase. I earn 3% back on dining, gas, public transit and drugstore transactions. I earn 6% back on eligible grocery and streaming spending, and 5% back on a host of other categories that come and go throughout the year.

A good credit card rewards strategy starts with paying in full to avoid interest. Beyond that, it’s all gravy, really. Get started by:

• Looking to emphasize your key spending categories. 
• Deciding whether travel or cash back suits you best. 
• Evaluating how much complexity you’re willing to take on. 

Some people treat credit card rewards like a fun game and enjoy researching various options to maximize rewards so they feel like they’re beating the system. Others find it confusing and tedious. You have to know yourself.

Remember: As long as you avoid interest and overspending, it’s all free money.

The information about the Chase Freedom Flex® card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.