How to choose a credit card for everyday spending
Key takeaways
- Credit cards for everyday spending reward consumers for every purchase they make, and they often come with no annual fee.
- To 'get ahead' with rewards on everyday spending and bills, it's crucial to pay your credit card bill in full each month so you can avoid interest charges.
- Some of the top credit cards for everyday purchases include the Wells Fargo Active Cash® Card, Blue Cash Preferred® Card from American Express, Discover it® Cash Back and Chase Freedom Flex℠*.
What credit card do you use for your day-to-day purchases? Whether you’ve thought about it or not, you probably have an everyday spending card — that is, a card you automatically reach for every time you complete an in-store checkout or make an online purchase. Tools like digital wallets make this process even easier by allowing you to select a single credit card as your default card. In any case, your everyday card should come with rewards that make its everyday use pay off over time.
But, how do you choose the best everyday card for maximizing the rewards you earn? Read on to discover a short list of the best credit cards for daily use. We’ve also included some tips for picking an everyday card and getting the most out of your rewards by combining an everyday spending card with a specialized credit card.
How to choose a credit card for daily spending
Selecting the best credit card for day-to-day use comes down to a matter of your spending habits and personal preferences. With a variety of cards to choose from, you are sure to find a card that meets your personal goals and needs.
Consider the following tips to find the ideal card for everyday spending and bills:
- Look for cards with bonus rewards in your top spending categories. If you spend a lot of money each month on groceries or dining, cards that offer bonus rewards at restaurants or groceries may be a good choice for daily use. Earning a higher percentage of cash back on these purchases could help you earn hundreds of dollars more in cash back every year.
- Consider cards with rotating bonus categories. If you’re hoping to maximize your cash back earnings and your spending is more varied, a card that offers bonus cash back in rotating categories may be the best credit card for daily use. These rotating bonus categories often earn up to 5 percent cash back on things like streaming services, gas stations and drug store purchases.
- Compare flat-rate rewards cards, too. A flat-rate cash back card can also be a great tool for everyday spending, especially if you are concerned about simplicity. These cards offer an easy to understand flat cash back rate on all purchases. With a card like this, you can earn a solid level of cash back on every purchase without worrying about any bonus categories.
- Decide if you want travel rewards instead. On the other hand, if you love to travel a cash back card may not be the best fit for your everyday spending. Using a travel rewards credit card or airline credit card instead can help you earn points and miles you can redeem for flights, hotel stays and more. This type of card could help you save big money on your next trip.
Should I get a credit card for everyday purchases?
When considering your best credit card for daily use, you first want to determine which type of reward card benefits you the most. If you’re trying to stock up on points to cover the cost of a big trip, you should put your day-to-day shopping on a travel credit card or an airline credit card. That way, you’ll have the opportunity to earn rewards you can redeem toward your next vacation. Plus, you might even earn a sign-up bonus that can significantly increase your total points or miles.
Or, you may prefer earning rewards that go straight to your budget’s bottom line. Many prefer using a more flexible rewards credit card for everyday expenses, such as a flat-rate cash back credit card that earns at least 1.5 percent cash back on every purchase. While travel credit cards often reserve their best rewards for purchases related to travel, flat-rate cash back cards give you the same percentage of cash back no matter what you buy. Then, you can redeem that cash for everything from statement credits to Amazon purchases.
After evaluating your spending habits, you may realize most of your day-to-day expenses fall into a single shopping category — like groceries, gas or online shopping. If so, you might want to consider a card that specifically rewards that type of spending. Use our guides to the best credit cards for groceries, the best credit cards for gas and the best credit cards for shopping online to help you choose the best credit card for day-to-day use.
Need more help choosing a credit card? Check out our Credit Card Spender Type Tool where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.
Comparing the top credit cards for everyday spending
| Card | Rewards | Welcome offer |
|---|---|---|
| Wells Fargo Active Cash® Card | Unlimited 2% cash rewards on purchases | $200 cash rewards bonus after spending $500 in purchases within first 3 months |
| Blue Cash Preferred® Card from American Express | 6% cash back at U.S. supermarkets (up to $6,000 spent per year, then 1%), and on select U.S. streaming subscriptions; 3% back on eligible transit and at U.S. gas stations; 1% on other purchases | $250 statement credit after you spend $3,000 in purchases within first 6 months |
| Discover it® Cash Back | 5% cash back on up to $1,500 spent in categories that rotate quarterly, then 1% (activation required); 1% on other purchases | Discover will match all the cash back new cardholders earn at the end of their first year |
| Chase Freedom Flex℠ | 5% cash back on up to $1,500 spent in categories that rotate quarterly, then 1% (activation required); 1% on other purchases | $200 bonus after spending $500 within first 3 months |
There are several factors to consider when selecting the top credit card for everyday spending. Not only is the rewards potential a vital consideration, but so is a card’s annual fee. Plus, if your goal is to maximize potential rewards, you’ll want to meet your card’s minimum spending requirement to earn welcome offers or sign-up bonuses. Keep in mind these are usually only available for brand-new cardholders.
A closer look at the best credit cards for everyday spending
What’s the best credit card for everyday spending? It depends. Many of today’s best credit cards could be excellent everyday spending cards, depending on where your money goes every month. If you’re looking for some tips on choosing a credit card, here are four of our favorite everyday spending cards for you to consider.
Wells Fargo Active Cash® Card
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The Wells Fargo Active Cash® Card offers unlimited 2 percent cash rewards on purchases. This makes it one of the best credit cards for everyday spending, hands down. Plus, you don’t have to keep up with any promotions, activations or bonus categories to maximize earnings. It has no annual fee, and new cardholders can earn a $200 cash rewards bonus after spending $500 in the first 3 months.
The Wells Fargo Active Cash is designed for people with good or excellent credit. So if you’re still working on building your credit score, you might consider a card with less restrictive requirements for eligibility — like the Capital One QuicksilverOne Cash Rewards Credit Card. This card comes with a $39 annual fee but offers 5 percent cash back on hotels and rental cars booked through Capital One Travel. It also offers 1.5 percent cash back on all other purchases, making it an excellent starter credit card.
Blue Cash Preferred® Card from American Express
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The Blue Cash Preferred® Card from American Express is one of our favorite everyday spending cards for families who do a lot of grocery shopping. Cardholders earn:
- 6 percent cash back on U.S. supermarket purchases (for up to $6,000 in purchases per year, then 1 percent)
- 6 percent cash back on select U.S. streaming services
- 3 percent cash back on transit purchases (including taxis, rideshares, parking, tolls, trains and buses) and at U.S. gas stations
- 1 percent cash back on all other purchases
Plus, you can earn a $250 statement credit after making $3,000 in purchases on your new card within the first 6 months.
This card does come with an annual fee of $95 per year ($0 intro annual fee for the first year). However, savvy shoppers may find their cash back rewards quickly outpace the card’s annual fee — especially once you do the math and determine that it only takes about $1,600 in grocery purchases to earn $95 in cash back rewards.
Discover it® Cash Back
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The Discover it® Cash Back card is a rotating bonus category credit card, offering 5 percent cash back on categories that rotate every quarter for up to $1,500 in purchases, which then drops to 1 percent (activation required), and an unlimited 1 percent cash back on other purchases.
Some people love the idea of cash back bonuses that change every quarter. Other people are concerned that they won’t be able to take advantage of everything the Discover it® Cash Back card has to offer.
Can a rotating bonus category card still be one of the best credit cards for everyday spending? We think so. Discover’s cash back calendar is packed with bonus categories that should appeal to most shoppers — groceries, restaurants, gas stations and more. New Discover cardholders can also take advantage of Discover’s Cashback Match program, which matches all the cash back rewards you earn during your first year. Discover it Cash Back also comes without an annual fee, so it doesn’t cost you anything up front to carry the card.
If you’re looking for an everyday spending card that offers top rewards on popular spending categories, Discover it Cash Back card should be at the top of your list.
Chase Freedom Flex®
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The Chase Freedom Flex℠* is a smart choice for someone who wants to take advantage of a welcome bonus offer but wants to avoid too much complexity or a high spending threshold. Cardholders who spend $500 within the first 3 months after account opening can earn a $200 welcome bonus. The $500 spending requirement is one of the smallest out there and can be easily achieved through routine purchases for gas, groceries and other necessities.
However, the welcome bonus isn’t the only thing to like about the card. For starters, you have plenty of opportunities to earn up to 5 percent cash back on up to $1,500 of purchases in activated bonus categories each quarter (after you reach this level, you earn 1 percent). Lyft rides (through March 2025) and Chase Travel purchases also earn 5 percent cash back. Additionally, you earn 3 percent cash back on drugstore and dining purchases — including restaurants, takeout and eligible delivery services — and 1 percent for all other purchases, all of which are ideal categories for everyday spenders.
The bottom line
How do you choose the best credit card for everyday spending? It all comes down to where your money goes and what you hope to get out of your purchases.
If you want to earn the same cash back rate on every purchase, a top cash back card may be the best everyday spending card for you. On the other hand, if most of your budget goes toward gas and groceries, credit cards offering higher rewards on those purchases could be a better fit. Or, if you’re planning a vacation, using a travel credit card every time you shop could help you save big on your next trip.
Information about the Chase Freedom Flex℠ has been collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.
Frequently asked questions (FAQs) about everyday spending credit cards
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Everyday spending cards are great on their own, but they’re even better when combined with a specialized spending card. For example, suppose you have a flat-rate cash back card and an airline credit card. In that case, you can maximize your credit card rewards by putting the majority of your day-to-day spending on your everyday spending card while putting all of your airline and travel purchases on your airline credit card.
Not only will you earn both cash back and miles, but you’ll also be able to take advantage of the other perks that come with the top airline credit cards — including elite membership status, annual airline credits, companion passes and more.
How do you know which specialized credit card to choose? Consider whether there is one category of spending that takes up a large percentage of your budget. Combining an everyday spending card with a store credit card, for example, could save you a lot of money every time you shop at your favorite retailer. Some people pair an everyday spending card with a travel, airline or hotel credit card to get the most out of every purchase, whether at home or on vacation.
Knowing where your money goes and where you’d like to earn the most rewards will help you choose the credit card combination that works best for you. -
The best credit cards for everyday spending include the Wells Fargo Active Cash® Card, the Blue Cash Preferred® Card from American Express, the Discover it® Cash Back card and the Chase Freedom Flex℠*.
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Consider rewards rates, intro APR offers, annual fees and benefits before you choose a card for everyday spending.
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You can usually avoid interest on credit card purchases by paying your entire statement balance in full after every billing period.
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Most credit cards come with $0 liability policies, making them exceptionally safe for in-person and online purchases. Federal law also limits credit card liability to a maximum of $50 for fraudulent purchases.
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American Express may offer to waive or reduce an annual fee in order to keep you as a customer. The issuer may also offer specific points bonus offers if you keep your card open and meet a new spending requirement on the card.
