American Express and Yahoo Finance present cash back strategies

Financial expert Stefanie O'Connell Rodriguez shares three smart cash back strategies to use with cash back credit cards. Presented by Yahoo Finance and paid for by American Express.

Video Transcript

- Hey, everyone. Let's talk about how you can maximize your money while spending money. I know, those two things don't typically go together. But it is possible to do both with a cash back credit card.

Instead of just cutting down on my spending in order to save money, I try to find as many ways as I can to maximize the spending I'm already doing. And one of my favorite tricks is using a cash back credit card. A cash back credit card rewards purchases in certain categories by turning a percentage of that spending into a statement credit. Pretty sweet, right?

But the key to maximizing your spending and rewards with cash back is to figure out exactly which card is right for you. So here are a few tips to help you pick. Understand your spending. Ask yourself, what's my spending style.

With cash back, it's important to take into consideration how each card's rewards fit into your unique spending style. For example, let's say you just moved into your first apartment. You've been cooking a lot at home or you love taking road trips.

Well, if you're looking for a low commitment way to get rewards for your everyday purchases, a card like the American Express Blue Cash everyday card could be the perfect fit. The Blue Cash everyday card has no annual fee and offers 3% cash back at US supermarkets on up to $6,000 per year in purchases. Then 1%.

You can also earn 2% at US gas stations and select department stores in the US, which means your wardrobe refresh and driving around town could turn into a new pair of sunglasses for your next road trip.

A card like this could be a great option for you if you want to start getting rewarded for the spending you're probably already doing. Now some back cards offer higher rewards in more categories, which can help you maximize your spending even more.

Do you find yourself always on the go? Or maybe you're like me and have all of the TV streaming subscriptions and love a fully stocked fridge? Well, in that case, a card like the American Express Blue Cash Preferred card could be the answer for you.

It has an annual fee, but gives you 6% cash back at US supermarkets on up to $6,000 per year in purchases. Then 1%. And it also gives you 6% back on select US streaming subscriptions. That's right. You can get rewarded for watching TV.

It also rewards 3% back on several transit purchases, like trains, tolls, parking, even ferries. So what if you like the idea of department store shopping and transit rewards? Compare welcome bonuses. If you're having trouble deciding, don't forget to check out the current welcome bonuses each card offers.

Some cards may waive their annual fee for a year or provide an incentive to get additional cash back if you spend enough within a set time period. If you have a big purchase you know is coming up, that welcome bonus could make an impact on your bottom line.

And last but not least, remember the basics. Yes. Fine print can seem overwhelming, but there are key factors that can help you make your decision. Are there annual fees? What does the membership agreement say? What is the interest rate?

Knowing the basics is essential before signing up and can help you pick the right back card for you. And hopefully with these tips, you'll feel empowered to find your perfect fit and start getting the cash back rewards you deserve.