8 Everyday Purchases You Want on a Cash-Back Card — And 8 You Probably Don't
Many credit cards come with cash-back rewards. These are often a small percentage of the amount spent that comes back to you.
For example, you might earn 1% cash back on everyday purchases. Or you might earn 3% whenever you purchase gas or groceries. Specific categories can earn more (or less), depending on the card. Some cards will swap out their cash-back categories, while others remain the same.
Using a cash-back card can be a great way to get a little back, but they’re not ideal for every purchase. Learn which categories you should — and shouldn’t — be using your card for.
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Everyday Purchases To Put on Your Cash-Back Card
Put simply, you should use a cash-back credit card for two main things:
Essentials — like groceries, gas, insurance premiums
Everyday things you’d be paying for anyway — like travel, online shopping (retail purchases), entertainment, food delivery, dining out/restaurants
The caveat? You should be able to pay off your balance in full each month.
“Putting normal expenses on a credit card, like food, fuel, doctor's visits and other similar expenses, always will make sense when you pay the credit card off in full,” said Ashley Morgan, attorney/owner specializing in bankruptcy at Ashley F. Morgan Law, PC.
It’s also wise to use your card in ways that maximize any rewards. Some cards have fixed rewards categories that never change. Others have rotating rewards, which means you could earn more cash back in specific categories at specific times.
An example of a fixed-rewards card is the American Express Blue Cash Everyday Card. As of April 22, 2026, it lets you earn the following amounts:
3% on groceries, gas and online retail purchases (up to $6,000 per year in purchases)
1% on groceries, gas and online retail purchases exceeding $6,000 per year
1% on other purchases
Another option is the CapitalOne Savor card, which earns:
3% cash back at grocery stores, entertainment and dining (excludes superstores like Target or Walmart)
5% cash back on Capital One Travel purchases (vacation rentals, hotels, rental cars)
8% cash back on Capital One Entertainment purchases
1% on other everyday purchases
“Find out what types of purchases help you earn double or triple cash back rewards and make sure to use the card for those purchases,” said Melanie Musson, a credit card finance expert with Quote.com. “The items that tend to get higher rewards are also the items that could be considered necessities. If you have regular expenses that you budget for, you should put those items on your cash-back card.”
Purchases Where Cash-Back Rewards Often Backfire
Using a cash-back card doesn’t make sense if the cost outweighs the rewards or if the expense itself comes with its own fees. This includes processing fees and transactions that code as a cash advance. Things to generally avoid charging your card with may include:
Mortgage payment
Rent payment
Car payment
Taxes
Utility payments
Cell phone
Internet
Student loan
“Before using your credit card to pay for an expense, you want to check if there is an additional fee,” said Morgan. “Using your credit card, when it does not cost any money, is a great way to earn points. But, if there is a fee, then it often weighs [against] your benefit.”
There may still be cases where these purchases make sense, but you'll have to do some math.
Tips To Avoid Overspending
Review your card terms to find out which areas earn the most cash-back rewards and prioritize using it for those categories. Keep an eye out for any rotating categories. And if your card has the option to choose your own categories, do so based on what you normally pay for anyway.
Whatever else, don’t charge your credit card with more than you can afford. The average credit card’s APR is 22.8%. If you’re not paying it off before interest accrues, you could be losing out on any rewards.
“Credit card interest is based on average daily balances. So as you continue to use the credit cards, even if you are paying them, the amount of interest you are paying increases,” said Morgan.
Morgan also suggested making sure your transactions are charged as ordinary purchases, rather than cash advances. Cash advances often come with higher interest rates that also outweigh any benefits.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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