US · Credit card rewards
US credit card rewards: cash back and welcome bonuses
Cash back on planned spending and a welcome bonus are two ways to make a US credit card work harder. The useful number is what remains after fees and interest.
Sources checked
The short version
Choose rewards for purchases already in your budget. Verify bonus eligibility before applying, and compare ongoing value without a new bonus.
- 01
Planned spending
Earn on purchases you already need.
- 02
Eligible bonus
Check exclusions and the exact deadline.
- 03
Full payment
Protect your purchase grace period.
Verified card examples: read the reward rules
Sources checked: 2026-10-15 · USD
| Card example | Annual fee | Regular rewards |
|---|---|---|
 ChaseFreedom Unlimited | Annual feeUSD 0 | 1.5% on other eligible purchases; 3% on dining and drugstores; 5% on travel purchased through Chase Travel. Category rules apply. [1] |
 Wells FargoActive Cash | Annual feeUSD 0 | Unlimited 2% cash rewards on eligible net purchases, meaning purchases less returns and credits. Excluded transactions earn no rewards. [2] |
1. Match everyday purchases to the earn rate
A flat rate can be easier to track; category rewards may pay more on qualifying spending. Compare your actual mix of purchases. For Chase, 3% dining is the total rate, not an extra 3% added to the 1.5% base. Redeem at the cash value you actually receive.
2. Meet a welcome bonus with spending already planned
Offer checked October 15, 2026: Chase Freedom Unlimited offers 20,000 bonus points redeemable for USD 200 cash back after USD 500 in eligible purchases in the first 3 months from account opening. It excludes current holders of this card and previous holders who received its new-cardmember bonus within the past 24 months.
The account must be open and not in default at fulfillment. Allow 6–8 weeks after qualifying for points to post. Offers vary by application channel and can change. Check the actual offer and approval terms before applying.
Official sources: [1]
Check gift-card and cash-equivalent exclusions
Do not treat gift-card resale as guaranteed qualifying spend. Wells Fargo Active Cash explicitly excludes pre-paid gift cards and other cash equivalents from both rewards and its welcome-offer spending. Chase also excludes cash-like transactions, cash advances and balance transfers. Buying more than you need can cost more than the bonus.
Separate the first-year boost from ongoing value
Regular rewards + a separate welcome bonus − annual fees − interest − other charges = value retained. When you qualify for a purchase grace period, paying the full statement balance by the due date can avoid purchase interest. Cash advances generally do not get that grace period.
Official sources: [3]
Illustrative example · USD
Fictional scenario: USD 12,000 in eligible purchases each year, 2% cash back and a separate USD 200 bonus paid in year one.
- First year: bonus included
- USD 440
- USD 12,000 × 2% + USD 200
- Next year: no new bonus
- USD 240
- USD 12,000 × 2%
One-time difference: USD 200
Method illustration, not either card’s quoted return. Assumes all bonus conditions are met, no returns or extra spending, and zero annual fee, interest and other charges. Rates and spending stay unchanged; the bonus is added only once and is separate from regular rewards. Deduct actual costs.
Before you move your money
- Read the current offer, application channel and prior-cardholder restrictions.
- Count eligible net purchases that post within the exact deadline.
- Compare the next year without a bonus; subtract fees, interest and unnecessary spending.
Explore US credit cards
Compare published cards and their verification dates. Confirm fees, interest, eligibility and the current offer with the issuer. Examples here may not all be listed.
Browse US cardsCommon questions
Is a USD 200 bonus available whenever I reopen the Chase card?
No. The checked offer excludes current cardholders and previous holders who received this card’s new-cardmember bonus within the past 24 months. Approval and other offer conditions still apply.
Do pre-paid gift cards count toward Active Cash rewards?
The checked Wells Fargo terms exclude pre-paid gift cards and other cash equivalents from rewards and welcome-offer qualifying purchases.
Does a cash back statement credit replace my required payment?
Follow the payment amount and due date on your statement. A reward redemption is not a reason to skip a required payment; check your issuer’s payment rules.
Go deeper
Official sources
Checked on the date shown above. Fees, offers and terms can change.
How this article was made
Published by SwitchaBank. Written and translated with AI assistance and checked against the linked official sources. It has not received independent financial-expert review. General information, not personal financial advice.
SwitchaBank receives no compensation from the institutions discussed in this article.
Topic inspiration: Banksalad’s card-rewards explainer
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