Every cashback rewards credit card has its own specific earn rates. One might offer 2% cashback for groceries, while another earns you 0.5% cashback for the same category. The same goes for the spending limits. Some credit cards limit how much you can earn at a specific rate. In general, the more you spend with your cashback rewards credit card, the more you earn.

The credit card that will maximize your cashback rewards has high earn rates in categories you make the most purchases. That's why it's essential to understand what you spend most of your money on. While it's understandable to want to earn high rewards, the most lucrative credit card may not be the best for you. For instance, you may get a cashback rewards credit card that earns 4% cashback on groceries, but the annual fee is $199. Make sure to calculate whether you’ll make up the annual fee with your purchases.

There are three types of cashback rewards credit cards:

• Category: Earns you cashback for specific categories, like bill payments and gas.
• Flat-rate: Earns you a fixed cashback rate on every purchase you make.
• Flexile bonus: This allows you to choose your cashback categories.