STEP 4
Start Racking Up Cash Rewards
Come the first of the month, start paying
for everyday expenses with your cash
back rewards card while continuing to
ensure you’re not overspending.
Paying your bill in full by the due date
means avoiding interest and giving
yourself access to your full credit line
for the new month ahead.
Pay Off Your Balance And Start Over
STEP 5
Thinking strategically about how to use accumulated rewards means putting them to work toward important goals, such as paying down debt.
Use Cash Back Rewards
With Intention
STEP 6
Americans who pay
their credit card balance
in full every month
56%
TD Bank survey, Feb. 2022
DID YOU
KNOW?
Americans who use
a mobile wallet.
Why? Users cited
speed most of all.
51%
TD Bank survey, Feb. 2022
DID YOU
KNOW?
Americans who
have let credit card rewards expire
22%
TD Bank survey, Feb. 2022
DID YOU
KNOW?
Which Cash Back Rewards
Card Should You Choose?
Whether you’re a fan of bonus categories or the predictability of flat-rate rewards, there’s a card out there for you. Here, Paramita Pal, head of U.S. bankcard product management and external acquisition at TD Bank, explains the difference between the two types of cash back rewards cards.
Paramita Pal
TD Bank
Flat-Rate Rewards Cards
A flat-rate card is a smart choice if you want your credit card and checking accounts at the same bank. The TD Double Up Credit Card, for example, offers 1% Cash Back on purchases and an extra 1% Cash Back to cardholders with an eligible TD Bank Deposit Account. Consolidating banking and borrowing at one bank may provide other perks, Pal said.
“There is the convenience of online setup,” Pal said. “If you have online banking with TD Bank, you just add your cards to it. It’s much easier.”
Those who want to capitalize on certain kinds of spending categories—like dining out—could choose a bonus category card. The TD Cash Credit Card, for example, gives cardholders 3% Cash Back on dining (including takeout and delivery), 2% Cash Back on groceries (excluding superstores) and 1% Cash Back on other purchases.
With bonus categories, rewards accumulate more quickly and can become meaningful over time. For instance, someone who spends $300 a month on dining would earn $108 Cash Back at the end of the year just by charging all those meals to a TD Cash Credit Card. That’s like a free dinner for two in Cash Back.
Bonus Category Cards
When considering any card, consumers should also check if there’s an annual fee or welcome rewards just for signing up. The TD Double Up Credit Card, for instance, offers $100 Cash Back in the form of a statement credit when you spend at least $1,000 in the first 90 days after opening your account, and the TD Cash Credit Card offers $150 Cash Back when you spend at least $500 in the first 90 days from account opening.
While you will need to weigh several factors to find the cash back card that’s right for you, Pal said it’s really all about finding the one that best complements your life.
“There is not one cookie-cutter approach that suits everyone,” she said.
Your Card On Your Terms