Researches points out the average american has an amount of 4 credit cards in their wallet. You may not have 4, but we’re pretty sure you have at least one, and if that one is not a cash back reward type of card, let us tell you something: you’re wasting time. And money.

Every serious credit card has this strategy cause it’s a way of making the cardholders understand better their expenses, aligning it with their financial goals and taking a better looK at their credit score. It’s a way of making people spend smartly.

There are three different types of credit card reward programs, and it’s important for you to understand before applying for one:

FLAT-RATE: This one rewards you with a fixed percentage on your purchase, doesn’t matter how much you’re spending or its category. An average credit card cashes back something around 1.5% on each purchase, for example.

TIERED: It offers different rates depending on the history, but not on the category. For example, some credit cards can offer a 3% on each supermarket purchase until $6.000,00 spent per year, but above that it would give you only 1%.

ROTATING CATEGORIES: This one is quite interesting and tricky. It offers a flat rate on every purchase, but it also gives you a bonus cash back on specific categories that change every quarter. To receive this bonus, you must activate it. Some credit cards offer even 5% on $1.500,00 spent on the selected categories and 1% of flat rate, so this one can be a great deal too.

Now that you understand better about the categories, we’re gonna select one credit card of each to help you make the best choice!

Category: Flat-Rate

First of all, it doesn’t have an annual fee, and we’re only big fans of cards like that. Its rate is a 1.5% on every purchase you make, but it also has some extras that might make you happy as well: it offers protection for your cellphone against eligible damage and theft if you pay its bill with their card, and you can earn $200 on $1.000,00 spent in the first three months.

You can also get 1.8% of cash back if you use your mobile wallet, like Apple Pay or Google Pay, during the first year. You can redeem your cash back reward on every Wells Fargo ATM, and this card is available only if you have good to excellent credit.

Category: Tiered

What can we say? This is definitely one of our favorites. You can choose which category you’ll be receiving 3% of cash back, like: online shopping, dining, gas, home improvements and furnishing, travel. Besides that, you also receive 2% on purchases from grocery stores and wholesale clubs and 1% on every other purchase. If you feel like, you can also change your category for the 3% using your mobile and following the rules.

It has some great bonus like earning $150 after spending $500 in the first three months, and if you happen to be a Bank of America Preferred Rewards Client, you can earn 25% to 75% on each purchase depending on your tier. If it’s not nice, what is it? Just so you know: your credit must be good to excellent.

Oh, also, if it didn’t make your mind yet: it doesn’t have annual fee. No you are convinced, right?

Category: Rotating Category

This one offers you 1% back on all your purchases and 5% back on up to $1.500,00 spent on the categories chosen quarterly. If you get strategic, it can mean a big amount of money for you. Also, you can receive $150 back spending $500 on the first three months. Your credit must be good to excellent to get this card, and to top it off: no annual fee.

These would be our go-to cash back credit cards, and we hope you make the best choice for your wallet and wealth. Don’t forget: the whole reason is to make you spend money more wisely.

Do you have any recommendations too? We would love to hear it!