Path A
Cashback Credit Card Strategy
No points spreadsheets. No airline restrictions. Just a percentage back on every purchase — automatically, in cash. Here's how to maximize it.
The New Best Cashback Card
The Robinhood Gold Card earns 3% unlimited cash back on everything — the highest flat rate available. The catch: rewards deposit into your Robinhood brokerage account, not your bank. For anyone already investing on Robinhood, this is a feature, not a bug — your spending automatically funds your portfolio. If you don't want to touch Robinhood, Citi Double Cash at 2% is the cleanest alternative.
The Core Principle
The average American earns 1% or less on their credit card spending. Moving to a 2% flat-rate card is the single easiest financial optimization available — no lifestyle change required.
Beyond 2%, you can stack category cards for specific spend types. But the complexity cost matters — a strategy you don't follow is worse than a simple one you do.
The Cards Worth Considering
Robinhood Gold Card
Top PickAnnual fee
$0 card fee (requires $5/mo Gold)
Earn rate
3% on everything, unlimited
Best for
Highest unlimited flat-rate cashback available — 50% more than standard 2% cards
Citi Double Cash
Annual fee
$0
Earn rate
2% on everything
Best for
Best no-strings-attached 2% card — statement credit, no account requirements
Wells Fargo Active Cash
Annual fee
$0
Earn rate
2% on everything
Best for
Same 2% as Double Cash but with a $200 sign-up bonus — good alternative
Chase Freedom Unlimited
Annual fee
$0
Earn rate
3% dining & drugstores, 1.5% everything else
Best for
Pair with a Sapphire card to convert points, or use standalone for dining
Discover it Cash Back
Annual fee
$0
Earn rate
5% on rotating categories (up to $1,500/quarter), 1% base
Best for
First year doubles all cashback — strong if you track the categories
Blue Cash Preferred (Amex)
Annual fee
$95
Earn rate
6% groceries, 6% streaming, 3% gas & transit, 1% other
Best for
High grocery + streaming spend. Pays off at ~$1,600+/year in those categories
Robinhood Gold Card
3% unlimited cash back on everything — the highest flat rate available, deposited straight into your Robinhood brokerage account.
The Strategies
The 3% Method
Cards
How it works
Put all spending on the Robinhood Gold Card and earn 3% on everything. Cash back automatically deposits to your Robinhood brokerage account — built-in forced investing.
Annual example
$3,000/month spend × 3% = $1,080/year − $60 Gold subscription = $1,020 net. Same spend on a 2% card = $720. You're ahead $300/year — and it's already invested.
The One-Card Method (no account requirement)
Cards
How it works
Put everything on one 2% card. Simple, no thinking, no tracking. Cash back as a statement credit — no brokerage account needed.
Annual example
$3,000/month spend × 2% = $720/year. No effort, no optimization needed.
The Two-Card Stack
Cards
How it works
Use Discover for the rotating 5% categories each quarter (gas, Amazon, restaurants, etc.). Default to Double Cash for everything else.
Annual example
Max Discover 5% quarterly cap ($1,500 × 4 = $6,000/year at 5% = $300) + remaining spend at 2% on Double Cash.
The Category Stack
Cards
How it works
Use Amex Blue Cash for 6% on groceries and streaming, 3% on gas. Use Double Cash for all other spend at 2%.
Annual example
$800/month groceries × 6% = $576/year. Streaming at 6%. Pay $95 fee = net well over $500/year if grocery spend is high.
Citi Double Cash
2% flat on everything, $0 annual fee, statement credit — no brokerage account required.
What to Avoid
The Golden Rule
A rewards card only earns you money if you pay the statement balance in full every month. If you carry a balance, the interest will always outpace the rewards. Sort out the habit first, then optimize for rewards.
Is This the Right Path for You?
Pick cashback if…
- • You travel less than 2x per year
- • You hate managing point balances or expiration dates
- • You want guaranteed value with no redemption friction
- • You're just getting started with credit cards
Consider travel cards if…
- • You fly or stay in hotels regularly
- • You're willing to learn transfer partners
- • You spend heavily on dining, travel, or groceries
- • You've mastered cashback and want to level up
Set Up Your Foundation First
Credit cards are the final layer — start with your banking and investing stack.