What could you do with an extra $1,000? Pay down debt? Add to your emergency fund? Invest in broad-based index funds?
Whatever your plans may be, it couldn’t be simpler to get started today!
ChooseFI’s Simple 3 Card $1,000 Game Plan
The barrier to entry with this strategy is low and the rewards are significant!
If you have $7,500 of expenses you can put on a credit card (and pay off on time and in full every month so $0 in interest of course!) over the 12 months, you will earn more than $1,000 in cash back (and it could be much more depending on category bonuses). That’s like getting a 16% rebate on $7,500 of normal spending that you were going to spend anyway!
That’s a massive win on your path to FI.
The general strategy is this:
- Go for cards that offer the highest welcome bonuses, especially ones with the most generous category bonuses.
- Only use money you will spend to meet your everyday living expenses or planned purchases. Don’t spend extra money just for the sake of earning a bonus!
- Meet the minimum spend requirement, preferably with expenses made in the highest cash back earning categories.
- Pay your credit cards off on time and in full every month.
It couldn’t be easier! Wondering about which cards to open? No worries, we’ve got you covered. With these three cards, you can easily earn more than $1,000 within a year.
Quick Steps to $1,000+ in Cash Back
- Open the Chase Sapphire Preferred® Card, spend $4,000 in purchases in the first three months and earn $600 (this card does have a $95 annual fee). (Plus, get up to $300 in statement credits on Chase Travel purchases within your first year.)
- Next, open the Chase Freedom Flex®, and earn $150 on a $500 spend within the first 3 months. $0 annual fee.
- Then, open the Blue Cash Preferred® Card from American Express, spend $3,000 in the first 6 months and earn $250 in cash back. Also: Earn 6% on up to $6,000 at US supermarkets (then 1%), and select US streaming services each year. There is a $0 intro annual fee for the first year, then $95. (See Rates and Fees)
Important Note: The information for the Chase Freedom Flex℠ has been collected independently by ChooseFI. The product details on this page have not been reviewed or provided by the bank advertiser.
Cash Back Card #1 Chase Sapphire Preferred® Card
Look no further than the for the biggest bonus and increased earning opportunities in a few targeted spending categories.
This is also our #1 travel rewards credit card, but if travel isn’t your thing, you can redeem the Chase Ultimate Rewards® points you earn for cash back, making this the best possible way to get started no matter what option you choose!
New To Travel Rewards? This Card Is For You!
Ready to unlock a world of free travel? Start with the Chase Sapphire Preferred® Card.
Details: $95 annual fee | Get up to $1,050 in Chase Travel℠ value.
New cardmembers will earn a one-time 60,000 point bonus after spending $4,000 on purchases within the first three months from account opening. Cardmembers can redeem points for a statement credit, check, or direct deposit with a value of 1 cent per point making the 60,000 Chase Ultimate Rewards® point bonus worth $600 in cash back. A $95 annual fee applies.
The Chase Sapphire Preferred® Card earns you Chase Ultimate Rewards® points. You earn 1 cent per point to redeem for cash back or 1.25 cents per point to redeem for travel through Chase Travel℠.
Total Cash Back earned from this card: $600
Learn how to apply for the Chase Sapphire Preferred® Card here.
#2 Chase Freedom Flex®
Steps To Earn up to $150 With The Chase Freedom Flex®
The Chase Freedom Flex® offers a $150 bonus after spending $500 in purchases within the first three months from account opening. But wait, it gets better! This card also rewards you with 5% cash back on up to $1,500 in combined purchases each quarter on bonus categories you activate. Plus, cardholders will also earn 5% back on Chase travel purchased through Chase Travel℠, 3% on dining and drugstores, and 1% everywhere else–all with no annual fee!
Total earned from this card: $150 bonus
Total earned so far: $750.
#3 Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express earns a nice welcome offer and has solid cash back category bonuses (See Rates and Fees).
This card earns $250 in cash back in the form of Reward Dollars that may be redeemed as a statement credit or at Amazon.com checkout after spending $3,000 in eligible purchases within the first 6 months of account opening. $0 intro annual fee for the first year, then $95.
Steps to Earn $250 With Blue Cash Preferred® Card from American Express
Regular spending with the Blue Cash Preferred® Card from American Express earns 1%, but this card really shines when it comes to US supermarkets and US streaming subscriptions, earning a nice 6% cash back for both categories (on up to $6,000 in purchases at US supermarkets per year, then 1%). Other categories yielding a 3% cash back include US gas stations, rideshares, and transit purchases. Terms apply.
Total earned from this card: $250 bonus
Pro Tip: Use this card for groceries!
Total potentially earned from bonuses only with all three cards: $600 + $150 + $250 = $1,000
Learn how to apply for the Blue Cash Preferred® Card from American Express here.
Congratulations! You’ve earned up to $1,000 using cash back cards on purchases you would make anyway!
Cash Back for the Long-Term with CashFreely
Zac Hood, a ChooseFI community member and founder of ‘Travel Freely,’ recently created a site & app called ‘CashFreely’ to help you maximize cash back credit card rewards over the long term.
We tested it out and it’s the easiest way to learn how to maximize your cash back without getting bogged down in needless complexity.
Zac and the team give you step-by-step directions to maximize your signup bonuses and ongoing category spending bonuses (like restaurants, supermarkets, gas, dining, etc.)
This is a completely FREE service and here are the links to get started:
Here’s feedback on CashFreely from Ben, one of our FI Weekly readers:
I’ve listened to several podcasts about travel rewards but every time I looked into it in more detail, I just got overwhelmed with all the different card choices, airline choices, hotel choices, etc. I just gave up and settled for earning my 1.5% cashback on every purchase. But earlier this week, you were mentioned in Brad Barrett’s weekly ChooseFI email, I decided to check out your site (I had no intentions of signing up). The first thing that pulled me in was the simplistic design of the website – I get overwhelmed with lots and lots of words and links. So once I actually created an account and added my current cards, it just seemed like the steps were simple and to the point. Well, an hour later, I had made an account for CashFreely AND TravelFreely and read through all the steps. Oh and I also applied for the Chase Sapphire Preferred Card and that should be arriving in the next few days. I’m super excited to get this journey started. Your simplistic approach is what pulled me in. So thank you 🙂
Top Travel Rewards Offers
Top Travel Card
Details: $95 annual fee | Get up to $1,050 in Chase Travel℠ value.
Most Flexible Travel Card
Details: $95 annual fee | 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening
Best Card for Side Hustlers and Business Owners
Details: $95 annual fee | Earn 90,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.
To see the rates and fees for the American Express card featured, please visit the following link: Blue Cash Preferred® Card from American Express: See Rates and Fees.
