Earning 3% cash back on everyday spending is the holy grail for credit card rewards—but these cards are surprisingly rare. They often come with restrictions like limited categories, annual caps, or temporary promotional periods. Knowing where to look and how to strategize can help you maximize rewards without falling into common traps.
Why 3% Cash Back Cards Are Rare
Most credit cards offer 1% to 2% cash back on general purchases. Cards advertising 3% back typically focus on specific categories such as dining, groceries, or gas. Many also impose spending caps, after which the rewards rate drops significantly.
Finding a card that consistently offers 3% back across broad categories with generous limits is a true gem.
Popular Options and Their Limitations
- Some mainstream cards offer 3% back only on rotating categories each quarter.
- Some cards offer 3% back in the first year, but later charge an annual fee or reduce the rewards rate.
- Certain cards require autopay enrollment or other conditions to access top-tier rewards.
A Unique 3% Cash Back Card Backed by Your Home Equity
One uncommon option is the Aven Credit Card, which leverages your home’s equity to provide superior rewards:
- 3% cash back on the first $10,000 spent annually with autopay.
- 2% cash back on all purchases after the $10,000 threshold.
- No annual fee, unlike many competitors.
- Uses home equity to offer lower interest rates alongside consumer rewards.
This card is ideal for homeowners with strong credit who want to earn cash back on large expenses such as home improvements, tuition, or medical bills.
Caution: Because the Aven credit card is secured by your home equity, it is crucial to pay off your balance in full each month. Carrying a balance could lead to high interest costs and, in the worst case, put your home at risk. Treat it responsibly like any home-backed credit product.
How I Use These Cards: A Personal Strategy
In my own lineup:
- Farmers card: 3% cash back on up to $10,000 spent each month during the first year. After that, the rate drops to 2.5% and an annual fee applies. I plan to cancel before fees kick in to avoid costs outweighing rewards.
- Robinhood Gold card: I’m on the waitlist and hope to benefit from its rewards and investment integration. You can read more about my Robinhood Gold strategy here.
- Aven card: Serves as both a bridge and backup, offering 3% cash back on the first $10,000 spent annually with autopay, and 2% afterward—without an annual fee. It’s versatile for ongoing rewards, especially tied to home-related expenses.
Final Tips for Finding and Using 3% Cash Back Cards
- Read the fine print on spending caps, category restrictions, and fees.
- Use autopay or meet other conditions to unlock top-tier rewards.
- Combine cards strategically to maximize 3% cash back across different spending types.
- Stay updated on new card offerings and fintech innovations like Aven.
Finding those rare gems that deliver consistent 3% cash back can be a game-changer for your finances. Cards like Aven innovate by combining traditional lending with modern rewards, expanding your options.
Ready to Apply?
Unlock the benefits of the Aven Credit Card using my invitation link:
Apply for the Aven Credit Card
New applicants who activate their card using this link will receive a $100 bonus. Applying through my invitation link also supports this blog at no additional cost to you. Thank you for your support!
Personal note: The bonus seems to arrive quickly – I applied last night using an invitation link and received the bonus this morning, even before receiving the physical card!