Dear Clever Credit,
I do most of my spending on resale platforms, mainly eBay, Poshmark and Depop. Right now, I get 5% cash back on online purchases with my debit card, but I want to start building credit while keeping similar perks.
I’ve been having trouble finding a credit card that offers anything close to 5% cash back. A lot of credit cards seem to only support real stores or use vague point systems, and it’s hard to tell what those points are actually worth from the sign-up page.
Signed,
eBay Bae
Dear Bae,
I totally get it. Cash back credit cards offer simplicity. You know what you’re getting with little math required (just the way I like it). Unfortunately, that means you have fewer options and even fewer meet your criteria.
Cash back credit cards notoriously don’t earn as much as points and miles credit cards, which is why you’ll see them usually cap their earnings at 2% or 3% cash back. There are a few exceptions — whether through limited promotional periods or rotating categories — but more often than not, you’re earning less than 5% cash back.
With that in mind, let’s take a look at some of your best options:
| Credit Card | Bank of America® Customized Cash Rewards credit card | Blue Cash Everyday® Card from American Express | PayPal Cashback Mastercard |
| Rewards Rate |
— 6% cash back in the category of your choice, which includes online shopping, for the first year — 2% cash back at grocery stores and wholesale clubs — 1% cash back on all other purchases |
— 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) — 3% cash back on U.S. online retail purchases (on up to $6,000 per year in purchases, then 1%) — 3% cash back at U.S. gas stations (on up to $6,000 per year in purchases, then 1%) |
— 3% cash back when you check out with PayPal — 1.5% cash back on all other purchases |
| Annual Fee | $0 | $0 See Rates & Fees | $0 |
| Additional Perks |
— Get a 25% to 75% rewards bonus with the Bank of America Preferred Rewards program |
— $84 Disney streaming credit |
— Theft protection |
It’s worth noting, however, that while the Bank of America Customized Cash card does earn 6% cash back, it’s only for the first year and there’s a quarterly limit. You can earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
[Read: Cash Back Credit Cards]
Cash Back Alternative
Now, if you’re open to it, you could consider the eBay Mastercard instead. While it does earn points instead of cash back, you can apply those points to eBay purchases.
The eBay Mastercard incentivizes you to spend on its site. Until you spend $1,000 on eBay purchases in a calendar year, you will earn three points per dollar. After spending $1,000, you’ll earn five points per dollar.
You can also earn two points per dollar spent on gas, restaurant and grocery purchases, and one point per dollar on all other purchases. The eBay Mastercard also doesn’t come with an annual fee.
[Read: Rewards Credit Cards]
Perks of a Credit Card
While there really isn’t a credit card that consistently earns that much cash back on online shopping, you’re getting other benefits from swapping a debit card for a credit card. Perks like credit reporting, fraud and identity theft prevention, and purchase protection could make up for the lower rewards.
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Clever Credit: What Credit Card Should You Use for eBay Purchases? originally appeared on usnews.com
