Which 5% Rotating Bonus Category Card Is Right for Me?

Last updated Feb. 9, 2025 by Charles Zemub

Credit cards with rotating 5% bonus categories are an attractive option for many consumers looking to maximize their rewards on everyday purchases. These cards offer 5% cash back or equivalent points on spending categories that change every quarter, allowing cardholders to earn significant rewards if they take full advantage of these categories. However, with several options on the market, choosing the right card can be challenging. This article will explore various 5% rotating bonus category cards, their features, and factors to consider when selecting the card that best suits your needs.

Understanding Rotating Bonus Category Cards

Credit cards with rotating bonus categories typically offer 5% cash back on a set of categories that change every three months. Common categories may include grocery stores, gas stations, restaurants, or online shopping. By activating these offers each quarter, cardholders can earn elevated rewards in the select categories, although rewards may cap at a certain spending limit.

These cards often provide 1% cash back on all other purchases and may have additional benefits such as zero annual fees or introductory offers. It’s essential to understand the details of each card, including its reward programs, activation requirements, and spending limits.

Popular 5% Rotating Bonus Category Cards

1. Chase Freedom Flex℠

   The Chase Freedom Flex℠ is one of the most popular rotating category cards, offering 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter. In addition to rotating categories, this card provides 5% on travel purchased through Chase, 3% on dining and drugstore purchases, and 1% on all other purchases. There’s no annual fee, and new cardholders can often benefit from an introductory bonus.

2. Discover it® Cash Back

   Discover it® Cash Back is another leading choice for those seeking a 5% rotating bonus category card. The card offers 5% cash back on everyday purchases at different places each quarter, such as Amazon, grocery stores, and gas stations, up to a quarterly maximum, then 1%. Discover matches all the cash back earned at the end of the first year for new cardholders. Importantly, this card also has no annual fee.

3. Citi® Dividend Card

   The Citi® Dividend Card offers 5% cash back on purchases at enrolled rotating categories up to a limit each quarter. Unlike other similar cards, Citi sets an annual cap for these bonus rewards. Additionally, the Citi® Dividend Card has no annual fee and provides city-specific rewards, offering more localized options for earning bonuses.

4. U.S. Bank Cash+® Visa Signature® Card

   The U.S. Bank Cash+® Visa Signature® Card allows cardholders to choose their 5% and 2% cash back categories each quarter. It offers 5% cash back on two categories of choice on up to $2,000 in combined purchases each quarter. This card provides flexibility, allowing cardholders to align bonus categories with their spending habits more accurately.

5. PNC Cash Rewards® Visa® Credit Card

   The PNC Cash Rewards® Visa® Credit Card is known for offering 4% cash back on gas and 3% on dining, among other rewards. Although it doesn’t follow the typical rotating category structure, it’s worth mentioning because of its distinctive rewards that differ slightly but can still fit the preferences of certain shoppers.

How to Choose the Right Card for You

When deciding which 5% rotating bonus category card is right for you, consider the following factors:

Spending Habits

Evaluate your spending habits over recent months to identify where you spend the most. If you consistently buy groceries or dine out, selecting a card with these categories could maximize your rewards potential.

Category Interest

Research the bonus categories each card offers throughout the year. Choose a card whose rotating categories consistently align with your purchase interests.

Annual Fee

While many rotating bonus cards have no annual fees, some may require one. Calculate your potential returns against the cost of any card fees.

First-Year Benefits

Look for introductory bonuses common with these cards, such as match offers or extra points, which can add extra value during the first year.

Reward Cap

Check each card’s quarterly bonus cap and ensure it matches your expected spending. Cards with higher caps may be more suitable for larger expenditures in eligible categories.

Additional Perks

Consider any additional benefits a card might offer, such as travel insurance, purchase protection, or discounts. These could lend extra value beyond rotating rewards.

FAQs

What are 5% rotating category credit cards?

These are credit cards that offer 5% cash back or equivalent points in specific categories that change every quarter. These cards often require activation each quarter to earn the bonus rates.

Do rotating bonus category cards have annual fees?

Most, but not all, 5% rotating category cards come with no annual fee. It’s crucial to verify this for each card you consider.

How do rotating categories work?

Card issuers typically release bonus categories in advance. Cardholders need to activate them each quarter to earn 5% rewards on purchases within these categories, up to a specified limit.

What happens once I reach the bonus cap?

Once you reach the quarterly spending cap for a bonus category, additional purchases earn a standard 1% rewards rate until the next quarter.

Can I have multiple 5% rotating category cards?

Yes, holding multiple cards could help you leverage different bonus categories simultaneously, increasing your potential rewards and covering a broader range of spending habits.