How to Maximize Cash Back on Subscription Services

To get the most out of this card, use it for travel and everyday purchases to maximize the bonus categories. Plus, use the annual hotel credit. In turn, the Chase Sapphire Preferred can be a valuable card that gets heavy use.

How to Choose the Best Streaming Credit Card for You

With so many choices to pick from, here's how to go about narrowing down the best streaming credit card for you.

Evaluate your personal streaming habits: You'll want to assess your personal streaming habits and use it to figure out which card could be the best fit. While US consumers subscribe to an average of four platforms, your media diet might be made up of more or less.

For example, if you are a devotee of major streaming platforms, consider a card that gives you monthly statement credit to go toward popular streaming services–think Netflix, Hulu, Spotify, Disney+, Max, Apple TV+, or Prime Video. Say, a $25 monthly statement credit equals $300 back in your pocket each year.

Or if you already subscribe to a few popular platforms, look for a card that offers monthly statement credit toward that specific service.

See how a card can fit into your financial goals. If a card features monthly or annual statement credit, bonus categories, or rotating toward streaming subscriptions, make sure they are a fit for your current digital entertainment needs and budget.

“You'll most likely spend more than you save,” adds Frank. Along the same lines, don't choose a card for credits or that feature bonus or rotating categories for platforms you don't use. "List your subscriptions and expenses first, then pick a card that matches them."

Run the numbers. In some cases, a lower-fee card, negotiating subscription plans directly with providers, sharing family memberships, or using ad-supported tiers may save more than a premium rewards card does, says Frank.

Consider a card with an annual fee only if the perks offset the costs. If you don't generally think you'll maximize the value from a cash back credit card with robust perks, then a no-annual-fee card might be a better fit.

Look at the rates and fees. As usual, it's a good idea to look at different types of APRs, such as the standard APR, the balance transfer APR, and the cash advance APR. You'll also want to check the late fees, returned payment fees, cash advance fees, foreign transaction fees, and balance transfer fees.

Ideally, you'll want to pay off your balance in full each month. But when you're juggling multiple financial responsibilities and money goals, that's not always possible. If you end up carrying a balance, it's important to know how carrying a balance will cost you in terms of interest fees.

Read the fine print. A lot of people overestimate streaming perks by focusing on the headline credit instead of the fine print, points out Frank. "Service restrictions, enrollment requirements, monthly caps, and annual fees can significantly reduce real value."

Look at the welcome bonus and other perks. If there's a generous welcome bonus, you might want to factor that into your decision-making process. Timing your spending with a big-ticket purchase or to pay taxes or an insurance bill can help you meet the minimum spend, and scoop up on the bonus reward.

To make the most out of your credit card, see if it's a card that is designed more for cash-back, or if it can be used toward travel rewards and balance transfers.

Maximizing Your Streaming Credit Card Rewards

A credit card's rewards are only as good when put to use. Focusing on your favorite TV subscription platforms is a great start, but mastering a broader strategy for getting the most out of your credit card rewards can help you save across your budget.

Here are our favorite tips to get the most out of their chosen card, beyond just paying for subscriptions....

Sync credits with subscriptions you already use. When you align credits with existing subscriptions your spending on streaming services won't balloon.

Put recurring subscriptions on your card that offer streaming rewards. Plus, set your payments on autopay, suggests Frank. "That way, credits trigger automatically. Because not all credits activate automatically, you'll also want to enroll in benefits right away."

Mind the rules. Check to see what the monthly cap is on these credits. Also, keep in mind that unused credits usually don’t roll over. Frank reminds, "If you won’t consistently use a monthly credit, a higher flat cash back rate may provide more value. This is especially true if you cancel subscriptions as soon as you stop using them."

Put statement credits toward your subscriptions. Whatever cash-back rewards you rack up can be spent on your digital entertainment spending. In turn, this can help you lower your bills.

Review subscriptions regularly. That way, you earn bonuses on services you actually use, says Frank. "Don't forget to cancel subscriptions when you aren't using them anymore," she insists.

Remember: cards with bonus streaming categories tend to deliver more value than flat-rate cards, especially when paired with limited-time or rotating promotions. So you'll also want to keep an eye out for changes in the perks on existing cards, or see what perks other cards have.

Other Credit Card Perks for Digital Entertainment

Besides bonus or rotating categories for streaming services, check to see if a credit card includes internet and streaming services as online shopping for an accelerated or bonus category.

For example, Bank of America's Customized Cash Rewards credit card offers 3% on your spending category of choice, which includes streaming services as part of "online shopping." That way, you can scoop up more rewards for these subscriptions.

You can also scour the "Featured Offers" in a credit card's app or search online to see what online shopping deals you can scoop up on streaming services.

There might be a one-time offer to rack up a chunk of points to sign up for a new platform. For example, if you sign up for a specific service, you can earn 400 points, and if you bundle certain streaming services, you can earn up to 3,700 points.

Beyond that, look for valuable perks such as zero liability on unauthorized purchases, purchase protection, and fraud protection and monitoring.

Stream On and Save

To help stave off increasing costs of subscription services, be strategic. Consider ways to earn the most cash-back points on your credit cards. Bonus or rotating categories that feature streaming perks can help you ramp up the rewards potential. And to help you save on these recurring costs, you use the rewards in the form of a statement credit to keep these services affordable.

With the right credit card, you can indulge in your favorite forms of entertainment while earning valuable rewards. Take your time to research the best card for you, be mindful of your spending, and choose wisely.

Frequently Asked Questions

1. Can you pay for streaming services with a credit card?

Yes, most definitely. Most streaming platforms readily accept credit card payments, and it can be a common, straightforward, and convenient way to manage subscriptions. Using a credit card can also mean benefits like purchase protection and rewards-earning potential.

2. Do all streaming services count for credit card rewards?

It depends on the credit card and its specific terms. While many major streaming platforms (i.e., Netflix, Hulu, Spotify) are typically included in "streaming" or "entertainment" bonus categories or statement credit, smaller or niche services might not always qualify. Always read over your card issuer's reward program details and terms with a fine-tooth comb.

3. What's the difference between cash back and points for streaming rewards?

Cash back gives you a percentage of your spending back as money–typically in the form of statement credit, direct deposit, or a check sent in the mail. With points, you can rack them up from your purchases. They can usually be redeemed for travel rewards, gift cards, online shopping, or statement credit. With points, their value often varies according to the redemption method of choice.

For streaming services, cash back is usually straightforward. That said, points can sometimes have greater value if you redeem them strategically.

4. Should I get a credit card with an annual fee just for streaming rewards?

This largely depends on how much you spend each year on streaming services. You'll also want to factor in the card's other benefits. Should the statement credits or rewards earned on streaming and other spending categories significantly outweigh the annual fee, it could be worth it. However, if you're focused solely on streaming, a no-annual-fee credit card with bonus categories might be a better fit.

Editorial disclosure: The credit card offers and information presented on this page are current as of the published date. However, credit card terms, including APRs, fees, and promotional offers, are subject to change without notice. Some offers listed may no longer be available or may have expired. Please refer to the issuer's website for the most up-to-date terms and conditions.

Issuer-independence disclosure: This content is based on the independent analysis of the publisher and/or its authors and has not been provided by or endorsed by any card issuer.