Maximize your savings with the best cash back credit cards that suit your lifestyle. Get started and earn rewards from Chase or Capital One!
The best cash back credit cards offer rewards and savings on everyday purchases. These cards have been popular for years as credit card companies incentivize card usage. When choosing a card, it’s important to consider your spending habits and the rewards offered to ensure you’re getting the most out of your cash back rewards. With various options available, you can find a card with a high cash back rate, flexible redemption options and additional perks.
Check out Benzinga’s top picks for the best cash back credit cards available on the market today. Compare rates and benefits to find the perfect card for you.
Quick Look: The Best Credit Cards for Cash Back
Best Cash Back Credit Cards
Wondering what’s the best credit card for getting cash back? Explore your top options below.
1. Best for Rotating Rewards Categories: Chase Freedom Flex Card
Chase’s Freedom Flex credit card offers rewards on rotating categories including travel, dining, drugstores and gas. With no annual fee, the card has a generous rewards program, where you can earn 5% cash back in quarterly bonus categories. You can choose from quarterly bonus categories plus a flat 1% cash back on all other categories. Additionally, this card offers other benefits such as no expiration on your rewards and no minimum cash back required for redemption.
Why We Love It: With its rotating bonus categories, high rewards rate and no annual fee, Chase Freedom Flex Card is a solid choice for anyone looking to earn cash back on their spending. Plus, the rewards never expire and there is no minimum cash back for redemption.
2. Best for Double Cashback: Discover it Cash Back Card
Another option that will give you 5% rotating cash back categories is the Discover it Cash Back Card. It will also help you track your quarterly spending cap. You’ll get 1% cash back on all other categories. A no-annual-fee card can deliver tidy rewards outside of its ongoing 1% earning flat rate. Better yet, Discover automatically matches all the cash back earned at the end of the first year.
Why We Love It: Discover it Cash Back Card is a solid choice for consumers looking to earn cash back on their purchases. Their 5% cash back and cashback match offers allows you to earn rewards faster.
3. Best for Personalized Rewards: Bank of America Customized Cash Rewards Card
Bank of America offers a unique customized cash back option with no annual fee. If you qualify as a preferred rewards client, you’ll get a 25% to 75% boost in cashback earnings. Even if you don’t qualify for preferred rewards, you’ll earn 1% cashback or more with bonuses. Plus, you have the option to change 3% bonus category every month.
Why We Love It: With its flexible rewards categories, sign-up bonus, introductory offer, and no annual fee, Bank of America Customized Cash Rewards Card is definitely worth considering for your everyday spending needs.
4. Best for Everyday Spend Bonuses: Chase Freedom Unlimited Card
Chase Freedom Unlimited Card is a good overall card for flat-rate cashback. You can earn 1.5% cashback on all purchases. It also offers a low introductory annual percentage rate (APR), no annual fee and transparent bonus structures. Cash back rewards do not expire as long as the account is open.
The card also comes with a variety of additional benefits, including purchase protection, extended warranty protection, and fraud protection. These features can give you peace of mind knowing that your purchases are covered and your information is secure.
Why We Love It: This straightforward cash back credit card offers valuable rewards and benefits. Whether you’re a frequent traveler, a savvy shopper, or just looking to maximize your spending, Chase Freedom Unlimited Card has something to offer.
5. Best for Students: Citi Double Cash Card
The Citi Double Cash Card offers 1% cash back on purchases and another 1% as you pay them off. The card has no annual fee and a 0% intro APR on balance transfers for 18 months from the date of account opening. Remember, though, that there’s an intro fee of 3% on each balance transfer for the first four months and 5% after that. Students can use this card to consolidate debt, earn rewards, enjoy liability and identity protection and manage emergencies as needed, but you must remember to pay on time to get your cash back.
Why We Love It: We love Citi Double Cash Card because of its simplicity. There are no rotating categories to keep track of, and no limits on the amount of cash back you can earn. This makes it an easy card to use for all of your purchases, without having to worry about tracking spending in different categories.
6. Best for Simplified Cashback: Capital One QuicksilverOne Cash Rewards Card
The Capital One QuicksilverOne Cash Rewards Credit Card offers unlimited rewards — 1.5% cash back on every purchase you make. Plus, your card is regularly reviewed for credit line increases, you can monitor your credit score, tap to pay and protect yourself with fraud coverage. Use the online calculator to learn how much cash back you can earn each year with this simple, flat-rate cash back card from Capital One.
However, it has a $39 annual fee and a 29.99% variable APR, which is not the best offer.
Why We Love It: Capital One QuicksilverOne Cash Rewards Credit Card is a great option for individuals with average credit. It offers a simple and straightforward cash back rewards structure and flexible redemption options.
7. Best for Grocery Bonus: American Express Blue Cash Preferred Card
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*Terms apply ** Be advised that applicants who do not have a credit history in the U.S. but have had credit cards or loans in Australia, Brazil, Canada, the Dominican Republic, India, Kenya, Mexico, Nigeria, Philippines, South Korea, Switzerland or the United Kingdom will need to provide a SSN or ITIN during the application process.
The Blue Cash Preferred Card from American Express is perfect if you buy groceries often, love binging on your favorite shows and travel frequently. It offers a blend of everyday rewards and travel bonuses.
You get 6% cashback at U.S. supermarkets for up to $6,000 in annual purchases and 6% cashback on select U.S. streaming subscriptions. You can earn 3% cashback on transit such as trains, taxicabs, rideshare services, ferries, tolls, parking, buses and subways. The card offers 3% cashback at U.S. gas stations and 1% cashback on other purchases.
You can get a welcome bonus of $250 after you spend $3,000 in purchases in your first six months of card membership.
Why We Love It: The card offers a compelling combination of high cash back rewards, valuable benefits, and a solid welcome bonus for new cardholders.
8. Best for Entertainment Bonus: Capital One SavorOne Cash Rewards Card
If you spend a lot of time eating out or attending events, Capital One SavorOne Cash Rewards Credit Card is one of your best options. You can earn unlimited 3% cashback on dining and entertainment, popular streaming services and at grocery stores, and 1% on all other purchases.
Do you prefer ordering in? The card lets you earn 10% cash back if you order with Uber Eats. It also gives you privileges such as VIP experiences, discounts and on-site perks at select events.
Why We Love It: The Capital One SavorOne Cash Rewards Credit Card is a great option for those who want to earn rewards on dining, entertainment, and grocery purchases without having to pay an annual fee.
9. Best for Flat Cashback: Wells Fargo Active Cash Card
Wells Fargo Active Cash offers an unlimited 2% cash rewards rate on purchases. There’s no annual fee, which puts it in competition with the best flat-rate cash-back cards on the market. Wells Fargo’s offering gives you the flexibility of flat-rate unlimited rewards without worrying about bonus categories, activations or spending limits.
The card also comes with a few extra perks. Cardholders can enjoy a 0% introductory APR for the first 15 months on purchases and balance transfers (with a 3% balance transfer fee). This can be a great way to save money on interest if you have a large purchase to make or want to transfer a balance from another credit card.
Why We Love It: The Wells Fargo Active Cash Card offers unlimited 2% cash back on all purchases, making it a great choice for those who want to earn cash back on every dollar spent. There are no categories to keep track of or rotating bonus categories to worry about – just a flat 2% cash back on all your purchases.
10. Best for High Cashback: PayPal Cashback Mastercard
In addition to the PayPal Mastercard’s flat 2% cashback, you can earn 3% cashback when you check out using PayPal Digital Wallet. You get all the benefits of a rewards credit card, plus the convenience of a digital wallet. Additionally, you will have access to the benefits of Mastercard such as ID Theft Protection™ and advanced microchip technology.
Why We Love It:
If you’re someone who frequently makes online purchases or uses credit cards for everyday transactions, then you may want to consider adding the PayPal Cashback Mastercard to your wallet. This credit card offers users the opportunity to earn cash back on their purchases, making it a valuable tool for those looking to maximize their rewards.
What Are Cash Back Credit Cards?
Cash back credit cards allow you to earn a flat percentage or rotating rewards categories. For example, you might earn a flat rate of 1.5% cashback or earn up to 5% cashback in certain spending categories like travel, dining, gas, groceries or entertainment. Used responsibly, the best cash bonus credit cards can help you save more on everyday purchases.
How Do Cash Back Credit Cards Work?
Cash back credit cards work like any other type of credit card. When you apply for the credit card and are approved, you’ll get a card with a set credit limit, cash back policies, an APR on any debt and in some cases, new signup rewards.
When you make everyday purchases with cash back cards, the credit card company will apply the cashback directly as a statement credit or issue points you can redeem for cashback, gift cards or other shopping opportunities. Usually, the credit card issuers can offer cashback by sharing the credit card processing fee charged to retailers with the consumer.
Types of Cash-Back Credit Cards
Here’s an overview of the various types of cash back credit cards you can choose from.
- Flat-rate: Flat-rate cash back cards offer a flat percentage back on all purchases. Usually, that’s 1% to 1.5%. However, in some cases, card issuers may offer up to 2% cashback.
- Tiered: Tiered cash back credit cards are the most common cash back card structure. With tiered cards, the card issuer offers tiered rewards, which means higher cash back percentages on certain categories of purchases. For example, the credit card issuer might offer 3% cashback on gas and groceries, with 1% cashback on all other spending categories.
- Rotating category: Rotating category cash back credit cards offer higher rewards in a specific category for a set time, usually one to three months. For example, the card issuer might offer 5% cashback on gas purchases for three months or 3% cashback on entertainment in certain months. All other spend categories remain at a base cash back rate, usually 1%.
Common Reward Categories on Cash Back Credit Cards
The different reward categories on cash back credit cards, include:
- Dining: You’ll get a higher reward for restaurants and other dining purchases — a good option if you eat out frequently.
- Groceries: If you spend a lot on groceries, a cash back card that rewards grocery purchases can be a smart move. This usually only applies to U.S. grocery stores.
- Gas: If you drive and want to lower your gas bill, a cash back credit card that offers high rewards on gas can help you save more.
- Travel: One of the most popular types of cashback or rewards cards, many travel bonus cards offer mile points that you can redeem for cash, gift cards or travel bookings.
- Entertainment: This can include concert tickets, restaurants, museums and more, depending on the cash back card issuer.
Pros and Cons of Cash Back Credit Cards
While cash back credit cards can be a great way to save money and earn rewards, there are also potential pitfalls to be aware of. Here is an overview of the pros and cons:
- Simplified rewards
- Earn more cashback on everyday purchases
- Cash rewards
- Most have no annual fee
- Potential for sign-up bonuses
- Shopping perks
- Get 0% APR signup offers to save more
- High APRs after introductory offers
- Some have foreign transaction fees
- Earning caps on some cards
How to Choose the Best Cash Back Credit Card
When choosing a cash back credit card, consider how you will use the card and look at your normal spending habits. Here is an overview of the key factors to consider to find the best credit card for cash back rewards.
- Main spend categories: Do you eat out frequently or spend more on groceries? What is your biggest monthly expense category? Choose a cash back card with high rewards in your primary spending category.
- Annual fees: The main benefit of a cash back card is the rewards. An annual fee can cost more than you earn in a year, so choose a card with no annual fees.
- APR: Choose a cash back card with a low APR.
- Introductory offers: Some cash back cards offer up to $500 in signup bonus rewards or a 0% introductory APR offer for 12 to 18 months. These rewards can be a good incentive to choose a particular card, especially if they meet your other criteria.
How to Make the Most of Your Cash Back Credit Card
Here are some tips to help you maximize the rewards of your cash back credit cards:
- Choose the right cash back credit card for you: Consider how you will use the card and choose one that matches your spending habits.
- Use online portals: Many credit card issuers offer online shopping portals where you can earn additional cash back rewards for purchases made at participating retailers.
- Stack your rewards: Try stacking your rewards with other promotions or discounts, such as using a cash back credit card with bonus rewards along with coupons or promo codes at checkout to save money.
- Take advantage of signup bonuses: Credit cards often offer signup bonuses to new cardholders who spend a certain amount within a specified time frame. These bonuses can provide a significant amount of cash back rewards, but it is important to ensure that you can meet the spending requirements without overspending.
- Pay your balance in full: Pay off credit card balances in full each month to avoid paying interest and negate the rewards earned.
- Don’t overspend just to earn cashback: While it may be tempting to focus on earning cashback rewards, it is important to prioritize responsible spending habits and make informed financial decisions to avoid overspending and potentially losing money in the long run.
Maximizing the Best Cash Back Credit Cards
The best cash back credit cards offer significant advantages to save more. It is important to consider your spending habits and the rewards structure of the card to maximize the rewards benefits. To get more from a cashback card, look for credit cards with a large signup bonus and no annual fees. You can find excellent rewards cards from Visa, Mastercard or American Express. Regardless of the card you choose, remember strong financial habits for credit cards. Don’t fall into the trap of overspending just to earn cashback rewards – focus on budgeting, saving and making informed financial choices that benefit your overall financial well-being.
Frequently Asked Questions
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Yes, 5% cash back is an excellent reward for a credit card.
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Who gives the highest cashback depends on your reward category and current card offers. Any of the cash-back cards above offer high cash-back offers.
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Yes, cash back cards are worth it for most people. They offer incentives to earn more on your everyday purchases.
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No, you aren’t taxed on cash back credit card rewards. If you earned the rewards by using the card, it’s viewed by the IRS as a rebate instead of taxable income.
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Yes, cash back credit cards have some downsides, including high interest rates, annual fees and restrictions on redemption. Consumers should carefully consider these drawbacks before deciding if a cash back credit card is suitable for them.
