A majority of the top cash back cards come with no annual fees. Several even offer higher cash back rates on category-based spending and additional perks.
The best cash back credit cards offer simple, flexible rewards to match your spending habits. Cash back rewards come in the form of something everyone loves — cash. These cards often come with other benefits and redemption options, but their primary purpose is to provide cash back rewards on all of your card purchases.
More about cash back cards
MoneyGeek’s Take: Top 10 Cash Back Credit Cards
The top 10 cash back cards we’ve selected do not charge any annual fees. Some, like the U.S. Bank Altitude Go Visa Signature Card and the Chase Freedom Unlimited Card, also come with spend-based welcome bonuses. Depending on the card you choose, you may earn higher-than-usual cash back on bonus categories or a flat cash back rate on all purchases. The best ones also include intro 0% APR offers.
Just how much cash back you earn depends on the card you select. For instance, some cards offer higher cash back rates when you spend on purchases in specific categories, such as dining, travel, gas, groceries and drugstores. On the other hand, some of the best cards from this segment offer higher-than-usual flat cash back rates across all categories. The right card for you will depend on your individual spending habits and needs. But this list of the top cards can help you narrow down your choices.
U.S. Bank Altitude Go Visa Signature
Solid dining rewards card with no annual fee
ExcellentCredit Needed
$0Annual Fee
1–4 Points per $1Rewards Rate
4xRewards Rate on Dining
2xRewards Rate on Gas
We love the no annual fee U.S. Bank Altitude Go Visa Signature Card not only because it lets you earn reward points faster when you spend on bonus categories, but also because of its intro offers. If you spend $1,000 on purchases in the first 90 days, you earn 20,000 bonus points, valued at $200. You may also benefit through the card’s 0% APR offer on purchases and balance transfers for the first 12 billing cycles.
This card offers 4x points on dining, takeout and restaurant delivery; 2x points on streaming services, and at grocery stores, grocery delivery, gas stations and EV charging stations; and 1x points on all other purchases. Redeeming your points instantly to shop almost anywhere is possible once you enroll in Real-Time Rewards.
Using this card outside of the U.S. is perfect because it comes with no foreign transaction fees. You also get a $15 credit for annual streaming service purchases from Netflix, Apple TV+, Apple Music, Hulu, Spotify and more.
Pros
High rewards on dining-related purchases
0% introductory APR for the first 12 billing cycles
No annual fee
Annual bonus for streaming services
Zero fraud liability
Cons
Low base rewards rate
Balance transfers attract a 3% fee (except during the introductory period)
Pay no interest on purchases for the first 12 months because of the intro 0% APR offer
Earn 20,000 bonus points if you spend $1,000 in the first 90 days
Earn 4x points on takeout, food delivery and dining
Get a $15 credit once a year when you use your card to pay for eligible streaming services such as Netflix, Spotify and Amazon Music
Redeem your reward points for cash back, gift cards, travel or merchandise
Use the U.S. Bank mobile app to lock and unlock your card in case you lose or misplace it
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
An excellent no-annual-fee card that lets you earn unlimited cash back
ExcellentCredit Needed
$0Annual Fee
1.5–5% Cash BackRewards Rate
3xRewards Rate on Dining
5xRewards Rate on Air Travel
We're in love with the Chase Freedom Unlimited card because it comes with no annual fee and gives you the ability to earn unlimited rewards. Depending on your spending habits, you stand to earn up to 5% cash back on your purchases. Another plus is that the cash back rewards you earn don't expire for the life of the card.
An intro 0% APR on purchases for the first 15 months enables you to make big-ticket purchases without having to pay interest — provided you repay the entire amount during the intro period. Cardholders can also eliminate interest on existing debt with a balance transfer. You'll enjoy 15 months with no interest to pay off your transferred balances After the promo period expires, you might benefit by getting a low ongoing rate depending on your credit score.
Complimentary purchase and travel protection might come in handy in various scenarios, such as if you miss your flight or an item is damaged or stolen after you buy it.
If you use Lyft to get around, you stand to benefit even more — by earning 5% cash back until March 2022.
Pros
No annual fees
0% APR on purchases for 15 months from account opening
Intro bonus cash back offer
Earn 5% cash back on travel purchases
Earn 3% cash back on dining-related purchases
Earn 3% cash back on drugstore purchases
Earn 1.5% cash back on all other purchases
You may earn unlimited cash back that never expires
Redeem rewards for cash back, for gift cards, for travel or through Amazon.com
Get complimentary purchase and travel coverage
Cons
Foreign transaction fees
Cash advance and balance transfer fees
Penalty APR may apply in case of late and returned payments
Pay $0 annual fee for the life of your card
Pay no interest on purchases and balance transfers for the first 15 months
Travel purchases through Chase Ultimate Rewards earn 5% cash back
For the first year, earn 5% cash back at gas stations (on up to $6,000 in purchases)
Spending at restaurants, on takeout and through other eligible delivery services, as well as drugstore purchases, earn 3% cash back
All other purchases earn 1.5% cash back
You get to earn unlimited cash back rewards, and they don't expire as long as your account remains active
Different ways to redeem your cash back include receiving a statement credit, withdrawing it through a direct deposit, using it to get gift cards or using it to pay for travel
Zero liability protection, 24/7 fraud protection, purchase protection and extended warranty protection are in place to provide extra peace of mind
Feel better when traveling by knowing that you have access to travel and emergency assistance services, trip cancellation/interruption insurance and auto rental collision damage coverage.
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A great no annual fee rewards card for Amazon Prime members
Good-ExcellentCredit Needed
$0Annual Fee
1% - 5% Cash BackRewards Rate
2xRewards Rate on Dining
2xRewards Rate on Gas
We love the Amazon Prime Rewards Visa Signature Card because of its welcome bonus, high cash back rate on Amazon purchases and added perks. For starters, all cardholders get a $100 Amazon Gift Card soon after their applications’ approval. Not having to pay an annual fee is a definite advantage.
As a Prime member, you earn 5% cash back when you use this card to make purchases through Amazon.com and Whole Foods Market. You get 2% back at gas stations, drugstores and restaurants, and 1% on all other purchases.
Using this card outside of the country makes sense as it comes with no foreign transaction fees. Additional benefits include purchase protection, extended warranty protection, baggage delay insurance, travel accident insurance and lost luggage reimbursement.
Pros
New cardholder welcome bonus
High unlimited cash back of 5% cash back at Amazon and Whole Foods Market
2% cash back at restaurants, gas stations and drugstores
1% cash back on all other purchases
No annual credit card fee
No foreign transaction fee
Hassle-free rewards redemption on Amazon.com
Cons
Need an eligible Amazon Prime account membership to apply
High APR
$100 Amazon gift card as welcome bonus
High cash back for purchases at Amazon.com
Rewards points can be easily redeemed for purchases at Amazon.com, and for cash back, gift cards and travel on Chase
No foreign transaction fees
Travel accident insurance
Lost luggage reimbursement
Baggage delay insurance
Travel and emergency assistance
Zero fraud liability
Auto rental collision damage waiver
Roadside dispatch
Extended warranty protection
Purchase protection
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A great no annual fee cash back card with a unique bonus category system
Good-ExcellentCredit Needed
$0Annual Fee
1% - 5% Cash BackRewards Rate
15 monthsAPR Offer Duration
15 monthsBalance Transfer Duration
The Citi Custom Cash Card might be a great addition to your credit card portfolio if you wish to earn higher-than-usual cash back without paying any annual fees. In addition, you stand to earn $200 cash back if you spend $750 on purchases within the first three months.
This card offers 5% cash back on purchases up to $500 from your highest eligible spend category every billing cycle. The categories include grocery stores, gas stations, restaurants, home improvement stores, drugstores, live entertainment, fitness clubs, and select travel, transit and online streaming services. All other purchases come with 1% cash back. What helps is you don’t have to sign up for bonus categories, and the allocation of cash back happens automatically.
You may redeem the cash back you earn as a statement credit, a check by mail or a direct deposit to your bank account. You may also use it for booking travel, shopping at Amazon.com or buying gift cards.
This card might also work well for you if you want to transfer a balance from a different credit card or if you plan to maintain revolving balances in your account. This is because it comes with a 0% APR offer on purchases and balance transfers for the first 15 months.
Other benefits include free access to your FICO Score and Citi Entertainment.
Pros
$200 cash back after you spend $750 within the first three months
5% cash back on up to $500 spent in the top category every month
An introductory APR offer that is valid for the first 15 months on purchases and balance transfers
No annual fee
Protection against unauthorized charges
Cons
Foreign transaction fee of 3%
Relatively low limit of $500 per month for a 5% cash back on the top-spending eligible category
You need a credit score that is either good or excellent.
Only 1% cash back for purchases made on categories other than the high spend category
One-time balance transfer fee of $5 or 5%
Late payment fee of $40
No annual fee.
5% cash back on the top purchase category on spending of up to $500 every month.
The spend category can change from one month to another, depending on what you spend most on.
You get unlimited 1% cash back on all other purchases.
Intro 0% APR applies for 15 months on purchases and balance transfers.
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
An easy-to-use cash back card with quarterly rotating bonus categories
Good-ExcellentCredit Needed
$0Annual Fee
1–5% Cash Back*Rewards Rate
5xRewards Rate on Air Travel
3xRewards Rate on Dining
We recommended the Chase Freedom Flex Card to people who wish to earn high category-based cash back without paying an annual fee. You get 5% cash back on combined purchases of up to $1,500 in bonus categories you activate every quarter and on travel purchased through Chase Ultimate Rewards. You get 3% cash back on multiple bonus categories. You also get higher-than-usual cash back at gas stations during the first year.
This card comes with an introductory APR applies on purchases and balance transfers. However, if you use this card to transfer a balance, you need to pay a balance transfer fee. This card also comes with foreign transaction fees.
Some of the additional benefits come in the form of purchase protection, extended warranty, cell phone protection, trip cancellation/interruption insurance and auto rental collision damage waiver.
Pros
Generous welcome offer
Rotating cash back bonus categories
No annual fee
Excellent customer-facing features
Grocery store perks
DoorDash and Lyft benefits
Cons
Modest base cash back rate
Your interests might not align with quarterly rotating bonus categories
Foreign transaction fees
5% cash back on quarterly rotating bonus categories
5% cash back on Chase Ultimate Rewards travel purchases
3% cash back on dining, takeout, delivery and drug store purchases
1% cash back on all other purchases
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A great no-annual-fee card that comes with rewards
Good-ExcellentCredit Needed
$0Annual Fee
3% Cash Back*Rewards Rate
3xRewards Rate on Entertainment
2xRewards Rate on Groceries
We love the no-annual-fee Capital One SavorOne Rewards card because it gives you the ability to earn unlimited 3% cash back across different categories and 1% cash back on all others. New cardholders stand to earn a $200 early spend bonus, provided they spend $500 on purchases in the first three months. Being able to redeem your cash back in multiple ways is a definite plus.
An introductory 0% APR offer on purchases and balance transfers for the first 15 months may lead to reasonable savings.
Using this card during your international travels is perfect because it comes with no foreign transaction fees.
Cardholders also stand to benefit through complimentary travel accident insurance and travel assistance services.
Pros
No annual fees
0% APR on purchases and balance transfers for the first 15 months
Earn 3% cash back on entertainment, dining, popular streaming services and at grocery stores
Earn 1% cash back on all other purchases
Get 8% cash back when you book tickets through Vivid Seats until January 31, 2023
Earn a $200 cash bonus if you spend $500 on purchases within the first three months
Earn unlimited cash back that does not expire for the life of the card
Redeem cash back in the form of a statement credit or a check
You may also use your cash back rewards through PayPal and Amazon.com
Pay no foreign transaction fees
Get complimentary extended warranty, travel accident insurance, 24-hour travel assistance services and concierge services
Get protection against unauthorized use of your card through $0 fraud liability
Get special access to premier culinary experiences as well as music and sporting events
Cons
Cash advance fee
Balance transfer fee
$0 annual fee
0% intro APR on purchases and balance transfers for the first 15 months
Unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores
Unlimited 1% cash back on all other purchases
Get a $200 bonus after spending $500 on purchases in the first three months
Redeem your cash back as a statement credit, as a check or through Amazon.com or PayPal
Credit rating-dependant APR on purchases
No foreign transaction fees
Complimentary travel accident insurance and access to 24-hour travel assistance services
Complimentary 24-hour access to concierge services
Purchases made using card protected by extended warranty
$0 fraud liability to safeguard against fraudulent use
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
An excellent no-annual-fee cash back card with 0% intro APR on purchases
Good-ExcellentCredit Needed
$0Annual Fee
1–3% Cash Back*Rewards Rate
2xRewards Rate on Gas
1xRewards Rate on Groceries
We love the American Express Blue Cash Everyday Card because it charges no annual fee and lets you earn high cash back across specific categories. You earn 3% cash back on up to $6,000 in purchases at U.S. grocery stores each year, 2% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on all other purchases.
A welcome offer lets you earn $250 back in the form of a statement credit by spending $2,000 on purchases within the first six months. This card also comes with an introductory 0% APR on purchases for the first 15 months.
Using this card outside of the U.S. might not a good idea because it charges foreign transaction fees.
Pros
$0 annual fee
Intro 0% APR on purchases for 15 months from account opening
Spending-based welcome bonus of $200 back
Up to 3% cash back
Cons
Foreign transaction and cash advance fees
Penalty APR might apply in case of late/returned payments
No annual fees
0% APR on purchases for 15 months from account opening
Variable APR of 13.99% to 23.99% applies on purchases after the intro period
Spend $2,000 on purchases in the first six months to earn $200 as statement credit
3% cash back on groceries at U.S. supermarkets, on up to $6,000 per year
2% cash back on gas at U.S. gas stations and at select U.S. department stores
1% cash back on all other purchases
No fees for Buy Now, Pay Later Plan It plans created in the first 15 months, then a fee of up to 1.33% applies per plan
Get peace of mind when you rent a vehicle because of complimentary car rental loss and damage insurance
Fraud protection offers safeguard against possible misuse of your card
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A great no annual fee cash back card with a 0% APR offer
Good-ExcellentCredit Needed
$0Annual Fee
2% Cash BackRewards Rate
2xRewards Rate on Gas
2xRewards Rate on Groceries
We think the Wells Fargo Active Cash Card might work well you if you wish to earn cash back and pay no annual fee. As a new cardholder, you may earn a $200 cash rewards bonus if you spend $1,000 on purchases during the first three months. This card also comes with a 0% APR offer for 15 months on purchases and balance transfers.
The Wells Fargo Active Cash Card offers 2% cash back on all purchases. You may use the cash back you earn to offset eligible purchases, you may redeem it as a credit to an existing Wells Fargo credit card, checking or mortgage account, you may redeem it through ATMs or you may use it to purchase gift cards.
Additional benefits come in the form of cell phone protection and access to a 24/7 concierge service as well as the Visa Signature Hotel Collection. Using this card outside of the U.S. might not work well for you, given its 3% foreign transaction fee.
Pros
2% cash back rewards on all spending
Unlimited cash back rewards that don't expire
No annual fee
0% intro APR on purchases and balance transfers for 15 months
$200 welcome bonus after spending $1,000 on purchases within three months from account opening
Access to Visa Concierge and Visa Signature Luxury Hotel Collection
Cons
3% foreign transaction fee
Balance transfer fees
Limitations on welcome bonus eligibility
No annual fee
2% cash back on all purchases
Redeem cash back as a statement credit, a direct deposit to a Wells Fargo account, or a mailed check
Spend $1,000 within three months from account opening to earn a $200 welcome bonus
Enjoy 0% APR on purchases and balance transfers for first 15 months
3% foreign transaction fee
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A great no-annual-fee card that comes with unlimited 1.5% cash back across categories
ExcellentCredit Needed
$0Annual Fee
1.5% Cash BackRewards Rate
1.5xRewards Rate on Gas
1.5xRewards Rate on Groceries
We strongly recommend the American Express Cash Magnet Card to people who want to earn rewards without paying any annual fees. No matter which category you spend in, you earn 1.5% as cash back. Besides, you earn unlimited cash back rewards that never expire.
A promotional 0% APR offer on purchases for 15 months gives you easy means to save some money on big purchases. If you spend $2,000 on purchases within six months from account opening, you may look forward to receiving $200 as a statement credit.
Fraud protection ensures that you are not held liable for fraudulent charges.
Pros
Pay no annual fee for as long as your account remains active
Stand to earn $200 bonus cash back by meeting a simple spending requirement
Benefit by paying no interest on purchases for the first 15 months - then an APR of 13.99% to 23.99% will apply
Earn unlimited 1.5% cash back on all purchases
Get additional cards linked to your primary card to earn more cash back
Benefit through car rental insurance, should the need arise
Get access to American Express Experiences
Set up monthly plans for big purchases and avoid paying interest
Cons
Penalty APR apples if you make a late or returned payment
Cash advance and foreign transaction fees apply
$0 annual fee for the life of the card
Additional cards come with no annual fees
0% APR on purchases for the first 15 months, after which it might vary between 13.99% and 23.99%
Spend $2,000 on purchases in the first six months to earn $200 as statement credit
Use the Plan It option for big purchases and pay no interest, just a fixed monthly fee
Get complimentary car rental loss and damage insurance
All cardholders get access to American Express Experiences, American Express Seating, American Express Presales and a bunch of other Amex-related benefits.
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
MoneyGeek experts collect 57 data points from different sources such as credit card issuer websites, our partners and the Consumer Finance Protection Bureau to ensure that our readers get access to the most up-to-date and accurate information possible. They arrive at the revised list of cash back cards by subjecting all new and existing cards from this segment to our unique ranking methodology that assigns category-specific percentages to different parameters.
Cash back rate: 11%
Welcome offer: 7%
Annual fee: 7%
Average APR: 5%
How to Compare Cash Back Credit Card Offers
Cash back credit cards are not all created equal, and the right card for someone else may not be the right one for you. Here are some tips to simplify the process and find the best cash back credit card for you.
1
Know Your Score
Knowing your credit score will help you quickly narrow down the field to only cards you qualify for right now. Having access to credit scores and understanding the factors that make up your score will help you now and in the long run.
2
Know Your Spending
Having a good sense of where you spend your money will also lead you to the right card. Cash back cards offer several reward structures. Some cards offer flat cash back rewards on all purchases. Other cards offer bonus rewards in select spending categories like travel, dining, groceries and gas. Look for a card with a rewards structure that matches your spending habits.
3
Factor in Fees
Of course, you can’t forget about fees when calculating potential card earnings. That doesn’t mean cards without annual fees are better. But you should consider how you will use the card and whether the perks and rewards the card offers justify the annual fee.
4
Look at Other Benefits Included
Once you’ve looked at the cash back rewards, take time to consider other benefits included with the card. Some cards offer extra features like cell phone protection, free credit score access, travel perks and purchase protection.
MoneyGeek’s Take: Finding the Right Cash Back Credit Card for You
A cash back credit card is a valuable tool. You earn back a percentage of your card purchases, typically as a statement credit or direct deposit. Unlike other forms of rewards, what you see is what you get with cash back rewards. For instance, the value of miles earned with an airline rewards credit card can change depending on how they are redeemed, and you often get more value when using them for international travel.
However, there are other rewards credit cards, like Chase Sapphire Reserve and Chase Sapphire Preferred, that earn valuable rewards that are redeemable several ways, including for cash back and travel.
Not all cash back cards work the same either. Ink Business Cash Credit Card is specifically for business owners, and its reward structure is geared towards the spending needs of a business. Deserve EDU is for college students with little to no credit. Individuals with good to excellent credit can qualify for cash back cards that offer much higher rewards and other benefits.
If you like to travel, one of the top travel rewards credit cards might be a better fit. If you’re planning on making a large purchase in the near future or have existing credit card debt racking up interest charges, a good balance transfer card or rewards card with an intro APR offer might make more sense. Your best bet is to determine your credit card needs and then find the right fit for you.
Who Should Consider a Cash Back Card?
You might be wondering why you should consider getting a cash back credit card. Unlike other rewards credit cards, there’s no guessing when it comes to the card’s value. You’ll earn a percentage back on your card purchases based on the card’s set rewards rates. Your rewards come back to you as cash, usually as a statement credit or a deposit to your bank account. Some cards reward you the same no matter the purchase, while others offer higher rewards rates in specific categories.
That doesn’t mean everyone should get a cash back card. For example, if you’re an avid traveler, you might find more value in a travel rewards credit card that comes with a large sign-up bonus, earns points or miles towards free travel and comes with extra perks like hotel status, waived airline fees and more.
Expert Advice for First-Time or Newer Cash Back Cardholders
We continue to help your research, by gathering advice from financial, credit counselors and other credit card experts and answering common questions related to cash back cards and reward programs.
What mistakes do people make with credit cards, and specifically rewards programs?
What are the "gotchas" about credit cards and rewards programs that are not well understood by consumers?
What advice can you give consumers about managing their cash back rewards cards?
Bruce McClary
Vice President of Communications, National Foundation for Credit Counseling
Dr. Michael Shipman, CPA
Assistant Professor of Accounting at Mount Aloysius College
Callie Renner
Wealth Advisor at Beacon Pointe Advisors
Tahereh Alavi Hojjat
Chair & Professor of Economics
Peter Staples
Assistant Professor of Business and Economics at Lyon College
Demissew Ejara
Associate Professor of Finance at The University of New Haven
Caleb Martin
Professor of Accounting at Erskine College
Chris M. Lawrey, PhD
Assistant Professor at the University of South Alabama
Laura Coordes
Associate Professor of Law at Arizona State University
John Peatross
Certified Public Accountant and Adjunct Instructor at the University of Maryland, Baltimore County
Sheila A. Handy
Visiting Professor - Department of Economics at Lafayette College
Joseph R. Stasio
Associate Professor, Marketing at Merrimack College
Amit Sinha
Professor of Finance and Quantitative Methods at Bradley University
Dr. Christopher Newman
Associate Professor of Marketing at The University of Mississippi
Kunter Gunasti
Assistant Professor of Marketing at Washington State University
Jesse Veenstra
Instructor of Finance at Dordt University
Dr. Aniruddha Pangarkar
Assistant Professor of Marketing at the University of Wisconsin-Green Bay
Jacqueline R. Jaeger
Adjunct Business Faculty at the University of Dubuque
Philip Mayer
Professor of Economics and Political Science at Three Rivers Community College
Michael Manahan
Lecturer at California State University, Dominguez Hills
Michelle Gabor
Business Lecturer at the University of Wisconsin - Parkside, Entrepreneur, CPA
Dr. Han-Yen Kao
Department Chair, Assistant Professor of Business and Economics at Northwestern College
Dr. Angela Seidel
Associate Professor of Accounting and Chair of Undergraduate Business Programs at Saint Francis University
Rob Larson
Associate Professor of Management at Luther College
Katherine Aumer
Assistant Professor of Psychology at the University of Hawaii-West Oahu
Amarjit Singh
Professor, Various Universities
John Garner
CEO & Co-Founder of Card Curator
Shilpi Sunil Kumar
Assistant Professor of Economics at the College of Saint Benedict and St. John's University
Dr. Kareem Tannous
Assistant Professor at Cabrini University
Dr. Angela Buchanan
Associate Professor in Business & Economics at Lyon College
Monique Beauchamp-Doll
Professor of Business Administration at Macomb Community College
Mark Ma
Assistant Professor of Business Administration at the University of Pittsburgh
S. Abraham Ravid
Sy Syms Professor of Finance, Sy Syms School of Business at Yeshiva University
Michael Dixon
Adjunct Instructor of Business Administration at Shepherd University
Dr. Kwamie Dunbar
Associate Professor of Finance at Simmons University
Top Cash Back Cards FAQs Answered by The Geeks
Cash back credit cards come in many different forms, and having the answers to some of the most frequently asked questions about cash back cards and rewards will help you find the best card for you.
As you make purchases with your card, you’ll earn back a percentage of the total based on the card’s cash back rate. Then, you can redeem your cash back rewards for cash, usually in the form of a statement credit, a paper check, direct deposit to a linked bank account or gift cards.
Cash back credit cards are a great way to earn money back on everyday purchases. They can be worth it if you find one that matches your spending habits and provides enough value to justify fees, if there are any.
Typically, you redeem cash back rewards for a statement credit on your credit card account. Some cards allow you to instead receive a paper check in the mail, direct deposit to a linked bank account or redeem for gift cards.
Cash back rewards are typically credited to your account at the end of a statement period.
Your cash back rate is the percentage cash back earned with each purchase. Some cards offer a flat rate across the board for all purchases. Others offer bonus rewards rates for specific spending categories.
No, a cash advance is cash withdrawn from your credit card account. A cash advance puts cash in your pocket and is charged against your credit card account. It usually comes with extra fees.
A flat-rate cash back credit card earns the same percentage of cash back for all eligible purchases instead of earning different rates based on different spending categories.
A tiered cash back credit card earns cash back at different rates based on specific spending categories like travel, dining, gas and groceries.
Rotating cash back categories are spending categories that change throughout the year. Typically, rotating categories change quarterly and sometimes require cardholders to activate to earn rewards.
Cash back is only one type of rewards credit card. The other primary option is travel rewards, which typically come in the form of points or miles.
Tips for People Looking to Maximize Credit or Cash Back Deals
Perhaps you already have experience using a cash back or other rewards credit card under your belt. Like anything in life, there are always new things to learn when it comes to cash back rewards.
1
Maximizing Your Cash Back Rewards
To maximize cash back rewards, you’ll want to be in tune with your spending habits. Do a deep dive into your past spending to see where you spend money the most. Then, align your cash back cards with your spending so that you earn the best rates.
Having more than one credit card can also help you take advantage of increased rewards rates from both cards. If you have a card that offers a higher cash back rate for grocery purchases but only 1% cash back for other purchases, you can pair it with a flat-rate cash back card that earns more than 1% to earn more cash back.
2
Comparing Cash Back Rates to Find the Right Card
It’s also wise to check your card’s cash back rates so that you’re aware of any restrictions or limitations. Some cash back cards, like Chase Freedom Flex, offer rotating bonus categories that you have to activate each quarter. Keeping track of details like that every few months is often hard to do.
Some cash back credit cards have maximum spending limits. The Ink Business Cash Credit Card, for example, caps several spending categories at the first $25,000 spent each year. Personal cash back cards will have lower annual limits. You can maximize your cash back rewards by at least hitting spending limits or finding a cash back card without any limitations, depending on your needs.
3
Comparing Cash Back to Points and Miles Deals
Typically, rewards points and miles carry more value than cash rewards. They are also often more complicated to understand, earn and use than cash back rewards.
The real value is in understanding your own credit card needs. Rewards credit cards that earn points and miles make sense if you travel often. If you only travel a couple of times a year, your rewards could go to waste and possibly expire. A card like Chase Sapphire Preferred offers more flexibility with redemptions, even as a card that earns points. You can use Chase Ultimate Rewards points towards flights, hotels, gift cards, and yes — cash. Knowing how you want to use your rewards will lead you towards the right type of rewards credit card.
FAQs About Getting the Most Out of Your Cash Back Card
Below are answers to common questions on how to maximize cash back credit cards.
Yes, there are cash back cards that offer 3% cash back rates or better in select spending categories. There is no credit card on the market that currently offers 3% cash back or more on all purchases.
You can maximize your cash back card’s benefits by using it whenever you spend in the categories the card rewards. Always take advantage of other benefits offered with a cash back card, like travel perks, purchase protection and cell phone insurance.
When you redeem cash back rewards is typically up to you. Some cards automatically credit cash back rewards to your account each statement period. Also, keep in mind that some rewards can expire if you don’t use them within a set time or continue to use your card.
The most common cash back bonus categories are travel, dining, gas and groceries. Business cash back cards sometimes include bonus rewards for office supply store purchases and specific services like internet and phone.
Several credit cards offer higher cash back rates in select categories. The Chase Freedom Unlimited credit card earns 5% back on travel purchased through Chase, 3% back at restaurants and drug stores and 1.5% back on all other purchases. The Discover it Cash Back card earns 5% back in quarterly rotating categories plus unlimited 1% back on everything else. The Blue Cash Preferred Card from American Express earns 6% back at U.S. supermarkets up to $6,000 annually and 6% back on streaming services along with lower rates for other spending.
Cash back and points are both valuable forms of credit card rewards. The better option depends on your needs and how you plan to use the rewards you earn. Some credit cards reward you with points that can also be redeemed for cash back along with other redemption options.
Cash back and miles are two types of credit card rewards. How you plan to use your rewards will determine which one is better for you. Miles are typically associated with airline travel rewards credit cards.
If you’re in the market for a business cash back credit card, you need to analyze your company’s spending to determine the best card for you. Also, look for any fees included, whether there’s access to free cards for your employees and any added benefits included with the card.
Cash back credit cards reward you for your everyday spending, unlike using a debit card. Always use cash back cards responsibly, making sure not to spend more than you can afford to pay. Interest charges cause your account balance to skyrocket and quickly negate the rewards you earned.
If you prefer earning cash to travel rewards, take time to compare the best cash back credit cards to find the right one for you.
Next Steps
Now that you are armed with information about the best cash back credit cards, determine if you might benefit by getting one or more cash back cards to capitalize on your spending. When looking for a new card, pay due attention to aspects such as annual fees, cash back rates, welcome bonuses, intro APR offers and added benefits.
Kevin Payne is a personal finance writer specializing in credit cards, banking, and student loans. He is a regular contributor to Forbes Advisor, The Ascent, Investing Answers, and Student Loan Planner. Kevin is the budget and family travel expert behind FamilyMoneyAdventure.com.
*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available. Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity. Advertiser Disclosure: MoneyGeek has partnered with CardRatings.com and CreditCards.com for our coverage of credit card products. MoneyGeek, CardRatings and CreditCards.com may receive a commission from card issuers. To ensure thorough comparisons and reviews, MoneyGeek features products from both paid partners and unaffiliated card issuers that are not paid partners.
