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Cash back credit cards offer an enticing opportunity to earn rewards on everyday purchases. The best cash back credit cards provide a high cash back rate in relevant spending categories, low or no annual fees and a sizeable sign-up bonus. Finding the right cash back card for you depends on your spending habits and whether you want to earn consistent cash back across broad categories or a higher rate in a select few fixed or rotating categories.
Why You Can Trust Our List
Best Cash Back Credit Cards
With the ability to accrue cash rewards on everyday expenses, cash back credit cards have gained immense popularity and have become an essential tool for savvy consumers. 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. Our list of the top cash back credit cards can help you narrow down your choices.
- U.S. Bank Altitude® Go Visa Signature® Card
Solid dining rewards card with no annual fee
- 1–4 Points per $1Rewards Rate
- 18.24% – 29.24% VariableAPR
- $0Annual Fee
- ExcellentRecommended Credit
- Citi Custom Cash℠ Card
A great no-annual-fee cash back card with a unique bonus category system
- 1% – 5% Cash BackRewards Rate
- 19.24% – 29.24% VariableAPR
- $0Annual Fee
- Good–ExcellentRecommended Credit
- Capital One SavorOne Cash Rewards Credit Card
Great no-annual-fee card for diverse spenders
- 0% Intro APR (then variable APR)Balance Transfer Offer
- 15 monthsBalance Transfer Duration
- 19.99% – 29.99% VariableAPR
- 3%Balance Transfer Fee
- Good–ExcellentRecommended Credit
- Blue Cash Preferred® Card from American Express
A great cash back card for gas and grocery shopping
- 3% Cash BackRewards Rate
- 19.24% – 29.99% VariableAPR
- $95Annual Fee
- Good–ExcellentRecommended Credit
- Wells Fargo Active Cash® Card
A great no-annual-fee cash back card with a 0% APR offer
- 2% Cash BackRewards Rate
- 19.99%, 24.99%, or 29.99% VariableAPR
- $0Annual Fee
- Good–ExcellentRecommended Credit
- Capital One Quicksilver Cash Rewards Credit Card
Best for intro APR on balance transfers and purchases with ongoing value
- 0% Intro APR (then variable APR)Balance Transfer Offer
- 15 monthsBalance Transfer Duration
- 19.99%–29.99% VariableAPR
- 3%Balance Transfer Fee
- Good–ExcellentRecommended Credit
- Costco Anywhere Visa® Card by Citi
One of the best cards available for Costco members who spend a lot on gas
- 1–4% Cash Back*Rewards Rate
- 20.49% VariableAPR
- $0Annual Fee
- ExcellentRecommended Credit
- Blue Cash Everyday® Card from American Express
A simple cash back card that’s best for everyday purchases.
- 1–3% Cash Back*Rewards Rate
- 19.24% – 29.99% VariableAPR
- $0Annual Fee
- Good–ExcellentRecommended Credit
- Capital One QuicksilverOne Cash Rewards Credit Card
Best card for earning cash back across categories
- 1.5% Cash BackRewards Rate
- 30.49% VariableAPR
- $39Annual Fee
- Fair–GoodRecommended Credit
- Capital One Spark Cash Plus
Generous flat-rate cash back on business expenses
- 2% Cash BackRewards Rate
- None (charge card)APR
- $150Annual Fee
- ExcellentRecommended Credit
- Citi® Double Cash Card
A great no-annual-fee card that offers up to 2% cash back
- 0% Intro APR (then variable APR)Balance Transfer Offer
- 18 monthsBalance Transfer Duration
- 19.24% – 29.24% VariableAPR
- $5 or 3% whichever is greater; $5 or 5% after first four months*Balance Transfer Fee
- Good–ExcellentRecommended Credit
What Is a Cash Back Credit Card?
A cash back credit card is a type of credit card that rewards you with a certain percentage of your purchases in the form of a cash rebate. These rewards are usually a percentage of the total purchase amount, typically 1% to 5%, depending on the card.
Cash back credit cards provide flexibility to earn rewards on various types of purchases, including groceries, gas, dining, travel, and more. Some cards even offer higher cash back rates for specific spending categories, allowing you to maximize your rewards in areas that align with your spending habits. You can usually redeem your cash rewards in several ways, such as statement credits, direct deposits to a bank account, or even as a gift card.
Benefits of Cash Back Credit Cards
Earn Rewards on Everyday Spending
Cash back credit cards allow you to earn rewards on your everyday purchases, such as groceries, gas, dining, and more. With each transaction, you accumulate cash rewards that can be used to reduce expenses or build up savings.
Flexibile Redemption Options
Cash back rewards can typically be redeemed in various ways, such as statement credits, direct deposits, or checks. This flexibility gives you the freedom to choose how you want to use your earned cash rewards, whether it's paying off your balance or using the funds for other financial purposes.
Potential for Maximizing Rewards
Some cash back credit cards offer higher cash back rates for specific spending categories, such as dining or travel. By strategically using your card in these categories, you can maximize your cash back rewards and earn even more on your preferred purchases.
Drawbacks of Cash Back Credit Cards
Annual Fees
Some cash back credit cards may come with an annual fee, which can eat into your cash back rewards. Do the math to see if the benefits and rewards you earn outweigh the cost of the annual fee.
Reward Caps or Expiration
Certain cash back credit cards may impose limits on the amount of cash back rewards you can earn within a specific timeframe, or require a minimum amount of cash back for redemption. Additionally, rewards may have expiration dates, requiring you to use them within a certain period. Understanding these limitations is crucial to maximizing the benefits of your cash back credit card.
How Do Cash Back Credit Cards Work?
A cash back credit card works by rewarding you with a specific percentage of your spending as 'cash back.' Every time you make an eligible purchase using the card, a certain proportion of the amount, often 1% to 5%, is credited back to you.
The exact percentage can vary depending on the card's structure and the type of purchase. Some cards offer a higher cash back rate for specific fixed categories, like groceries, gas, or dining, while others offer bonus categories that rotate each quarter. You can also get a cash back card with a flat rate on all purchases, regardless of the category - the best offer up to 2% on all spending. As you continue to use your card for purchases, your cash back rewards accumulate in your credit card account. You can see these in a separate rewards balance in your online account.
When it comes to redeeming these rewards, there are several options. The most common is a statement credit, where the cash back is applied to reduce your credit card balance. Alternatively, some issuers might offer to mail a check to you or deposit the cash back directly into a linked bank account. Additional redemption options sometimes include converting your rewards into gift cards for specific retailers or using them to purchase merchandise directly through the issuer's online shopping portal.
Any accrued interest from carrying a balance month to month will likely negate the cash back benefits. So maximizing your cash back credit card requires paying off your balance in full each billing cycle to avoid interest charges
How to Choose a Cash Back Credit Card
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.
Know Your Credit 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. If you can, get pre-qualified for a card. While it's not a guarantee of approval, it can help reduce the impact to your credit score of applying for a card you're unlikely to get approved for.
Think About 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.
Factor in Fees
Consider fees when calculating potential card earnings. That doesn’t mean cards without annual fees are better. A card with lucrative cash back rewards in your biggest spending categories may be well worth an annual fee. Think about how you will use the card and whether the perks and rewards the card offers justify the annual fee.
Consider Other Benefits
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.
"Sometimes the excitement over the possibility of redeeming points causes people to forget the practicality of the offer. The pursuit of points can lead to unmanageable debt, so can the process of redeeming rewards. Getting 5% cash back on groceries is great, but if you end up stocking the refrigerator with food that goes untouched to get that cash-back then it's actually costing you more."
- Bruce McClary, Vice President of Communications, National Foundation for Credit Counseling
Is a Cash Back Credit Card Worth It?
Consider your spending habits when evaluating if a cash back credit card is right for you. You could yield significant rewards if a card's reward categories align with your biggest expenditures. Consider the card's reward redemption options and whether they suit your preferences. Some cards only allow statement credits, while others offer checks, direct deposit, or even gift card and merchandise redemptions. It's also vital to consider the annual fee: rewards must offset this cost to make the card worthwhile.
Who Should Get a Cash Back Credit Card?
- High Spenders: Individuals with large monthly expenditures can benefit significantly from cash back cards. By picking a card that aligns with their biggest spending categories, cardholders can accumulate substantial rewards to offset future purchases or statement balances.
- Routine Shoppers: Those who spend consistently in certain categories, like groceries or gas, can benefit from a card that offers higher cash back rates in those areas. This can provide regular and predictable cash back rewards.
- Disciplined Payers: Those who consistently pay off their balance every month can maximize the benefits of cash back cards, as they avoid the interest charges that could negate the rewards.
Who Shouldn't Get a Cash Back Credit Card?
- Infrequent Credit Card Users: If you rarely use credit cards for purchases, a cash back card might not be ideal, as you may not spend enough to earn meaningful rewards or offset potential annual fees.
- Balance Carriers: If you frequently carry a balance month-to-month, you may not benefit from a cash back card, as the interest charges can quickly overshadow the rewards.
- International Travelers: Many cash back cards charge foreign transaction fees, making them less beneficial for frequent travelers. Moreover, you're likely to get better value from earning points or miles, plus you'll get better travel perks with a travel credit card.
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 2% on all other purchases to earn more cash back.
Common Questions about Cash Back Credit Cards
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.
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?
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About Grace Pilling

sources
- Intuit TurboTax. "Are Cash Back Rewards Taxable Income?." Accessed June 6, 2023.
- Better Money Habits. "What is a credit card cash advance?." Accessed June 6, 2023.
- Chase. "Chase Ultimate Rewards." Accessed June 6, 2023.
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