How does cash back work on credit cards?

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.

Is getting a cash back credit card worth it?

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.

Do you actually get cash from cash back credit cards?

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.

When do you get your annual money back on your credit card?

Cash back rewards are typically credited to your account at the end of a statement period.

What does “cash back rate” mean?

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.

Is cash back the same as a cash advance?

No, a cash advance is cash withdrawn from your credit card account.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.

What is a flat-rate cash back card?

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.

What is a tiered cash back credit card?

A tiered cash back credit card earns cash back at different rates based on specific spending categories like travel, dining, gas and groceries.

What does “rotating cash back categories” mean?

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.

What other credit cards allow you 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.

Is 1.5% cash back good?

Yes, 1.5% cash back is an above-average rate for a flat-rate cash back credit card

Are there 3% or better cash back 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.

How do you maximize the benefits of a cash back credit card?

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 should you redeem your cash back?

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.

What are the most common cash back bonus categories?

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.

Which credit cards pay the most cash back?

Several credit cards offer higher cash back rates in select categories. The [Chase Freedom Unlimited credit card](https://www.moneygeek.com/credit-cards/reviews/chase/chase-freedom-unlimited/) 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.

What are the tax implications of cash back credit cards?

Typically, the IRS [views cash back rewards as a discount](https://www.moneygeek.com/credit-cards/cash-back/advice/is-cash-back-taxable/) or rebate on what you’ve purchased and doesn’t consider them as income.

Is it better to get cash back or points?

[Cash back and points](https://www.moneygeek.com/credit-cards/cash-back/advice/cash-back-vs-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.

Is it better to get cash back or miles?

[Cash back and miles](https://www.moneygeek.com/credit-cards/cash-back/advice/cash-back-vs-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.

What are some things to consider when looking for a business cash back card?

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.

Best Cash Back Credit Cards in 2023

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.

Advertising & Editorial DisclosureLast Updated: 1/24/2023

The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.

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.

	Card Name	Annual Fee	Rewards Rate	Recommended Credit
1.	U.S. Bank Altitude® Go Visa Signature® Card	$0	1–4 Points per $1	Excellent
2.	Chase Freedom Unlimited®	$0	1.5–5% Cash Back	Excellent
3.	Amazon Prime Rewards Visa Signature Card	$0	1% – 5% Cash Back	Good–Excellent
4.	Citi Custom Cash℠ Card	$0	1% – 5% Cash Back	Good–Excellent
5.	Chase Freedom Flex℠	$0	1–5% Cash Back*	Good–Excellent
6.	Capital One SavorOne Cash Rewards Credit Card	$0	3% Cash Back*	Good–Excellent
7.	Blue Cash Everyday® Card from American Express	$0	1–3% Cash Back*	Good–Excellent
8.	Wells Fargo Cash Wise Visa card	$0	2% Cash Back	Good–Excellent
9.	Wells Fargo Active Cash® Card	$0	2% Cash Back	Good–Excellent
10.	American Express Cash Magnet® Card	$0	1.5% Cash Back	Excellent

Some of the links in the table above will take you to one of our partner's sites where you can compare and apply for a selected credit card.

ON THIS PAGE:

Best Cash Back Credit Card Offers
Quick Tips for Comparing Cash Back Credit Card Offers
What You Should Know When Applying for a Cash Back Credit Card
Expert Advice for First-Time or Newer Cash Back Cardholders
Common Questions About Cash Back Credit Cards

Best Cash Back Credit Card 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® Card
Solid dining rewards card with no annual fee
- ExcellentRecommended Credit
- $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 introductory 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, then 19.49% – 28.49% variable APR after the introductory period.
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, then 19.49% – 28.49% variable APR after the introductory period
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 billing cycles because of the introductory 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.
Terms, rates and fees apply
Citi Custom Cash℠ Card
A great no-annual-fee cash back card with a unique bonus category system
- Good–ExcellentRecommended Credit
- $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 $1,500 on purchases within the first six months.
This card offers 5% cash back on purchases of 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, then a variable APR of 18.49% – 28.49%.
Other benefits include free access to your FICO Score and Citi Entertainment.
Pros
$200 cash back after you spend $1,500 within the first six 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, then a variable APR of 18.49% – 28.49%
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 $41
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
Introductory 0% APR applies for 15 months on purchases and balance transfers, then 18.49% – 28.49% variable APR thereafter
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.
Terms, rates and fees apply
Capital One SavorOne Cash Rewards Credit Card
A great no-annual-fee card that comes with rewards
- Good–ExcellentRecommended Credit
- $0Annual Fee
- 3% Cash Back*Rewards Rate
- 3xRewards Rate on Entertainment
- 2xRewards Rate on Groceries
We love the no-annual-fee Capital One SavorOne Cash Rewards Credit Cardbecause 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, then a variable APR of 17.99% - 27.99% thereafter 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
Earn 3% cash back on entertainment, dining, popular streaming services and at grocery stores
Earn 1% cash back on all other purchases
Earn 8% cash back when you book tickets through Vivid Seats
Earn a $200 cash bonus if you spend $500 on purchases within the first three months
Earn 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
The APR that applies on purchases after the first 15 months is based on your creditworthiness
Cash advance fee
Balance transfer fee
$0 annual fee
0% intro APR on purchases and balance transfers for the first 15 months, then 19.24% – 29.24% variable APR after that
3% cash back on dining, entertainment, popular streaming services and at grocery stores
1% cash back on all other purchases
Earn 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.
Terms, rates and fees apply
Blue Cash Everyday® Card from American Express
A simple cash back card that’s best for everyday purchases.
- Good–ExcellentRecommended Credit
- $0Annual Fee
- 1–3% Cash Back*Rewards Rate
- 1xRewards Rate on Gas
- 1xRewards Rate on Groceries
We love the Blue Cash Everyday® Card from American Express 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 on grocery purchases at U.S. supermarkets each year. The same also applies on U.S. online retail purchases and gas purchases at U.S. gas stations. You earn 1% cash back on all other purchases.
A welcome offer lets you earn up to $200 back by spending $2,000 on purchases in your first six months to receive $100 as a statement credit. This card also comes with an introductory 0% APR on purchases for the first 15 months, then a variable APR of 18.49% – 29.49% after.
Using this card outside of the U.S. might not a good idea because it charges foreign transaction fees.
Pros
Competitive cash back rates on supermarkets, gas and online retail purchases in the U.S.
No annual fees
Decent welcome bonus
Low intro APR with a long introductory period
Split purchases of more than $100 into monthly payments through the Plan It feature

Cons
Minimum redemption amount is required
Spending cap on cash back earned through bonus categories
Not ideal for travel due to foreign transaction fees
3% cash back on groceries at U.S. supermarkets on up to $6,000 in purchases per year, then 1% cash back
3% cash back on U.S. online retail purchases on up to $6,000 in purchases per year, then 1% cash backk
3% cash back on gas at U.S. gas stations on up to $6,000 in purchases per year, then 1% cash back
1% cash back on all other purchases
0% intro APR for the first 15 months from account opening, then a variable APR of 18.49% – 29.49% after.
Earn up to $200 back by spending $2,000 on purchases in your first six months of account opening. 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.
Terms, rates and fees apply
Wells Fargo Active Cash® Card
A great no-annual-fee cash back card with a 0% APR offer
- Good–ExcellentRecommended Credit
- $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 or checking or mortgage account; you may redeem it through ATMs or use it to purchase gift cards.
Additional benefits come in the form of cellphone 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% introductory 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.
Terms, rates and fees apply
American Express Cash Magnet® Card
A great no-annual-fee card that comes with unlimited 1.5% cash back across categories
- ExcellentRecommended Credit
- $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 a variable APR of 18.49% – 29.49% 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 18.49% – 29.49%
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.
Terms, rates and fees apply

The Best Cash Back Credit Cards at a Glance

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Other Cards to Consider

Best Rewards Cards

Best Travel Rewards Cards

Best Cash Back Credit Cards

HOW WE RANK CASH BACK CREDIT CARDS

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.

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.

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.

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.

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 Card and Chase Sapphire Preferred Card, 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

Founder & CEO at Odynn

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

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.

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.

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.

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 Card 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.

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.

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About Kevin Payne

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.

sources

Intuit TurboTax. "Are Cash Back Rewards Taxable Income?." Accessed March 18, 2021.
Better Money Habits. "What is a credit card cash advance?." Accessed March 18, 2021.
Chase. "Ink Business Cash® Credit Card." Accessed March 18, 2021.
Chase. "Chase Freedom Flex℠ Credit Card." Accessed March 18, 2021.
Chase. "Chase Ultimate Rewards." Accessed March 18, 2021.
Chase. "Chase Sapphire Preferred Card credit card." Accessed March 18, 2021.
Chase. "Chase Sapphire Reserve Card." Accessed March 18, 2021.
Deserve. "Deserve EDU." Accessed March 18, 2021.
Deserve. "Deserve® EDU Cardholder Agreement." Accessed March 18, 2021.
Credit One Bank. "Platinum Visa." Accessed March 18, 2021.
Credit One Bank. "Choosing a Credit Card." Accessed March 18, 2021.
American Express. "Blue Cash Preferred Card." Accessed March 18, 2021.

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