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September 29, 2021
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Cash back credit cards are incredibly popular and for good reason. They offer straightforward rewards and can help you earn anywhere from 1% to 6% back when you make a purchase with the card.
We’ll examine our top pick, the Wells Fargo Active Cash℠ Card, in greater detail, as well as consider eight other cash back cards that excel in various categories.
| Best Cash Back Credit Cards of October 2021 | |
| Best overall cash back credit card | Wells Fargo Active Cash℠ Card |
| Best for a long intro APR on balance transfers | Citi® Double Cash Card – 18 month BT offer |
| Best for rotating 5% cash back categories | Chase Freedom Flex℠ |
| Best for dining out, entertainment and groceries | Capital One SavorOne Cash Rewards Credit Card |
| Best for U.S. supermarket spending | Blue Cash Preferred® Card from American Express |
| Best for customizing cash back categories | Bank of America® Customized Cash Rewards credit card |
| Best for cash back on Amazon shopping | Amazon Prime Rewards Visa Signature Card |
| Best for no foreign transaction fee | SDFCU Premium Cash Back+ Credit Card |
| Best for military members | USAA® Cashback Rewards Plus American Express® Card |
With the Wells Fargo Active Cash℠ Card, you’ll earn unlimited 2% cash rewards on purchases, which can be redeemed as a statement credit, as a credit to a qualified Wells Fargo loan, mortgage or other credit account, or in $20 increments at a Wells Fargo ATM or for gift cards.
There’s also a sign-up bonus — earn a $200 cash rewards bonus after spending $1,000 on purchases in the first 3 months. And if you pay your monthly cellphone bill with this card, you’ll get up to $600 worth of cell phone protection (subject to a $25 deductible).
The Wells Fargo Active Cash℠ Card is an excellent choice if you want to earn flat-rate rewards without worrying about different categories. It also comes with strong intro APR periods on both purchases and balance transfers — so whether you need to finance a big purchase and pay it off over time, or transfer a balance from another card, the Wells Fargo Active Cash℠ Card can help you do that.
Enjoy a 0% intro APR for 15 months from account opening. After, a 14.99%-24.99% (variable) APR applies.
And when it comes to transferring debt from a non-Wells Fargo card, this card also has a 0% intro APR for 15 months from account opening on qualifying balance transfers. After that, a 14.99%-24.99% (variable) APR applies. There’s a balance transfer fee of 3% intro for 120 days from account opening, then up to 5%; min: $5.
Just know that if you opened a Wells Fargo credit card in the past 15 months and received an intro APR and/or a bonus, you might not qualify for intro APR and/or a bonus on this card. And if you opened another Wells Fargo credit card in the past six months, your application for this card might be denied.
Also, if traveling abroad, beware the 3% foreign transaction fee.
With the Wells Fargo Active Cash℠ Card, you’ll earn unlimited 2% cash rewards on purchases, which can be redeemed as a statement credit, as a credit to a qualified Wells Fargo loan, mortgage or other credit account, or in $20 increments at a Wells Fargo ATM or for gift cards.
There’s also a sign-up bonus — earn a $200 cash rewards bonus after spending $1,000 on purchases in the first 3 months. And if you pay your monthly cellphone bill with this card, you’ll get up to $600 worth of cell phone protection (subject to a $25 deductible).
The Wells Fargo Active Cash℠ Card is an excellent choice if you want to earn flat-rate rewards without worrying about different categories. It also comes with strong intro APR periods on both purchases and balance transfers — so whether you need to finance a big purchase and pay it off over time, or transfer a balance from another card, the Wells Fargo Active Cash℠ Card can help you do that.
Enjoy a 0% intro APR for 15 months from account opening. After, a 14.99%-24.99% (variable) APR applies.
And when it comes to transferring debt from a non-Wells Fargo card, this card also has a 0% intro APR for 15 months from account opening on qualifying balance transfers. After that, a 14.99%-24.99% (variable) APR applies. There’s a balance transfer fee of 3% intro for 120 days from account opening, then up to 5%; min: $5.
Just know that if you opened a Wells Fargo credit card in the past 15 months and received an intro APR and/or a bonus, you might not qualify for intro APR and/or a bonus on this card. And if you opened another Wells Fargo credit card in the past six months, your application for this card might be denied.
Also, if traveling abroad, beware the 3% foreign transaction fee.
Cardholders with the Citi® Double Cash Card earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. This is a great flat rate on all purchases and provides an incentive to pay your bill on time.
Note that you can earn the 1% as you pay even by making the minimum payment due. If you miss a payment, however, you’ll miss the cash back you would have earned.
You can redeem cash back for checks, statement credits, or deposits to a bank account, or you can convert your cash back to Citi ThankYou® points (which can be redeemed for gift cards, travel purchases at select retailers and more).
However, if you want a card that gives you all your cash back up front (that is, upon making a purchase), competing 2% cashback cards include the Fidelity® Rewards Visa Signature® Card, the PayPal Cashback Mastercard® and the Wells Fargo Active Cash℠ Card.
The Citi® Double Cash Card offers a lengthy intro 0% for 18 months on balance transfers, after which an APR of 13.99% – 23.99% (variable) applies. The balance transfer fee is a reasonable 3% of each balance transfer; $5 minimum. If you’re carrying high-interest debt on a non-Citi card, transferring it to the Citi® Double Cash Card could help you get out of debt.
Plus, this card is also a standout choice to keep on hand after paying off your transferred debt. It earns a flat cashback rate on all purchases, so you know what you’re going to earn without worrying about different rates for different categories.
The annual fee is $0. However, there’s a 3% foreign transaction fee, so this isn’t the best card to take when traveling abroad.
This card also lacks a sign-up bonus, so it might not be the best choice if you’re looking to make a big purchase and are hoping to earn a bonus on your new card to offset the purchase cost.
Cardholders with the Citi® Double Cash Card earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. This is a great flat rate on all purchases and provides an incentive to pay your bill on time.
Note that you can earn the 1% as you pay even by making the minimum payment due. If you miss a payment, however, you’ll miss the cash back you would have earned.
You can redeem cash back for checks, statement credits, or deposits to a bank account, or you can convert your cash back to Citi ThankYou® points (which can be redeemed for gift cards, travel purchases at select retailers and more).
However, if you want a card that gives you all your cash back up front (that is, upon making a purchase), competing 2% cashback cards include the Fidelity® Rewards Visa Signature® Card, the PayPal Cashback Mastercard® and the Wells Fargo Active Cash℠ Card.
The Citi® Double Cash Card offers a lengthy intro 0% for 18 months on balance transfers, after which an APR of 13.99% – 23.99% (variable) applies. The balance transfer fee is a reasonable 3% of each balance transfer; $5 minimum. If you’re carrying high-interest debt on a non-Citi card, transferring it to the Citi® Double Cash Card could help you get out of debt.
Plus, this card is also a standout choice to keep on hand after paying off your transferred debt. It earns a flat cashback rate on all purchases, so you know what you’re going to earn without worrying about different rates for different categories.
The annual fee is $0. However, there’s a 3% foreign transaction fee, so this isn’t the best card to take when traveling abroad.
This card also lacks a sign-up bonus, so it might not be the best choice if you’re looking to make a big purchase and are hoping to earn a bonus on your new card to offset the purchase cost.
Earn 5% cash back on eligible purchases in rotating categories, 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on all other purchases. Check out the 5% cashback categories announced for 2021 so far.
Plus, the sign-up bonus is generous for having such a low spending requirement: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year. Plus, if you need to pay off a big purchase over time, you’ll appreciate the 0% Intro APR on Purchases for 15 months, after which a 14.99% - 23.74% variable APR applies.
Finally, get cell phone protection of up to $800 per claim and $1,000 per year. Note that there’s a maximum of two claims per 12-year period and each claim is subject to a $50 deductible.
If you want a solid ongoing cashback rate on dining and drugstore purchases, and your spending also lines up well with the rotating categories, the Chase Freedom Flex℠ offers the chance to earn generous cash back. Just remember to activate the new bonus category every quarter, and be aware that after spending $1,500 in the quarterly category, your earning rate for such purchases will drop to 1% (meaning you can earn up to $75 cash back at the elevated rate each quarter).
Examples of Chase’s bonus categories have included:
The Chase Freedom Flex℠ does charge a 3% of each transaction in U.S. dollars foreign transaction fee, so leave it at home if traveling outside the country. Also, before applying, make sure you’re aware of the Chase 5/24 rule — an unwritten rule that essentially means Chase will deny your application for a card if you’ve opened five or more cards from any issuer in the past 24 months.
Earn 5% cash back on eligible purchases in rotating categories, 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on all other purchases. Check out the 5% cashback categories announced for 2021 so far.
Plus, the sign-up bonus is generous for having such a low spending requirement: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year. Plus, if you need to pay off a big purchase over time, you’ll appreciate the 0% Intro APR on Purchases for 15 months, after which a 14.99% - 23.74% variable APR applies.
Finally, get cell phone protection of up to $800 per claim and $1,000 per year. Note that there’s a maximum of two claims per 12-year period and each claim is subject to a $50 deductible.
If you want a solid ongoing cashback rate on dining and drugstore purchases, and your spending also lines up well with the rotating categories, the Chase Freedom Flex℠ offers the chance to earn generous cash back. Just remember to activate the new bonus category every quarter, and be aware that after spending $1,500 in the quarterly category, your earning rate for such purchases will drop to 1% (meaning you can earn up to $75 cash back at the elevated rate each quarter).
Examples of Chase’s bonus categories have included:
The Chase Freedom Flex℠ does charge a 3% of each transaction in U.S. dollars foreign transaction fee, so leave it at home if traveling outside the country. Also, before applying, make sure you’re aware of the Chase 5/24 rule — an unwritten rule that essentially means Chase will deny your application for a card if you’ve opened five or more cards from any issuer in the past 24 months.
This card earns an unlimited 3% Cash Back on dining and entertainment; 3% Cash Back on popular streaming services; 3% Cash Back at grocery stores; 1% Cash Back on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through January 2023 That’s one of the highest cashback rates on dining and entertainment that you’ll find on a card with a $0 annual fee.
Plus, the sign-up bonus offers great value for a low spending requirement: Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening.
Finally, enjoy an intro APR of 0% intro on purchases for 15 months, after which an APR of 14.99% - 24.99% (variable) will apply.
Avid foodies will love the SavorOne’s rewards for dining and grocery store purchases, while those who enjoy events such as going to a movie or a sports event can appreciate earning cash back on entertainment expenses.
Plus, the foreign transaction fee is none. That means if you’re planning a trip abroad and want to experience all the culinary goodies your vacation destination has to offer, the SavorOne is an excellent card to keep in your wallet.
This card earns an unlimited 3% Cash Back on dining and entertainment; 3% Cash Back on popular streaming services; 3% Cash Back at grocery stores; 1% Cash Back on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through January 2023 That’s one of the highest cashback rates on dining and entertainment that you’ll find on a card with a $0 annual fee.
Plus, the sign-up bonus offers great value for a low spending requirement: Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening.
Finally, enjoy an intro APR of 0% intro on purchases for 15 months, after which an APR of 14.99% - 24.99% (variable) will apply.
Avid foodies will love the SavorOne’s rewards for dining and grocery store purchases, while those who enjoy events such as going to a movie or a sports event can appreciate earning cash back on entertainment expenses.
Plus, the foreign transaction fee is none. That means if you’re planning a trip abroad and want to experience all the culinary goodies your vacation destination has to offer, the SavorOne is an excellent card to keep in your wallet.
With the Blue Cash Preferred® Card from American Express, you can earn 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), 1% Cash Back on other purchases. Terms apply.
There’s also a welcome offer, though the spending requirement is on the high side: $300 back after you spend $3,000 in purchases on your new card within the first 6 months.
Cash back can be redeemed as a statement credit. The card comes with a $0 introductory annual fee for the first year, then $95 annual fee.
To see rates and fees for the Blue Cash Preferred® Card from American Express, please click here.
For consumers whose budgets include a significant amount of grocery shopping, streaming, and gas or transit costs, the Blue Cash Preferred® Card from American Express is well worth paying a $0 introductory annual fee for the first year, then $95. It takes $1,584 in spending per year on categories that earn 6% back to recoup the amount of the annual fee (after year one) and then what you earn is net cash back in your wallet, assuming you don’t accrue interest charges or other fees.
Be aware that the elevated rate on U.S. supermarket purchases is capped at $6,000 spent per year, after which your rate will drop to 1%. Still, if you max that out (which would require spending $500 a month), that’s $360 in cash back.
If you’re thinking about taking this card abroad with you, however, know that there’s a foreign transaction fee of 2.7% of each transaction after conversion to US dollars.
To see rates and fees for the Blue Cash Preferred® Card from American Express, please click here.
With the Blue Cash Preferred® Card from American Express, you can earn 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), 1% Cash Back on other purchases. Terms apply.
There’s also a welcome offer, though the spending requirement is on the high side: $300 back after you spend $3,000 in purchases on your new card within the first 6 months.
Cash back can be redeemed as a statement credit. The card comes with a $0 introductory annual fee for the first year, then $95 annual fee.
To see rates and fees for the Blue Cash Preferred® Card from American Express, please click here.
For consumers whose budgets include a significant amount of grocery shopping, streaming, and gas or transit costs, the Blue Cash Preferred® Card from American Express is well worth paying a $0 introductory annual fee for the first year, then $95. It takes $1,584 in spending per year on categories that earn 6% back to recoup the amount of the annual fee (after year one) and then what you earn is net cash back in your wallet, assuming you don’t accrue interest charges or other fees.
Be aware that the elevated rate on U.S. supermarket purchases is capped at $6,000 spent per year, after which your rate will drop to 1%. Still, if you max that out (which would require spending $500 a month), that’s $360 in cash back.
If you’re thinking about taking this card abroad with you, however, know that there’s a foreign transaction fee of 2.7% of each transaction after conversion to US dollars.
To see rates and fees for the Blue Cash Preferred® Card from American Express, please click here.
Bank of America® Customized Cash Rewards credit card details updated Sept. 9, 2021
Earn 3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale clubs (for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), 1% cash back on all other purchases. Categories you can choose from to earn 3% cash back on include the following:
You have the option to change your 3% cash back category each month.
There’s also a solid sign-up bonus — earn a $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
This card also comes with solid intro APR on both purchases and balance transfers: 0% Intro APR for 15 billing cycles for purchases, after which a 13.99% - 23.99% Variable APR applies.
And 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days, after which a 13.99% - 23.99% Variable APR applies. The balance transfer fee is either $10 or 3% of the amount of each transaction, whichever is greater.
This card charges a $0 annual fee.
If you’re a road warrior who’s looking to offset some fuel costs, or if you want a flexible card that lets you choose your 3% category, the Bank of America® Customized Cash Rewards credit card is a great card to have in your wallet. It’s even better if you’re a Bank of America Preferred Rewards member — you’ll earn 25% to 75% more cash back on every purchase.
Just be aware of the quarterly spending cap on the higher rewards rates. If you max out the $2,500 spending cap on purchases earning 3% back, you can earn $75 in cash back per quarter.
Beware there’s a 3% foreign transaction fee, so there are better cards to take with you if you’re planning to travel internationally.
Bank of America® Customized Cash Rewards credit card details updated Sept. 9, 2021
Earn 3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale clubs (for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), 1% cash back on all other purchases. Categories you can choose from to earn 3% cash back on include the following:
You have the option to change your 3% cash back category each month.
There’s also a solid sign-up bonus — earn a $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
This card also comes with solid intro APR on both purchases and balance transfers: 0% Intro APR for 15 billing cycles for purchases, after which a 13.99% - 23.99% Variable APR applies.
And 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days, after which a 13.99% - 23.99% Variable APR applies. The balance transfer fee is either $10 or 3% of the amount of each transaction, whichever is greater.
This card charges a $0 annual fee.
If you’re a road warrior who’s looking to offset some fuel costs, or if you want a flexible card that lets you choose your 3% category, the Bank of America® Customized Cash Rewards credit card is a great card to have in your wallet. It’s even better if you’re a Bank of America Preferred Rewards member — you’ll earn 25% to 75% more cash back on every purchase.
Just be aware of the quarterly spending cap on the higher rewards rates. If you max out the $2,500 spending cap on purchases earning 3% back, you can earn $75 in cash back per quarter.
Beware there’s a 3% foreign transaction fee, so there are better cards to take with you if you’re planning to travel internationally.
Earn 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership, 2% back at restaurants, gas stations and drugstores and 1% back on all other purchases. Plus, get a $100 Amazon Gift Card instantly upon approval.
The annual fee is $0 and the APR is 14.24%-22.24% variable.
If you do much of your online shopping at Amazon, getting the Amazon Prime Rewards Visa Signature Card could be a no-brainer — it charges a $0 annual fee and earns cash back at a generous rate. For those who already have an Amazon Prime membership, it’s hard to think of a downside. But if you don’t have a Prime membership, you’d only qualify for the Amazon Rewards Visa Signature Card , which earns cash back at a lower rate.
To decide if this card is worth the cost of a Prime membership ($119 for a regular annual membership, $59 for an annual membership at the college student rate), note that you’d need to spend $2,380 on purchases earning 5% back to recoup the cost of a regular membership and $1,180 to recoup the cost of a student membership.
Earn 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership, 2% back at restaurants, gas stations and drugstores and 1% back on all other purchases. Plus, get a $100 Amazon Gift Card instantly upon approval.
The annual fee is $0 and the APR is 14.24%-22.24% variable.
If you do much of your online shopping at Amazon, getting the Amazon Prime Rewards Visa Signature Card could be a no-brainer — it charges a $0 annual fee and earns cash back at a generous rate. For those who already have an Amazon Prime membership, it’s hard to think of a downside. But if you don’t have a Prime membership, you’d only qualify for the Amazon Rewards Visa Signature Card , which earns cash back at a lower rate.
To decide if this card is worth the cost of a Prime membership ($119 for a regular annual membership, $59 for an annual membership at the college student rate), note that you’d need to spend $2,380 on purchases earning 5% back to recoup the cost of a regular membership and $1,180 to recoup the cost of a student membership.
Earn a flat rate of 2% cash back on eligible purchases. Plus, there’s a sign-up bonus of $200 if you spend $3,000 in the first 90 days. The spending requirement is a little steep compared to other cash back card bonuses.
With the $0 annual fee and $0 foreign transaction fee, you can confidently reach for the SDFCU Premium Cash Back+ Credit Card whether spending close to home or while traveling abroad.
The APR is also quite reasonable at 9.24% - 15.24% variable.
With a solid flat-rate cash back rate and a $0 foreign transaction fee, the SDFCU Premium Cash Back+ Credit Card is a great card for frequent travelers and expats. It’s also a Visa card, meaning you’re likely to find wide acceptance wherever your travels take you.
Note that you have to join State Department Federal Credit Union in order to apply for the card. Some ways to qualify for membership include:
Earn a flat rate of 2% cash back on eligible purchases. Plus, there’s a sign-up bonus of $200 if you spend $3,000 in the first 90 days. The spending requirement is a little steep compared to other cash back card bonuses.
With the $0 annual fee and $0 foreign transaction fee, you can confidently reach for the SDFCU Premium Cash Back+ Credit Card whether spending close to home or while traveling abroad.
The APR is also quite reasonable at 9.24% - 15.24% variable.
With a solid flat-rate cash back rate and a $0 foreign transaction fee, the SDFCU Premium Cash Back+ Credit Card is a great card for frequent travelers and expats. It’s also a Visa card, meaning you’re likely to find wide acceptance wherever your travels take you.
Note that you have to join State Department Federal Credit Union in order to apply for the card. Some ways to qualify for membership include:
Earn 5% cash back on your first $3,000 in gas and military base purchases annually on these categories combined. Earn 2% on your first $3,000 on supermarket purchases per year. Unlimited 1% cash back on all other purchases. There’s no sign-up bonus, but this card’s cashback rate on gas purchases is excellent. If you max out the $3,000 spending cap each year, that’s $150 in cash back.
The annual fee is $0 and the APR is 11.90% - 25.90% variable.
The USAA® Cashback Rewards Plus American Express® Card offers among the top cashback rates on gas purchases that we’re aware of. It’s true there’s a spending cap on the 5% rate, but it would take spending around $250 a month on gas to hit that cap. If you’re on the road frequently, this card can reward you well for it.
Note that you must join USAA to be able to apply for the card. Folks who are eligible for USAA membership include:
Earn 5% cash back on your first $3,000 in gas and military base purchases annually on these categories combined. Earn 2% on your first $3,000 on supermarket purchases per year. Unlimited 1% cash back on all other purchases. There’s no sign-up bonus, but this card’s cashback rate on gas purchases is excellent. If you max out the $3,000 spending cap each year, that’s $150 in cash back.
The annual fee is $0 and the APR is 11.90% - 25.90% variable.
The USAA® Cashback Rewards Plus American Express® Card offers among the top cashback rates on gas purchases that we’re aware of. It’s true there’s a spending cap on the 5% rate, but it would take spending around $250 a month on gas to hit that cap. If you’re on the road frequently, this card can reward you well for it.
Note that you must join USAA to be able to apply for the card. Folks who are eligible for USAA membership include:
| Credit card | Best for | Cashback rate | Annual fee |
|---|---|---|---|
| Wells Fargo Active Cash℠ Card | Overall | Earn unlimited 2% cash rewards on purchases | $0 |
| Citi® Double Cash Card | Intro APR on balance transfers | Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. | $0 |
| Chase Freedom Flex℠ | Rotating 5% categories | Earn 5% cash back on eligible purchases in rotating categories, 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on all other purchases. | $0 |
| Capital One SavorOne Cash Rewards Credit Card | Dining out, entertainment and groceries | 3% Cash Back on dining and entertainment; 3% Cash Back on popular streaming services; 3% Cash Back at grocery stores; 1% Cash Back on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through January 2023 | $0 |
| Blue Cash Preferred® Card from American Express | U.S. supermarket spending | 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), 1% Cash Back on other purchases. Terms apply. | $0 introductory annual fee for the first year, then $95 |
| Bank of America® Customized Cash Rewards credit card | Customizing categories | 3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale clubs (for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), 1% cash back on all other purchases | $0 |
| Amazon Prime Rewards Visa Signature Card | Amazon shopping | 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership, 2% back at restaurants, gas stations and drugstores and 1% back on all other purchases. | $0 |
| SDFCU Premium Cash Back+ Credit Card | No foreign transaction fee | 2% cash back | $0 |
| USAA® Cashback Rewards Plus American Express® Card | Military members | Earn 5% cash back on your first $3,000 in gas and military base purchases annually on these categories combined. Earn 2% on your first $3,000 on supermarket purchases per year. Unlimited 1% cash back on all other purchases. | $0 |
If you pay your balance off in full every month, then yes — cash back credit cards are worth using. For example, if you spend $1,000 per month on a card that earns a flat 2% cash back, that’s $20 in cash back. However, know that if you carry a balance, interest charges will likely outweigh any cash back you earn, especially because some cash back cards have higher APRs than simple, no-frills credit cards.
It’s also important to consider whether or not the card you’re thinking about applying for charges an annual fee, and how much you’d have to spend on the card to recoup the amount of the annual fee in rewards. For instance, the Blue Cash Preferred® Card from American Express charges a $0 introductory annual fee for the first year, then $95 annual fee. If you spend at least $132 a month on purchases that earn 6% cash back, you’ll recoup the amount of the annual fee after year one.
To see rates and fees for the Blue Cash Preferred® Card from American Express, please click here.
To maximize the cash back you earn, we recommend pairing two or more cash back credit cards. First, choose a card based on your typical spending patterns. For example, those who spend heavily on gas could consider the Bank of America® Customized Cash Rewards credit card. Then, if you add a flat-rate card, you can use that for purchases that don’t earn an elevated rate on the first card, such as the Wells Fargo Active Cash℠ Card or the Citi® Double Cash Card .
Also, make sure you understand any circumstances where your cash back might expire. If there are, you should plan to redeem it before then, otherwise you’re leaving money on the table. For consumers who don’t like to redeem credit card rewards frequently, a card with rewards that don’t expire as long as your account is open and in good standing will be the best choice.
A credit card that earns rewards in the form of cash back — in the form of a percentage of your purchase amount — is a cash back credit card. By contrast, some credit cards earn rewards in the form of points or miles, and some don’t earn rewards at all.
There are different rewards structures for cash back cards, with some earning a flat rate on every purchase, others earning elevated rates for purchases in certain categories, and still others offering rotating bonus categories that change every quarter.
One nice thing about cash back cards is the simplicity of the rewards you earn. When you earn points or miles, you have to evaluate what each point or mile is worth for different redemption options. But if you earn a certain percentage of cash back, you know immediately what that cash back will be worth when you redeem it.
Typically, you can redeem cash back for checks, statement credits, deposits into an eligible bank account or gift cards. Some cards allow you to redeem cash back in any amount, while others have a minimum redemption amount of $25.
There are cards that offer cash back with no spending limits. Other cards set a limit on how much cash back you can earn at higher rates, then drop you down to a 1% cashback rate once you hit quarterly or annual spending maximums.
The credit card that will allow you to earn the most cash back depends on your spending patterns and whether you prefer a flat-rate card that offers 1.5% to 2% cash back on every purchase, a card that earns 5% cash back in rotating categories (up to a quarterly maximum) or a card that offers a higher cash back rate in popular spending categories, such as gas, dining or supermarkets.
For example, the Blue Cash Everyday® Card from American Express earns 6% cash back in certain categories — but if your budget doesn’t include much spending in those categories, you might prefer a card that earns 2% back on all purchases, like the Citi® Double Cash Card .
That depends on what you want to get out of the card. For example, if you want to earn rewards to help offset the cost of travel, a card that offers points or miles may be the better choice. But if you don’t travel much, you’ll most likely have an easier time tracking the value of your rewards with a cash back credit card.
Typically, cash back earned on a credit card is not taxable because the IRS considers it a rebate on what you’ve spent. However, if you receive a bonus without having to do any spending to earn it, that’s considered taxable income.
We selected the best cash back credit cards through a review of cards available on LendingTree and from top issuers. Factors included cash back rates, cashback program structure, and sign-up bonuses.
Additional factors included whether or not cards charge a foreign transaction fee and/or an annual fee — most of the cards on this list charge no annual fee or charge a reasonable fee that can be easily recouped by spending in cash back categories.
Introductory APR also factored into our selection, with many of the cards on this list offering interest-free periods that can help finance a big purchase or pay off a transferred balance. Finally, useful benefits such as cell phone protection and extended warranty protection influenced our choices as well.
To see rates and fees for the Blue Cash Preferred® Card from American Express, please click here.
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
