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The $0-annual-fee Capital One SavorOne Cash Rewards Credit Card lets you earn a generous cash back rate in a variety of everyday spending categories, as well as a boosted rate on Capital One Entertainment purchases.
If you’re looking for a simple way to rake in rewards on purchases, you should consider a cash back credit card. These cards offer anywhere from 1% to 6% cash back on purchases, provide easy redemption options and often feature valuable sign-up bonuses and other perks. The best cash back credit cards provide rewards that match your spending habits, and can put hundreds of dollars back in your wallet each year.
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Rewards rate: 1%-8% cash back on dining, entertainment, grocery stores and all other purchases
The Capital One SavorOne Cash Rewards Credit Card is one of the most rewarding cash back cards, due to its generous bonuses on dining, entertainment and groceries — including a whopping 8% back on Capital One Entertainment purchases. It also comes with a solid welcome offer and an intro APR on purchases and balance transfers (a balance transfer fee applies). Further, the Capital One SavorOne Cash Rewards Credit Card is a great option if you’re looking to finance a large purchase or pay off credit card debt.
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Rewards rate: 1.5%-5% cash back on Chase travel, drugstore purchases, dining and all other purchases
In addition to its solid cash back rate on everyday purchases, the Chase Freedom Unlimited® offers elevated rates on popular spending categories, including travel and dining. Plus, you can get even more value from your rewards when you transfer them to an Ultimate Rewards® card (like the Chase Sapphire Reserve®) and redeem for travel through Chase’s portal. In addition, the Chase Freedom Unlimited® comes with an intro APR on purchases and balance transfers, as well as a generous welcome offer.
Rewards rate: 2% cash back on all purchases
The Wells Fargo Active Cash® Card is currently the only 2% cash back card that comes with a sign-up bonus. New cardholders can earn unlimited 2% cash rewards on purchases. Plus, there are no restrictions on earning the full 2% — unlike its closest competitor, the Citi Double Cash® Card. Available to anyone with excellent/good credit, the Wells Fargo Active Cash® Card also boasts a $0 annual fee, cellphone protection and an intro APR on purchases and balance transfers.
Rewards rate: 1%-3% cash back on purchases made at U.S. supermarkets, U.S. gas stations, U.S. online retail stores and everywhere else
To see rates & fees for Blue Cash Everyday® Card from American Express please click here.
The Blue Cash Everyday® Card from American Express lets you earn a high cash back rate in a variety of popular spending categories, like U.S. supermarkets and U.S. gas stations. Though the 3% categories are each capped at $6,000 in purchases per year, you’ll earn at least $540 in cash back rewards if you max out each category. And with a $0 annual fee, you can redeem your rewards for statement credits without cutting into your rewards.
Rewards rate: 1%-5% cash back on rotating categories, Chase travel, dining, drugstore purchases and everything else
If you like earning a high cash back rate in categories that rotate each quarter, the $0-annual-fee Chase Freedom Flex℠ is tough to beat. On top of its rotating bonus categories, it also offers an ongoing bonus rate on dining, drugstores and Chase travel purchases — giving it an edge over the Discover it® Cash Back. The Chase Freedom Flex℠ also comes with a long intro APR on purchases and balance transfers and a valuable sign-up bonus.
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Rewards rate: 1%-5% cash back on office supply store purchases, phone and internet services, gas station purchases, restaurants and all other purchases
With a high cash back rate at office supply stores and on internet, cable and phone services, the Ink Business Cash® Credit Card is one of the most rewarding cards for business purchases. If you max out the $25,000 spend cap on the 5% earning category, you’ll earn $1,250 back on those purchases. Plus, you’ll earn $500 back if you max out the $25,000 spend cap on the 2% earning categories. The Ink Business Cash® Credit Card also comes with an intro APR on purchases, which could be especially beneficial for new business owners with a lot of up-front expenses.
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Rewards rate: 1.5%-5% cash back on hotels and rentals cars booked through Capital One Travel and all other purchases
Naturally, travel credit cards offer the most value for frequent flyers and road warriors. However, the $0-annual-fee Capital One Quicksilver Cash Rewards Credit Card is a solid choice if you’re looking for a simple cash back card for travel. It comes with basic travel protections, no foreign transaction fees and elevated rates on hotels and rental cars booked through Capital One Travel. Plus, you’ll always get the best deals on flights and hotels, thanks to Capital One Travel’s price match guarantee.
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Rewards rate: 1%-5% cash back on top spending categories and all other purchases
The Citi Custom Cash® Card is an ideal choice if you’re looking for a cash back card you can dedicate toward gas purchases. With its unique rewards program, you can earn 5% cash back on your highest spend category each month (up to $500). This means that if you max out the $500 spending cap each billing cycle, you can earn $300 back on gas purchases in a year. Plus, you’ll earn unlimited 1% cash back on all other purchases.
Rewards rate: 1%-6% cash back on U.S. supermarket purchases, U.S. streaming subscriptions, U.S. gas station purchases, transit and all other purchases
To see rates & fees for Blue Cash Preferred® Card from American Express please click here.
The Blue Cash Preferred® Card from American Express offers the highest cash back rate at U.S. supermarkets currently available. If you max out the $6,000 spend cap on those purchases, you’ll get $360 back each year, which you can redeem for statement credits. There’s also an elevated cash back rate on select U.S. streaming subscriptions, U.S. gas station purchases and transit. Plus, you’ll get a valuable sign-up bonus you can use to offset the card’s annual fee.
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Rewards rate: 1%-5% cash back on rotating quarterly categories and all other purchases
Our pick for the best student credit card, the $0-annual-fee Discover it® Student Cash Back also doubles as a great cash back card. It lets you earn an elevated rate of cash back on rotating quarterly bonus categories like grocery stores, restaurants and gas stations — just remember that you’ll have to activate the spending categories each quarter. You’ll also earn 1% cash back on purchases that don’t fall within the quarterly bonus categories, as well as an Unlimited Cashback Match bonus.
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Rewards rate: 1%-2% cash back at gas stations, restaurants and all other stores
If you’re looking to earn cash back while building or rebuilding your credit, the Discover it® Secured Credit Card is an excellent choice. You’ll Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.. You’ll need to provide a deposit of at least $200 to open the card. However, Discover conducts automatic account reviews starting at seven months to see if you are eligible for an unsecured card. With timely payments, you could potentially score a card upgrade and have your deposit refunded in less than a year.
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Rewards rate: 1%-5% cash back on rotating quarterly categories and all other purchases
In addition to its $0 annual fee and high cash back rate on quarterly rotating categories, the Discover it® Cash Back boasts one of the most unique and valuable sign-up bonuses out there: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. . And if you stay on top of activating its bonus categories each quarter, you could earn up to $300 additional cash back in its bonus categories alone.
| Credit Cards | Our Ratings | Welcome Offer | Rewards Rate | First year value | |
|---|---|---|---|---|---|
|
Capital One SavorOne Cash Rewards Credit Card
Apply Now
on Capital One's secure site Rates & Fees |
Winner
|
$200 Cash Back after you spend $500 on purchases within 3 months from account opening | 3% Cash Back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®); 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply); 8% Cash Back on Capital One Entertainment purchases; 1% Cash Back on all other purchases | $637* |
Apply Now
on Capital One's secure site Rates & Fees |
|
Chase Freedom Unlimited®
Apply Now
on Chase's secure site |
1.5% cash back
|
SPECIAL OFFER: Unlimited Matched Cash Back. Chase will automatically match all the cash back you earned at the end of your first year! There is no limit to how much cash back you can earn. | Unlimited 1.5% cash back is just the beginning. Enjoy 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 1.5% cash back on all other purchases. | $881 |
Apply Now
on Chase's secure site |
|
Wells Fargo Active Cash® Card
Learn More
on Wells Fargo's secure site |
2% cash back
|
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months | Earn unlimited 2% cash rewards on purchases | $600 |
Learn More
on Wells Fargo's secure site |
Blue Cash Everyday® Card from American Express
|
3% cash back
|
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. | 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year in purchases, then 1%. 1% cash back on other purchases. Terms apply. | $583 | |
Chase Freedom Flex℠
|
5% cash back
|
Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. Plus, earn 5% cash back on grocery store purchases (excluding Target and Walmart) on up to $12,000 spent in the first year. | 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter! Plus, earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases. | $900 | |
|
Ink Business Cash® Credit Card
Apply Now
on Chase's secure site |
Business
|
Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening | Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn. | $1,152 |
Apply Now
on Chase's secure site |
|
Capital One Quicksilver Cash Rewards Credit Card
Apply Now
on Capital One's secure site Rates & Fees |
Travel
|
One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening | 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) | $529* |
Apply Now
on Capital One's secure site Rates & Fees |
|
Citi Custom Cash® Card
Apply Now
on Citibank's secure site Rates & Fees |
Gas
|
Earn $200 in cash back after you spend $1500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® points, which can be redeemed for $200 cash back. | Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. | $610 |
Apply Now
on Citibank's secure site Rates & Fees |
Blue Cash Preferred® Card from American Express
|
Groceries
|
Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. | 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. | $765 | |
|
Discover it® Student Cash Back
Apply Now
on Discover's secure site Rates & Fees |
Students
|
Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. | 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically | $660 |
Apply Now
on Discover's secure site Rates & Fees |
|
Discover it® Cash Back
Apply Now
on Discover's secure site Rates & Fees |
Sign-up bonus
|
Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. | Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically. Redeem your rewards for cash at any time. | $660 |
Apply Now
on Discover's secure site Rates & Fees |
|
Discover it® Secured Credit Card
Apply Now
on Discover's secure site Rates & Fees |
Bad credit
|
Discover will match all the cash back you’ve earned at the end of your first year. | Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases. | $90 |
Apply Now
on Discover's secure site Rates & Fees |
A card’s sign-up bonus is often what attracts people to a specific card. Many of our top cash back credit cards have a bonus in the neighborhood of $200. Make sure that you can meet the required spend to earn the sign-up bonus. Ideally, you’ll find a card that has both a decent sign-up bonus and offers good earning rates for your specific situation.
The earning rate is usually the most essential feature of a cash back card. If you want a flat-rate cash back card, make sure you select one that earns 2% on everything. If a tiered card fits your spending patterns, pick one that has the highest earning rate in those categories.
Estimate how much cash back you’ll earn with each card and weigh that against the annual fee. There are many great no-annual-fee cash back cards, but you may come out farther ahead by opting for a card with an annual fee.
| Blue Cash Everyday® Card from American Express | Blue Cash Preferred® Card from American Express | |
|---|---|---|
| Annual fee | $0 | $0 intro annual fee for the first year, then $95. |
| U.S. supermarket earning rate (up to $6,000) | 3% | 6% |
| Total cash back | $180 | $360 |
If you reach this cap, you would earn $360 on U.S. supermarket purchases with the Blue Cash Preferred® Card from American Express and only $180 with the Blue Cash Everyday® Card from American Express. The Blue Cash Preferred® Card from American Express‘s annual fee is well worth it in this case.
To see rates & fees for Blue Cash Preferred® Card from American Express please click here.
To see rates & fees for Blue Cash Everyday® Card from American Express please click here.
If you are carrying a large balance on another credit card, you may want a card with a 0% intro APR for balance transfers. You’ll pay a fee, but it could be less than the interest you’ll pay in the long run. Likewise, if you need to make a large purchase, such as materials for a home remodel, a card with a long 0% intro APR for purchases may give you the time you need to pay it off.
Finally, some cards offer additional features, such as purchase protection, extended warranty protection, travel insurance protections and no foreign transaction fees. If these features are important to you, make sure you find a card that offers them.
Cash back credit cards give you a percentage of your qualifying purchase back as a reward. For instance, a card that earns 5% cash back on groceries gives you $5.00 in rewards on a $100 grocery purchase. A card that earns 1.5% cash back gives you $1.50 on every $100 in purchases.
Your cash back rewards are usually available each month, after your statement closing date. Most cash back credit cards give you several ways to redeem your rewards. Redemption options may include:
Get cash back from points: Some cards earn flexible points that can be redeemed for cash or other rewards. Some of the best cash back credit cards technically earn points rather than cash rewards (like the Chase Freedom Unlimited®). When you redeem these points for cash back at a value of 1 cent per point, these cards are effectively cash back cards.Flat-rate cash back credit cards
Flat-rate cash back credit cards earn cash back at the same rate on every purchase. The rewards rate is typically between 1% and 2%.
Flat-rate cash back card examples:
Rotating cash back credit cards
Some cash back cards offer elevated cash back rates that rotate on a monthly or quarterly basis. There’s typically a cap on how much you can earn for these categories, and you would earn the regular cash back rate after meeting the cap. A few cards let you choose the categories in which you earn rewards, allowing you to maximize the rewards potential.
Rotating cash back card examples:
Tiered category cards
Many cards offer tiered rewards categories. This means you earn bonus cash back on certain categories of spend and 1% cash back on everything else. It’s common to find cards that offer 3% or higher cash back on groceries, gas, dining and more.
Tiered category card examples:
Store credit cards
Store credit cards help you earn cash back at a specific store. Since store cards are usually limited to purchases with that retailer, you should pick a card from a store you shop with regularly. These cards usually have higher APRs, so make sure to pay off your card balance each month.
Store credit card examples:
A tiered cash back card lets you earn an elevated rate of cash back in specific categories (and then 1% on everything else). On the other hand, a flat-rate cash back card lets you earn the same rate on every purchase, regardless of category. To give you an idea of how much you can earn with each type, we’ll compare the tiered Blue Cash Preferred® Card from American Express with the flat-rate Wells Fargo Active Cash® Card.
| Blue Cash Preferred® Card from American Express | Wells Fargo Active Cash® Card | |
|---|---|---|
| Welcome offer value | $250 | $200 |
| Earning rate | 6% cash back on groceries, 3% cash back on gas, 1% cash back on everything else | 2% cash back on every purchase |
| Rewards earned on $6,000 in groceries | $360 | $120 |
| Rewards earned on $3,000 in gas | $90 | $60 |
| Rewards earned on $11,000 in other spend | $110 | $220 |
| Annual fee | $0 intro annual fee for the first year, then $95. | $0 |
| Rewards minus annual fee | $715 | $600 |
| Annual rewards without factoring in sign-up bonus | $465 | $400 |
To see rates & fees for Blue Cash Preferred® Card from American Express please click here.
Gas
Many issuers consider both gas and gas station purchases to be applicable for cash back rewards on gas. Most major gas stations are covered, but some smaller chains might not be. Check on your issuer’s website to see if your gas station of choice qualifies for rewards.
Top pick for cash back gas card: Citi Custom Cash® Card
Groceries
Since groceries are a universal expense, many cards offer an elevated rate on them. Issuers sometimes label this category as “supermarkets” or “U.S. supermarkets.” Cards that offer rotating bonus categories may also feature a popular grocery store like Target or Walmart for a quarter.
Top pick for cash back groceries card: Blue Cash Preferred® Card from American Express
Restaurants
The restaurants category can include everything from fast food to high-end restaurants. Many cards usually consider take-out and delivery to fall under dining as well.
Top pick for cash back dining card: Capital One SavorOne Cash Rewards Credit Card
Travel
Some cash back cards give you a bonus on travel if you purchase through the issuer’s portal. However, if you’re serious about saving on travel, consider getting a travel card — you’ll often earn points that are more valuable than cash back.
Top pick for cash back travel card: Capital One Quicksilver Cash Rewards Credit Card
Business
Business cash back cards tend to have business-specific categories, like office supply stores, internet, phone services and more.
Top pick for cash back business card: Ink Business Cash® Credit Card
Entertainment
Entertainment can include concerts, sporting events, streaming services, theme parks, movies and more. Major events can be costly and it doesn’t hurt to earn some cash back to offset the price.
Top pick for cash back entertainment card: Capital One SavorOne Cash Rewards Credit Card
To get an idea of how much you can earn in a month with a cash back card, you can do some simple math. The formula will vary slightly based on whether you’re using a flat-rate cash back card or a tiered cash back card.
Scenario: You spend $500 a month on groceries, $200 on gas and $1,000 on other store purchases and bills for a total of $1,700.
Flat-rate cash back card
As an example, let’s use the Wells Fargo Active Cash® Card, which gives you 2% (0.02) cash back on all purchases.
Example: $1,700 x 0.02 = $34 cash back
Tiered cash back card
In this example, let’s use the Blue Cash Everyday® Card from American Express, which gives you 3% (0.03) cash back at U.S. grocery stores and U.S. gas stations and 1% (0.01) on other purchases.
Example: ($700 x 0.03) + ($1,000 x 0.01) = $21 + $10 = $31 cash back
Now that you’ve seen some of the best cash back credit cards, let’s walk through how to pick the perfect card for you. You’ll need some information on hand, including your credit score and an estimate of how much you spend monthly in various expense categories.
What credit cards do I qualify for?
Your credit score is the primary factor in determining which cash back credit cards you can qualify for. Most of the best cash back cards require good to excellent credit — that is, a FICO Score of 670 or greater. Depending on the card and issuer, you may also have to meet other eligibility criteria. This could include having sufficient income and not having opened too many credit cards recently. Your options will be quite limited if your credit is fair or poor, in which case you might want to consider a credit card to build credit instead.
Don’t know your credit score? Sign-up for an account at LendingTree Spring to get your free credit score and recommendations to boost your score.
| FICO Score | Vantage Score |
|---|---|
|
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Tip: Read the fine print of each offer. Even if you have great credit, some issuers have other eligibility criteria you must meet. As an example, Chase has an unwritten “5/24” rule, which means you may not be approved for a new Chase card if you’ve opened five or more personal credit cards from any issuer in the last 24 months. Meanwhile, Citi and American Express have restrictions on welcome offer eligibility for new card accounts.What level of maintenance do you want with your cash back credit card?
| If you want... | Choose a … |
|---|---|
| The simplest rewards possible | Flat-rate cash back credit card |
| A card to use strategically to earn more cash back | Rotating cash back credit card |
| A card that matches your spending patterns | Tiered category card |
| To shop at the same store | Store credit card |
Tip: If you’re willing to do some work, having multiple cash back credit cards can maximize your rewards. Piece a tiered category card that matches your typical spending patterns and supplement that one with a flat-rate cash back card for noncategory purchases. Finally, consider adding a rotating 5% cash back credit card to use strategically each quarter.Find a card that has rewards that match your spending habits
Ultimately, you want to maximize your rewards rate, and that means tailoring your cash back credit cards to your spending.
For example, several cards offer bonus spending on gas and groceries. However, if you live somewhere like New York City and don’t have a car, cash back at gas stations would be useless. Likewise, if you shop for groceries at superstores like Walmart and Target, you may be excluded from earning a grocery bonus on these purchases.
You’ll have to figure out which cards offer bonus cash back in categories where you spend the most.
Tip: If you do a large amount of shopping at a single store (like Costco or Walmart), a cash back card for a specific retailer might be the best choice. A card like the Capital One Walmart Rewards® Card that earns 5% at Walmart.com and 2% on in-store purchases could be perfect for the frequent Walmart shopper.Calculate which cash back credit card is best for you
Once you’ve narrowed down the card choices, you’ll want to do a comparison. Take into account the various bonus categories and how much you typically spend in each either monthly or yearly. For example, if you spend approximately $500 in groceries each month and use a 2% flat-rate cash back card to buy them, you’ll earn $120 in cash back each year.
It’s good to consider the value of any sign-up bonuses as well, but note that these only affect the first year value. A card without a sign-up bonus could be better in the long run.
The following tips will help you maximize your earnings and get the most out of your cash back cards.
See Capital One Quicksilver Cash Rewards Credit Card rates and fees.
Savvy travelers may find that travel cards are far more valuable than cash back cards. For instance, you might find a card that earns 3X miles on dining purchases and allows you to transfer points to your favorite airline loyalty program. By booking special deals with the airline, you might be able to get a value of 2.5 cents per point, which gives you a 7.5% rewards rate on your dining purchases. That’s a better rate than any of the cards on this page.
Still, maximizing the value of hotel points and airline miles takes some work — so if you don’t really travel or just prefer simplicity, cash back cards are probably the better option for you.
Here are some key features of cash back credit cards and travel credit cards:
| Cash back credit cards | Travel credit cards | |
|---|---|---|
| Simple and straightforward | ||
| Lower annual fees | ||
| Easy-to-earn sign-up bonuses | ||
| Get more value out of rewards | ||
| Travel benefits and protections |
Cash back cards are best for people who don’t travel as much and prefer having flexible rewards. If any of these apply to you, then a cash back credit card is also likely a good fit for you.
Savvy budgeters: If you love to find new ways to save, then a solid selection of cash back cards can help you do just that. Plus, cash back rewards only meet their full potential if you pay your balance off every month.
Frequent shoppers: If you love online shopping or buying things elsewhere, then a cash back card can help you save on the shopping you’re already doing. Just be careful you don’t overspend for the sake of earning rewards.
People new to credit cards: Cash back are usually a lot simpler to use and have lower annual fees than travel cards. If you’re new to credit cards and are interested in earning rewards, a cash back credit card is a great place to start.
Depending on your financial situation, a cash back card might not be the best credit card option for you.
→ People who are serious travelers: If you are a frequent traveler, you may find a travel card to be a better fit than a cash back card. You can earn points or miles, which can be worth more than cash reward when redeemed for travel the right way.
→ People with a large upcoming expense: If you need to make a large purchase and want the flexibility to pay over time, consider a 0% APR credit card. You can find several cards that let you spread your payments out for more than a year, and as long as 21 months, without paying a cent of interest.
→ People with credit card debt: You may find that a balance transfer credit card is best, since you can transfer high-interest credit card debt to a card with little to no interest for up to 21 months. This can potentially save you thousands of dollars.
→ People building credit: Many cash back credit cards require a good or excellent
credit score to be approved, but a credit card to build credit can help you improve your credit score to qualify for a high-earning cash back card. Some secured credit cards even offer cash back rewards.
The best cash back credit card is the one that gives you rewards on the items you buy most — and this varies for everyone. For example, a college student who lives on campus and has a meal plan would be better off with a flat-rate cash back card. Meanwhile, a couple who commutes to work might want to consider a tiered cash back card that earns a higher cash back rate on gas or transit purchases.
Typically, cash back earned on a credit card won’t be taxable, since 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.
Cash back cards are worth getting and using as long as you pay off your balance in full each month. Earning an extra $20 is great, but paying a high APR or late fee can immediately negate your cash back earnings. If you’re tempted to overspend or are in a situation where you can’t pay off your balance, a cash back card won’t be your best option.
Credit cards provide cash back rewards to incentivize card usage and customer loyalty. Cardholders receive a percentage of their purchases back as a cash reward, reducing their overall expenses. In the meantime, credit card companies aim to increase spending and profits through interest charges. This creates a win-win relationship for consumers and card issuers.
Yes, cash back rewards can expire. Rules vary between card issuers, with banks like Wells Fargo and Capital One allowing you to keep rewards stashed away until your account closes. Cash back rewards from U.S. Bank, on the other hand, expire after 36 months — even if your account is open.
There are a few cash back cards that come with no foreign transaction fee, including the Discover it® Cash Back and Capital One Quicksilver Cash Rewards Credit Card. The best card will feature cash back categories that match your spending habits, as well as other benefits like no annual fee and intro APR offers.
See Capital One Quicksilver Cash Rewards Credit Card rates and fees.
This highest tiered cash back card is the Blue Cash Preferred® Card from American Express, which gives you a whopping 6% cash back on select U.S. streaming services and purchases made at U.S. supermarkets. The highest flat-rate cash back card is technically the Alliant Cashback Visa® Signature Credit Card, which lets you earn up to 2.5% cash back on your first $10,000 of qualifying eligible purchases (1.5% for purchases over $10,000). However, this card requires that you open a checking account with Alliant Credit Union and maintain a daily balance of at least $1,000 to be eligible for the 2.5% rate. Instead, we recommend the Wells Fargo Active Cash® Card, which lets you earn unlimited 2% cash rewards on purchases.
We selected the best cash back credit cards through a review of cards available on LendingTree and from top issuers. The following factors influenced our top card picks:
Useful benefits such as cellphone protection and extended warranty protection influenced our choices as well.
To see rates & fees for Blue Cash Preferred® Card from American Express please click here.
To see rates & fees for Blue Cash Everyday® Card from American Express please click here.
LendingTree has curated an exclusive panel of professionals, spanning various areas of expertise, to help dissect difficult subjects and empower you to make smarter financial decisions. Read on for more cash back credit card insights.
The commentary provided by these industry experts represent their viewpoints and opinions alone.
Would you recommend a cash back credit card to a first-time credit card user? Why or why not?
Yes, cash back is a great additional benefit for credit card users. The purpose of using credit cards responsibly is to build a history of excellent credit so you can tap into the larger loan markets. The cash back feature is an added benefit that helps users save money while using credit cards.
How do words like “bonus” or “rewards” impact consumers’ buying decisions?
These words motivate the consumers in making decisions. The consumers themselves when wanting to purchase something have an internal desire to do so. However, they are oftentimes bounded by budget and opportunity costs. These words help create external motivation that makes it easier for the consumers to make decisions by adding one more item on the benefit side of their decision-making chart.
What are a few sensible ways in which consumers can utilize their cash back rewards?
The best way to utilize cash back rewards is to use the cash back balance and apply towards payments of the credit card balance. Credit card users can also ask for a paper check or ask for the cash reward to be deposited directly to their bank account. Another great way to utilize cash back rewards is to convert them into gift cards to use at other stores.
In your opinion, how well do cash back rewards programs work at keeping customers loyal to a brand?
Cash back rewards program works well at keeping customers loyal. Customers love to accumulate points or rewards so seeing their rewards adding up will discourage them from finding an alternative option. Many times the fear of losing what they have accumulated overtime is what keeps customers from parting with a business, a brand or a product. For a business, the cost of giving away rewards to keep their current customers is much cheaper than the cost of acquiring new customers.
Would you recommend a cash back credit card to a first-time credit card user? Why or why not?
It really depends on the individual circumstances of the person. There are so many “so-called” loyalty cards out there: cash back, flexible cash back, rewards, airline, etc. My recommendation as to the specific type of loyalty credit-card would depend on the person’s spending patterns. One needs to also take into account the annual-fee, from a cost-benefit standpoint. That said, cash is fungible (vs. other more specific loyalty cards like airlines).
How do words like “bonus” or “rewards” impact consumers’ buying decisions?
Those are charged words when it comes to the “psychology of consumption.” Similar to the word “sale” or “free,” these terms often function like a neon flashing sign in the minds of consumers. Hence, consumers can engage in a kind of faulty mental calculus where they overweight the value of these benefits relative to the costs. For example, when someone drives across town to get the lowest price per gallon on gas but winds up actually paying more per gallon than had they gone to the corner gas station nearest their home (when you factor in fuel and time to drive across town). So, the danger is when these terms cause consumers to “chase” the rewards or reward tiers by spending more than they typically would.
What are a few sensible ways in which consumers can utilize their cash back rewards?
Don’t spend any more than you would otherwise spend in a given month just because you are getting cash back on purchases in general (or on certain categories of purchases). Use the cash back to pay off your credit card (or to pay down your credit card balance). Given credit-card interest rates, that’s a pretty great “reward” or “deal” in and of itself!
In your opinion, how well do cash back rewards programs work at keeping customers loyal to a brand?
They definitely move the loyalty needle. Otherwise, we wouldn’t have seen the proliferation of such cards over the past decade plus. However, with so many of these cards nowadays, it’s becoming less of a “point of differentiation” for financial institutions and more of a “point of parity.” It’s almost expected now by consumers that the differentiators in this space offer percentage of cash back, flexibility, etc.
Would you recommend a cash back credit card to a first-time credit card user? Why or why not?
Yes, I would recommend a cash back credit card, provided it pays at least 2% on all purchases. Some cards pay only 1.5%, which is perhaps not as valuable as frequent flier miles or hotel points, depending on one’s activity and status with these travel partners. These days, frequent flier miles are worth only about 1% of what you’ve spent; so 2% is definitely more valuable.
How do words like “bonus” or “rewards” impact consumers’ buying decisions?
These tend to be “buzz words,” and their impact likely depends on the perceived value of the “bonus” or “reward.” The “devil is in the details,” implying that in order to be effective, the “bonus” and/or “rewards” should be meaningful and valuable to the consumers, and, ideally, designed with knowledge of the specific consumers’ habits and preferences.
What are a few sensible ways in which consumers can utilize their cash back rewards?
Most important, pay the entire balance due on your credit cards each period (I recommend “auto pay” in which the credit card company draws funds on your bank account to pay the entire balance on the date that payment is due). Now that you are getting cash back and not paying in credit card interest, you can spend or invest the cash rewards on products or services, or as accumulated, investments that will provide good returns
In your opinion, how well do cash back rewards programs work at keeping customers loyal to a brand?
As long as the cash back is worth more than other incentives offered by competitors’ programs (or credit cards), consumers will continue to favor using the credit cards that give them valuable cash back, and/or they will tend to favor buying from companies that reward their loyalty with incentives that provide meaningful experiences (e.g., airline lounges, upgraded flights or concert experiences) or combo deals (BOGO, “buy one get one” (free), and the like).
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
