Best Cash Back Credit Cards

Summary of the Best Cash Back Credit Cards

Chase Freedom Unlimited®Introductory APR on purchases3% cash back on dining More information 5% cash back on travel through Chase; 3% cash back on drugstore purchases; 5% cash back on Lyft purchases (through March 2022); 1.5% cash back on all other purchases $04.7 / 5

Research methodology: How we picked the best cash back credit cards

We know just how important it is that you have the perfect cash back card for your specific spending habits to maximize your potential rewards. That’s why we analyzed 682 cards to bring you the top 13 cash back cards. For a list of detailed criteria and more detail on our review scores, see our ratings process for cash back credit cards.

Cash back credit cards analyzed: 682

Criteria used:

Cash back rate and categories

Of course, the best cash back credit cards make it easy to earn cash back. That’s why we chose credit cards that offer high rewards rates on common purchases. We understand that “everyday spending” looks different for various lifestyles, so we chose a variety of bonus categories, from travel to groceries to entertainment.

Redemption options

We made sure to consider ease and usefulness of redemption options. After all, what’s the use of cash back if you can’t redeem it in a way that’s valuable to you? Most cash back cards allow the option to redeem as a statement credit, effectively lowering your balance. With some cards, though, you can redeem your cash back as a bank direct deposit, gift cards, charitable donations or even credits toward loan balances. Since these alternative redemption methods can sometimes add value to your cash back earnings, we weighed all methods of redemption.
We also considered ease of redemption since some cards require a minimum cash back balance in order to redeem. For example, you may need to accumulate $25 in cash back before you can actually redeem your earnings, which some may find too restrictive.

Sign-up bonus

When analyzing a credit card’s overall value, we always think long-term: ongoing rewards rate, fees, etc. But a sign-up bonus is a nice way to kickstart your cash back earnings, and many of the best cash back cards have competitive welcome offers. The ideal sign-up bonus rewards you generously for a low spending threshold.

Rates and fees

Here, we dug into a few costs that may cut into the card’s potential value. When assessing cards with annual fees, we did the math to ensure that cardholders’ cash back and other benefits could likely surpass that cost. Since it’s not advisable to carry a balance on a cash back card, we avoided cards with sky-high interest rates.

Miscellaneous benefits and features

Additional perks and benefits are rarely the main attraction, but they can be tie-breakers when comparing two similar offers. Plus, they often help you save money, adding to the card’s long-term value. Features like auto rental insurance and price protection are often overlooked but can save you hundreds if you remember to use them.

What are cash back cards?

Cash back cards are pretty straightforward – they allow you to earn cash for spending on your favorite card. Once you build your credit and know how to manage your credit cards, it’s time to think about rewards. And cash back rewards can be among the most straightforward of the rewards cards out there, making them a great starter product. According to our 2019 cash back survey, the average cash back card offers a cash back rate of around 1.25 percent per dollar, though you can easily exceed that amount with careful card selection and usage.

How do cash back credit cards work? Whether you choose a card with a flat rate or a product with rotating categories, this is a great way to earn cash while making purchases. For example: Let’s say you spend $500 a month and the cash back rate is 5% on specific categories. That means you are earning $25 a month just for card loyalty. There are sometimes spending requirements and sign-up rules, though.

Cash back cards will usually also have a sign-up bonus of up to $300 back, so be sure to shop around. However, as with all rewards cards, you need to be sure to pay in full each month, because otherwise, you’ll pay interest charges on the balance each month, and that would defeat the purpose of having a rewards card.

What are the different types of cash back cards?

Cash back cards can be a little confusing when you are shopping around because each one has a slightly different rewards plan. The best plan for you is the one that matches your past spending habits. Here are some different types:

Flat rate

Flat-rate cash back cards typically offer 1.5% back on all purchases, allowing you to not worry about maximum spends or quarterly sign-ups. However, the rewards are lower, which is the tradeoff for not having to think about what and where you are making purchases. Examples of flat rate cards include:

• Capital One Quicksilver Cash Rewards Credit Card – This card gets you 1.5% cash back on every purchase you make, charges no annual fee and comes with a sign-up bonus of $150 if you spend $500 in the first 3 months. Redeem cash back for a check, statement credit, gift cards and more in any amount, any time.
• Wells Fargo Cash Wise Visa card – Another 1.5% flat rate cash back card that comes with a $150 bonus if you spend $500 in the first 3 months. What really sets it apart is its included cellphone insurance: Pay your monthly cellphone bill with the card and you’ll get $600 worth of protection against covered cellphone damage and theft (subject to a $25 deductible).

Multiple tiers

Some cards offer boosted cash back on specific categories. The rate is year-round in this case, but there may be a maximum spend limit. Examples of a tiered cash back card include:

• Blue Cash Preferred Card from American Express – Even with an annual fee of $95, this card is a great choice for families and lovers of home cooking, offering 6% cash back at U.S. supermarkets (on up to $6,000 in purchases per year, then 1%) and 6% back on select U.S. streaming subscriptions. You’ll also earn 3% back at U.S. gas stations, 3% back on transit and 1% back on everything else.
• Blue Cash Everyday Card from American Express – Another practical choice for earning cash back on everyday spending, this card gets you 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 2% back at U.S. gas stations and select U.S. department stores and 1% back on everything else, all without paying an annual fee.

Rotating categories

This type of cash back card requires the most thinking because select categories reward you with, for example, 5% back for a specific amount of time (typically 1% cash back after a $1,500 maximum spend each quarter). You have to sign up for bonus categories each quarter and you have to pay attention to when and where you make purchases. Examples of cash back cards with rotating categories include:

• Chase Freedom Flex– Enroll in rotating bonus categories and score 5% cash back on the first $1,500 you spend in a quarter (1% back after that). From October through December 2020, the Chase Freedom Flex’s bonus categories include Walmart and Paypal.
• Discover it Cash Back – Like the Chase Freedom Flex card, the Discover it Cash Back lets you enroll in rotating bonus categories and earn 5% cash back on the first $1,500 you spend in a quarter (1% back after that). Discover’s full 2020 cash back calendar is now live and features categories like grocery stores, gas stations, restaurants, Amazon.com and Walmart.com. You’ll also enjoy the famous Discover cashback match at the end of your first year.
• Discover it Student Cash Back – This card is almost identical to the Discover it Cash Back, but designed for students. It offers the same rotating bonus cash back categories and first year cashback match, plus a $20 statement credit every year you earn a GPA of 3.0 or higher (for up to the next 5 years).

Customizable choice of category

A new type of cash back card opportunity has appeared in the last year that allows you to choose your own bonus category. There can be a requirement to sign up for a boosted category with some cards, and you need to keep track of which category you are currently signed up for to maximize your rewards. These kinds of cards include:

• Bank of America Cash Rewards – You get 3% cash back in a category of your choice and 2% cash back on grocery store and wholesale club purchases (on up to a combined $2,500 in spending per quarter, then 1%). Choose from 3% bonus categories including gas, online shopping, dining, travel, drug stores and home improvements/furnishings. Plus, you can change your bonus category choice once per calendar month.
• U.S. Bank Cash+™ Visa Signature Card – It also lets you customize your rewards, offering 5% cash back in 2 bonus categories of your choice (on up to $2,000 in spending per quarter) and 2% back in an everyday spending category of your choice. Listed among the card’s 5% bonus categories are department stores, fast food restaurants, furniture stores, movie theatres and more. You can change your bonus category once per quarter.

Which is better – cash back, points or miles?

If you’re still getting your feet wet in the world of credit card rewards, it can be hard to tell what sort of card fits you best. When comparing the value of cash back and travel points and miles, you should weigh annual fees, bonuses and perks, as well as reward redemption and flexibility.

Fewer cash back cards charge annual fees, but travel cards that use points or miles usually offer large sign-up bonuses and more valuable travel perks like lounge access and credits for expedited security screening. Additionally, cash back cards generally make it simple to redeemrewards as a statement credit, check or direct deposit, while redemption can be more complicated with travel cards, as well as less rewarding if you aren’t redeeming for travel. That being said, whenever the outlook for travel returns to pre-2020 conditions, travel rewards cards can help you squeeze extra value out of your rewards via redemption through a travel portal or transfer to airlines and hotel loyalty programs.

What credit card earns the most cash back?

The best cash back card for you depends on how you’ll use the card, but here are some of the favorite categories and the top credit cards in those groups.

• U.S. supermarkets: Blue Cash Preferred® Card from American Express – 6% cash back on up to $6,000 a year in purchases, then 1%
• Gas: Bank of America® Cash Rewards – 3% on up to $2,500 a quarter in purchases including 2% categories
• Dining out and entertainment: Capital One® Savor® Cash Rewards Credit Card – 4%
• All categories: Citi® Double Cash Card – 2% cash back on all purchases. Earn 1% as you make purchases and 1% as you pay them off.

Popular cash back categories

When we asked consumers in November 2018 what their favorite rewards categories are, we were a little surprised to find that time and again, they turn to groceries overall, with travel following close behind.

Favorite cash back categories…

• Groceries
• 35%
• Travel
• 27%
• Gas
• 23%
• Dining
• 14%

Our own CreditCards.com analyst, Ted Rossman, reminds us that you want to make sure the card you choose matches your lifestyle. “Whether you’re planning a family vacation, stocking up at the grocery store, enjoying a dinner out with friends, or refueling your car on the way home, credit cards can reward you for things you’re planning to purchase anyway.”

Comparing two cash back credit cards

With so many options to choose from in the way of cash back cards, it helps to know how to compare them. Here, we look at the Blue Cash Preferred from American Express and the Wells Fargo Cash Wise Visa card, each with their own advantages.

Ongoing rewards

Rewards can vary widely, sometimes with maximums on spending and sometimes unlimited. For example, the Cash Wise Visa offers 1.5% back on all spending, while the Blue Cash Preferred has boosted rewards at U.S. supermarkets, U.S. gas stations and more (for the U.S. supermarkets, it’s up to $6,000 a year, then 1%). The Cash Wise Visa also offers 1.8% cash rewards on qualified digital wallet purchases, like Apple Pay or Google Pay, during the first 12 months from account opening.

Welcome bonus

Most have a welcome bonus, typically of $150 after a set amount of spend, however, cash back cards with an annual fee may have a higher offer. For example, the Blue Cash Preferred offers $250 after a $1,000 spend within the first 3 months, while the Cash Wise Visa offers $150 after a $500 spend within the first 3 months.

Annual fees

Annual fees can stop you in your tracks, but they don’t have to. Sometimes, they are worth the cost, whether there are certain benefits or particularly rich rewards. While the Blue Cash Preferred’s annual fee of $95 is not waived the first year, the rewards at U.S. supermarkets can be unbeatable for the large family. Meanwhile, many of the cash back cards on the market have no annual fee, such as the Cash Wise Visa.

Special features and benefits

Some cards have features like auto rental insurance, price protection and more. Look at your lifestyle and see if there is a benefit that makes the card worth your while. For example, the Cash Wise’s famous cellphone protection is a great find, while the Blue Cash Preferred’s travel benefits such as auto rental insurance may be worth your attention.

Here we put it all together.

Comparison of Blue Cash Preferred and Cash Wise Visa, first year…

Card:	Blue Cash Preferred	Cash Wise Visa
Welcome bonus	$250 after $1,000 spend/3 mths	$150 after $500 spend/3 mths
U.S. supermarkets	$500*12 mths*6%= $360	$500*12 mths*1.5%= $90
U.S. gas stations	$200*12 mths*3%= $72	$200*12 mths*1.5%= $36
Select U.S. streaming	$100*12 mths*6%= $72	$100*12 mths*1.5%= $18
Digital wallet purchases	$100*12 mths*1%= $12	$100*12 mths*1.8%= $21.60
Other spending	$200*12 mths*1%= $24	$200*12 mths*1.5%= $36
Annual fee	$95	$0
Total first year	$695	$351.60

As you can see, if you are a big spender on groceries, the Blue Cash Preferred is best, but if you favor all types of spending, the Cash Wise Visa might be the right choice.

Is getting a cash back card worth it?

Cash back cards appeal to customers for a number of reasons, but mainly due to their ease and flexibility: Because they offer cash back rewards, there’s no need to convert points and miles to dollar values.

While many people prefer cash back cards because of their simplicity, the cards also have their drawbacks, so we’ve compiled a short list of the advantages and disadvantages of using a cash back rewards card. If you’ve ever contemplated whether a cash back card can help you, here are some key considerations to keep in mind as you make a decision.

Pros

Whether you are treating your new cash back card as a starter card or if you want redemption options, a cash back product has a number of benefits:

• Easy to earn rewards: Rather than keeping track of the monetary value of point or mile conversions, cash back cards simply give a percentage of your purchase back. If you want a card for all occasions, flat percentage cards offer cash back on all purchases — usually 1.5% — but bonus category and tiered rewards cards offer much higher cash back on specific purchases.
• Sign-up bonuses are usually available: The best cash back sign-up bonuses can reach up to $300 and generally begin at $150, which is fantastic for covering things like balance transfer fees. Sign-up bonuses for cash back cards are great incentives since they’re usually accessible within a large purchase or two.
• Everyday spending or boosted rewards: Whether you want to maximize your money back on essentials like groceries and gas, or you need a versatile card that earns rewards where your other cards don’t, cash back cards can adapt to any wallet.
• Build and maintain credit score: Cash back cards encourage healthy credit card spending by rewarding a paid balance with straightforward rewards on consistent purchases to avoid interest.
• Practice to get a more rewarding travel card: Although some cash back cards don’t offer benefits as varied as travel cards, bonus category and tiered cards can prepare you for building miles with similar rewards structures you won’t have to micromanage. Meanwhile, you may be able to earn rewards that can pool or convert for travel down the road.
• Frequently no annual fee: Cash back cards typically don’t charge an annual fee, which is great for boosting your reward earnings! However, if you feel you can spend money to make money, some cards offer premium cash back for an annual fee.
• Cash back rewards frequently don’t expire: Some cash back card rewards never expire for the life of your account (barring other terms) – perfect for anyone wanting to save their rewards without redemption windows breathing down their neck.

Cons

Cash back cards aren’t for everyone. For example, the world traveler may want to look elsewhere, and some cash back cards can have onerous rules.

• Lack of travel benefits: Don’t expect many travel benefits outside basic auto rental insurance with cash back cards, but cash back may prove more valuable than travel features for now.
• Cash back rewards could expire: Most cash back card rewards don’t expire for the life of your account, but you could lose them if your account is closed, you fail to pay your balance or you don’t use your card for periods ranging from 12 to 18 months.
• Some cash back cards have maximum spend limits on certain categories: Bonus category and tiered rewards cards might have a quarterly or annual spending cap before your higher cash back returns to 1%. For instance, you may have a combined purchase max of $1,500 per quarter or $6,000 per year. If you think you might exceed the bonus spending cap, beginners should consider flat percentage cards that can earn unlimited cash back at a lower rate. Consumer who want to maximize their spending may want combinations of cash back cards.
• You may have to sign up each quarter to qualify for boosted cash back rewards: Activating each your rewards category each quarter is common for bonus category cards. Cardholders who could forget quarterly deadlines – or don’t like dealing with them – may not find these higher-earning cards to be worthwhile.
• Sign-up bonuses usually require a minimum spend within 3 months: Unfortunately, sign-up bonuses aren’t immediate. They typically require spending $500 to $1,000 within 3 months, which could disqualify certain cards you might be looking at, depending on your budget.
• Carrying a balance negates any rewards you earn: Because rewards credit cards do pose an interest rate higher than the rewards rate, it’s key to pay off your balance each month or your interest will eat your cash back.

How to maximize cash rewards

1. Use credit cards for most of your spending

To quickly bulk up rewards earnings or meet the minimum spend requirement for a sign-up bonus, you should use your cash back cards for as many of your everyday purchases as possible. A large purchase – such as furniture or another major purchase – can help you meet a spending threshold and score a large amount of cash back in one swoop.

However, using cards for your everyday spending – including groceries, gas and utility bills – is the best way to go if you want to earn a large amount of cash back over time. Note that you need to watch out for merchants that tack on a convenience fee, since this can negate the value of your cash back.

2. Use multiple cash back cards

If you sign up for multiple cash back cards that offer bonuses in different spending categories and rotate them to earn bonuses in each of the spending categories, you can increase the rate of cash back that you earn.

3. Keep a close eye on deadlines and fees

You need to take care to pay your card by the due date, since the late fees and penalties from a missed payment can quickly negate any cash back that you earn.

4. Find other ways to earn cash back

Some cards reward for signing on an authorized user or referring new cardholders, so check for that.

5. Maximize your cards’ spending categories

If you have a card with 5% rotating quarterly categories – such as the Discover it Cash Back card – there are a few tricks you can use to reach the $1,500 spending cap each quarter:

• Stock up on larger quantities of items that won’t spoil
• Pay your annual bills in advance
• Do your Christmas and birthday shopping early

6. Call your card issuer

After your first year of card membership, if there is an annual fee, consider calling your card issuer and asking if they’ll waive the annual fee a second year. Our study shows that when cardholders ask for better terms on their cards, chances are they’ll get it.
These rules of thumb will make sure your card is operating at peak performance while avoiding these common cash back credit card mistakes.

Redeeming cash back with each popular issuers

The most common redemption options for cash back cards are statement credits, checks mailed to you, bank deposits, prepaid gift cards and charitable donations. To redeem your cash back, you can go online or call the issuer directly to specify in what form you want to receive the cash back. Some issuers will allow you to opt to have the rewards automatically applied each month, while others require you to request the rewards each time you want to use them.

The amount of cash back needed to redeem your rewards varies depending on the specific card and the redemption option. Read on to see what options are available for Discover, Citi, Chase, American Express, Capital One, Bank of America and Wells Fargo cardholders.

Frequently asked questions

Which type of cash back credit card is best?

Whether your best choice is flat-rate, tiered category or rotating category cash back, it comes down to what categories you’ll earn the most rewards back on.

• If your biggest expenses are seasonal, like gas stations for summer road trips, then rotating categories may earn you the most cash back.
• If the biggest slice of your budget is on a fixed category year-round, like groceries and gas, then a tiered category card could be the best option.
• A flat-rate cash back card might be your best bet if your expenses don’t fall within other credit cards’ traditional categories or quarterly spending limits.

What are merchant category codes?

Merchant category codes (MCCs) are four-digit numbers each credit card network (not issuer) uses to identify businesses that accept credit cards. Each of the main networks – Visa, Mastercard, Discover and American Express – have their own number directory to track your spending for reward and security purposes. Discover and American Express don’t openly advertise their MCC directories, but the IRS has a complete list for general reference. The numbers work like a “genre” for credit card purchases, and the numbers alter slightly as “sub-genres.”
These different “sub-genres” can differ from store to store within the same chain – or even from department to department in the same store.
The good news is that you can maximize your spending and earn rewards on unusual purchases if you know the MCCs in your area. For instance, most Sears Optical locations fall under Visa’s “5311: department stores” code, so a department store bonus category could earn cash back on your glasses.

Check out our reviews

Interested in learning more about each card? We’ve reviewed several cash back credit cards – check them out in our reviews section.