Best Cash Back Credit Cards

Summary of the Best Cash Back Credit Cards

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 with 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% 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.

Who should apply for a cash back credit card?

If you’re considering getting a cash back credit card, the number one rule is that you should be able to pay your bill in full each month. Interest charges can easily outweigh cash back earnings, so you’re usually better off looking for a low interest credit card if you’ll be carrying a balance.

Another consideration you should make involves your credit score. While you can get a cash back card with fair or limited credit, the best cash back cards will require at least good credit (670+). If your credit is in bad shape, your first priority should be looking for a card with credit-building features, like the ability to increase your credit line with on-time payments.

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 $200 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 – 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. In general, cash back is best for simplicity-lovers who want to put money back in their pocket. Points and miles are best for those who want to get more value from their rewards and use them on travel purchases.

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 redeem rewards 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.

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

Cash back categories have become quite diverse in recent years. Nowadays, it’s not uncommon to find rewards categories like streaming services and rideshare apps. While niche categories like these are great additions to a rewards structure, you should base your decision on a category in which you spend a substantial amount. Here are a few of the most popular categories:

Everyday purchases

• Gas stations
• Supermarkets
• Bills (cellphone plan, home utilities)
• Drugstores
• Retailers, like Amazon or Walmart

The extras

• Restaurants
• Entertainment (concerts, sporting events)
• Travel

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 a limited time bonus $300 after a $3,000 spend within the first 6 months (offer ends 12/10/20), 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 does have an on-going annual fee of $95, it is waived the first year (limited-time offer ends 12/10/20), and 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	$300 after $3,000 spend/6 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	Limited Time Offer: $0 introductory annual fee for one year, then $95. Offer Expires 12/10/2020	$0
Total first year	$840	$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.

How to maximize cash rewards

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 big-ticket item – 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, like utility providers, since this can negate the value of your cash back.

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.

Take a look at your budget and pick your top three spending categories. Do you have a dedicated, strategic credit card for each? If not, that’s money left on the table.

Keep a close eye on deadlines, interest and fees

The first rule of having cash back cards is that you should only use them if you’re confident you can pay your bill in full. Interest payments will almost always be greater than rewards earnings. You also need to take care to pay your balance by the due date, since the late fees and penalties from a missed payment can quickly negate any cash back that you earn.

Find other ways to earn cash back

There are other ways your credit card may reward you for being a loyal customer. Some cards offer cash bonuses for signing on an authorized user or referring new cardholders, so check the terms and conditions to see if your card offers those bonuses.

Maximize your cards’ spending categories

If you have a card with 5% rotating quarterly categories, there are a few tricks you can use to reach the 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 thesecommon cash back credit card mistakes.

Redeeming cash back with each popular issuer

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. Here are the redemption options for a few of the most popular issuers.

American Express

• Statement credit
• At times, AmEx may offer alternative redemption options, such as gift cards or merchandise.
• Charitable donations

Bank of America

• Statement credit
• Bank of America checking or savings account deposit
• Check (starting at $25)
• Credit to an eligible Merrill account
• Charitable donations

Capital One

• Statement credit
• Gift cards
• Check

Chase

• Statement credit
• Bank account deposit
• Gift cards
• Check
• Pay with rewards at Amazon checkout
• Redeem for travel and other options on Chase Ultimate Rewards portal

Citi

• Statement credit
• Redeem to a linked Citi checking or savings account or to a checking account from which you have paid a Citi credit card bill at least 2 times
• Gift cards
• Check
• Convert cash back to Citi ThankYou Rewards points
• Charitable donations

Discover

• Statement credit
• Bank account deposit
• Gift cards
• Pay with rewards at Amazon checkout
• Make a charitable donation

Wells Fargo

• Statement credit
• Wells Fargo checking or savings account deposit
• Cash back redemptions at a Wells Fargo ATM (only in $20 increments)
• Credit toward qualifying Wells Fargo mortgage principal balances
• Credit toward qualifying Wells Fargo personal loans
• Merchandise, travel, or gift card rewards through the Wells Fargo GoFar Rewards portal
• Charitable donations

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.