Cash back credit cards are a useful tool to get paid back for the things you buy every day. Cash back is typically easy to understand and redeem, which is great for on-the-go folks who like to keep it simple. Cash back is also the most flexible form of rewards, allowing you to spend your earnings however you’d like.
For the simplicity lover, some cards offer a flat cash back rate on all purchases – usually between 1% and 2%. Other cash back cards offer a higher rewards rate on specific purchase categories like dining or groceries.
We analyzed 682 cash back card offers and narrowed them down to our top recommendations for a variety of lifestyles. Browse our picks for the best cash back offers from our partners and find a card that fits your spending habits.
Cash back credit cards are a useful tool to get paid back for the things you buy every day. Cash back is typically easy to understand and redeem, which is great for on-the-go folks who like to keep it simple. Cash back is also the most flexible form of rewards, allowing you to spend your earnings however you’d like.
For the simplicity lover, some cards offer a flat cash back rate on all purchases – usually between 1% and 2%. Other cash back cards offer a higher rewards rate on specific purchase categories like dining or groceries.
We analyzed 682 cash back card offers and narrowed them down to our top recommendations for a variety of lifestyles. Browse our picks for the best cash back offers from our partners and find a card that fits your spending habits.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
1%
Plus, earn unlimited 1% cash back on all other purchases – automatically.
At A Glance
Intro Bonus
Cashback Match™
Intro Offer: 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.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
1%
Earn unlimited 1% cash back on all other purchases - automatically.
At A Glance
Intro Bonus
Cashback Match™
Intro Offer: 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.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn cash back on your next road trip with 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.
1%
Earn 1% unlimited cash back on all other purchases – automatically.
At A Glance
Intro Bonus
Cashback Match™
Intro Offer: 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. Just a dollar-for-dollar match.
Editorial disclosure: All reviews are prepared by CreditCards.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including card rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the bank's website for the most current information.
All information about Capital One Savor Cash Rewards Credit Card has been collected independently by CreditCards.com and has not been reviewed by the issuer.
It’s safe to say you have plenty of opportunities to earn cash back with the Chase Freedom Unlimited. You’ll earn a standard 1.5% on all purchases, plus boosted rewards in several categories, including travel purchased through Chase Ultimate Rewards, dining, drugstores and Lyft purchases. As a welcome bonus, you can earn $200 after spending $500 on purchases within the first 3 months of opening an account.
With the Discover it Cash Back, you’ll have the opportunity to earn a generous 5% cash back bonus on everyday, useful categories (up to $1,500 upon enrollment each quarter, then 1%) that rotate each quarter. Also, Discover will automatically match all of your cash back earnings at the end of the first year. However, if you anticipate spending far more than the $1,500 quarterly limit, then a flat-rate cash back card like the Citi Double Cash Card may be a better option for you.
Cardholders get unlimited 1.5% cash back on all purchases, and the rewards don’t expire for the life of the account. With no annual fee, this is a great, gimmick-free option designed for simplicity lovers. However, there are flat-rate cash back cards with higher rates. For example, there’s the Citi® Double Cash Card, which earns 2% cash back, 1% when you buy and 1% as you pay off your purchase.
Offering 1% on general purchases (excluding gift cards) and then an additional 1% cash back as you pay off those purchases, the Citi Double Cash boasts one of the most competitive rewards rates of all cash back cards. Cash back rewards can also be converted to ThankYou points, which can be redeemed for travel purchases, gift cards and more for a rate of $1 cash back to 100 ThankYou points. While the long-term value is great, the lack of a sign-up bonus does detract from some of this card’s appeal. Also, the rewards will expire if the card isn’t used in more than 12 months, so you need to remember to use the card every so often if you don’t want your rewards to go to waste.
For most people, spending is cyclical. You might do a lot of online shopping during the holiday months, but your summer budget may skew more heavily toward gas or travel. With the Bank of America® Cash Rewards, you have the freedom to change your bonus category once per calendar month, allowing you to tailor your rewards to your spending habits. Bonus categories include gas, online shopping, travel, drug stores, dining and home improvement/furnishings. Cardholders earn 3% cash back on the category of their choice, plus 2% cash back at grocery stores and wholesale clubs (on first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%). If you plan ahead, this card can be exceptionally valuable, especially since there’s no annual fee.
Offering supreme cash back rates (6% for up to $6,000 each year, then 1%) for purchases at U.S supermarkets, this is a fantastic option for those who frequently cook at home. Plus, the introductory offer of a $300 statement credit after you spend $3,000 in the first 6 months is a great way to easily pay for a trip or two to the grocery store. The annual fee of $95 (waived for the first year) could be a setback for some people, but it’s to be expected for a card with such high rewards rates.
The Blue Cash Everyday is all about rewarding essential purchases, which is why it’s a great addition to nearly anyone’s wallet. This card offers 3% cash back at U.S. supermarkets (up to $6,000 in purchases annually, then 1%), 2% at U.S. gas stations and at select U.S. department stores and then 1% on general purchases. Plus, there’s no annual fee. On the flip side, the yearly $6,000 limit on the 3% purchase category could cut into your potential earnings.
If you consider yourself a foodie or a thrill-seeker, you might like the SavorOne for its generous 3% cash back on dining and entertainment purchases. Plus, even when you feel like eating in, you’ll earn 2% cash back at grocery stores. The fact that there are no spending caps for these categories makes this card even more exciting for big spenders. If you like the sound of 3% cash back on dining, you might also consider the Chase Freedom Flex℠, which offers that and rewards on several other everyday categories.
Those who travel often will really benefit from earning 5% cash back on travel purchased through Chase Ultimate Rewards ®. You can also earn 5% cash back on eligible purchases in rotating categories (quarterly activation required) and 3% cash back on drugstore purchases and dining at restaurants. If the idea of keeping track of all of the cash back categories and the rules that come with each makes your head spin, you might want to look for a different cash back card. That, along with remembering to enroll in the 5% bonus category each quarter, requires some attention and may not be ideal for everyone.
This product is a top-notch student card: Earn a $20 statement credit each year for up to the next 5 years that you have a 3.0 GPA or better. In addition, earn 5% cash back on rotating categories (then 1%; activation required each quarter and $1,500 limit each quarter), up to $300 a year on the 5% offer. Then, match your earnings to get $600 at the end of your first year. There’s no annual fee, and there’s no foreign transaction fee.
This is a great card for on-the-go consumers because of the 2% cash back on restaurant and gas station purchases (on up to $1,000 in combined spending per quarter, then 1%). That means you can earn up to $80 a year on the boosted rewards. As an added bonus, that $80 would become $160 at the end of your first year, thanks to Discover’s first-year cash back match for new cardholders. Also, there’s no annual fee, and there’s no foreign transaction fee. Keep in mind, however, that although the Discover it chrome rewards some everyday purchases, it is missing one key category for boosted rewards: groceries, which earn just 1% cash back.
Summary of the Best Cash Back Credit Cards
Credit card
Best for:
Cash back %
Annual fee
CreditCards.com rating
Chase Freedom Unlimited®
Introductory APR on purchases
3% cash back on dining
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
3% on category of your choice
Also 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases
What are cash back credit cards and how do they work?
Cash back credit cards are a type of rewards credit card. Years ago, credit cards offered a line of credit with few additional rewards or benefits. Now, many credit cards offer cash back and other types of rewards as an incentive to use the card. Here’s how it works.
A percentage of each eligible purchase you make with your card is rewarded back to you. Let’s say you spend $500 each month in a category with a cash back rate of 5%. That means you are earning $25 a month, just for card loyalty ($500 X .05 = $25). Sometimes there are spending limits, which is why it’s important to read through a card’s terms before applying.
When you redeem your cash back, you’ll probably have several options. Most cards allow you to redeem your cash back as a statement credit, which will lower your credit card balance. Direct deposits to your bank account, gift cards and checks are also common redemption options.
You’ll usually need at least fair credit to get a cash back card, so make sure you meet the credit requirements before applying. Cash back cards are best for people who can spend responsibly and pay their bill in full each month. If there’s a chance you might carry a balance from time to time, you’re probably better off with a low interest credit card.
At a high level, cash back cards are as simple as that. Read our full guide to how cash back credit cards work to learn more.
Types of cash back credit cards
Nearly every cash back card on the market falls into one of three categories, each with its own benefits.
Flat rate
Cash back is straightforward, and flat-rate cash back is even more so. With a flat-rate card, you’ll earn a set amount of cash back, usually between 1% and 2%, on every purchase. Since there’s no need to strategize spending, this type of cash back card is great for first-time cardholders and those who want to use just one credit card for the majority of their expenses. Simply set and forget until you want to redeem your rewards.
A great option: the Citi® Double Cash Card. Earn 1% cash back on general purchases (excluding gift cards) and an additional 1% as you pay off those purchases, effectively 2%.
Tiered categories
This type of credit card will offer higher cash back rates – usually anywhere from 2% to 6% – in one or more categories, then 1% cash back on all other purchases. Common cash back categories include dining, groceries, travel and gas. Credit card issuers use merchant category codes to classify and reward your purchases.
A cash back card with tiered categories is a great choice if you have regular expenses within particular categories, like gas or groceries. One of the best ways to maximize your cash back earnings is to use a tiered card for your most common purchases while using a flat-rate card for miscellaneous expenses. That way, you get the best of both worlds and you never have to settle for a low rate of cash back.
A great option: the Chase Freedom Flex℠. Earn 5% cash back on rotating bonus categories that you must activate each quarter (on up to $1,500 per quarter), 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining and 3% cash back on drugstore purchases.
Rotating or customizable bonus category
This type of cash back card is very similar to a tiered category card, the main difference being that the categories change, usually each quarter. There are even cards that allow you to choose and change your own bonus category once per calendar month, like the Bank of America® Cash Rewards credit card. Rotating categories often correspond with the time of year, which can help you make the most of seasonal expenses, like holiday purchases or a summer road trip.
A great option: the Discover it® Cash Back. Enroll every quarter to earn 5% cash back in a new category (on up to $1,500 per quarter, then 1%).
Common cash back categories
Each credit card offers unique perks, and the rewards landscape is always expanding. In fact, as a result of the coronavirus pandemic, some credit cards have added new rewards categories like streaming service subscriptions and food delivery services.
That said, there are a few fan-favorite bonus categories you can find with many rewards credit cards. Here are some of the most popular rewards categories.
Groceries – This is one of the most common and useful categories, especially for large families. Just be sure that your grocery store of choice actually qualifies for the rewards category; some grocery rewards programs exclude wholesalers like Costco and superstores like Target and Walmart.
Gas – Unless you use public transportation, gas is one of those unavoidable expenses. Why not earn cash back on those purchases?
Travel – If your idea of fun involves boarding a plane, there’s good news: Plenty of credit cards will reward your travel purchases with points or miles you can redeem for more travel.
Dining – Whether you prefer a drive-through, sit-down, or takeout experience, there are lots of credit cards that reward restaurant purchases.
Pros and cons of using a cash back card
Cash back cards are appealing for a number of reasons, but two of the biggest benefits are simplicity and flexibility.
While many people love cash back cards, they do have limitations. If you’re contemplating whether a cash back card is right for you, here are some advantages and disadvantages of cash back cards to keep in mind as you make a decision.
Pros
Earning rewards is straightforward. Rather than keeping track of the monetary value of point or mile conversions, cash back cards simply give a percentage of your purchase back. This makes them great for credit card beginners and those who like to keep it simple.
Rewards are flexible. Once you redeem your cash back for a statement credit or direct deposit, that money can go toward buying anything you want.
They often come with welcome bonuses. Welcome bonuses for cash back cards are often $150 or more, some even as high as $300. While a welcome bonus isn’t something you should base your entire decision on, it can be a good tie-breaker if you’re deciding between a few cards.
Earn rewards for the purchases you’re already making. With so many cash back cards on the market – rewarding everything from groceries to streaming services – you have the freedom to choose one that matches the way you already spend. That way, you don’t feel like you have to spend more money than you normally would to earn rewards.
Build and maintain your credit score. Cash back cards encourage healthy credit behavior by rewarding a paid balance with cash rewards. Your positive activity is then reported to credit bureaus, which can help your credit score climb over time.
Many have no annual fee. While some cash back cards do offer premium rewards rates in exchange for an annual fee, you can find plenty of great offers with no annual fee. That way, you can carry the card without worrying whether it’s actually costing you money to have. This is different from travel rewards cards, which more often do come with annual fees.
Cons
Cash rewards are often less valuable than travel rewards. While the value of cash back is pretty straightforward, the value of travel rewards depends on what card you have and how you redeem your points or miles. However, in terms of dollar value, you can usually get more bang for your buck using a travel rewards card – but keep in mind that those rewards will be less flexible than cash back.
They lack travel benefits. Don’t expect many travel benefits outside basic car rental insurance with cash back cards.
Some cash back cards have spending limits on rewards categories. Some tiered rewards cards have a quarterly or annual spending cap for their boosted cash back rate. For example, you might earn 5% cash back on only the first $1,500 you spend each quarter. After that, you would earn just 1% cash back until the next quarter.
You may have to sign up each quarter to qualify for boosted cash back rewards. Activating 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.
Carrying a balance negates any rewards you earn. Because rewards credit cards do pose an interest rate higher than the rewards rate, it’s critical that you pay off your balance each month or your interest will surpass your cash back.
How to choose a cash back credit card
With so many cash back cards to choose from, it helps to know how to compare them. Here are a few of the most important factors to consider.
Rewards rates and categories
It may seem obvious, but you should choose a card with a rewards structure that fits your lifestyle and spending habits. For some, that might mean a flat-rate card that rewards all purchases at 1.5%. For others, that might mean a tiered rewards card that gives a higher cash back rate at grocery stores and then just 1% on everything else.
To decide which cash back categories are going to be the most useful to you, take a look at your expenses over the last month. You might be surprised to learn that you’re spending more on takeout than at the grocery store, or that your gas station fill-ups cost more each month than your online shopping habit. Whatever you find, looking at a real month of expenses can help you confidently pick the best cash back card for you.
Annual fee
Luckily, there are plenty of lucrative cash back cards that come without an annual fee, which are great for credit card beginners and those who don’t plan to spend a lot on their card. However, big spenders might find the higher rewards rates offered by annual fee cards to be worth it.
If you’re trying to decide, some quick math can give you an idea of whether it makes sense to choose a card with an annual fee. For example, if the annual fee is $100 and the cash back rate is 5% at restaurants, you would have to spend $2,000 at restaurants before making up the cost of the annual fee (2,000 X .05 = 100). Since most cash back cards have more than just one bonus category, you might need to do the math for each to get the full picture.
Welcome bonus
Most cash back cards have a welcome bonus, usually around $150 after a set amount of spend within a specific timeframe. Cash back cards with an annual fee may have higher offers.
Other perks and benefits
Some cards come with extra perks that add long-term value. For example, the Wells Fargo Cash Wise Visa® card is famous for offering up to $600 worth of cellphone protection against covered damage and theft (subject to a $25 deductible) to cardholders who use the card to pay their monthly phone bills. Other common perks to look out for include auto rental insurance, price protection and travel insurance.
Research methodology: How we picked the best 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
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, but some also allow you to redeem as a bank direct deposit, gift card, charitable donation or even a credit toward a loan balance. 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.
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. 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. We also 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. Features like auto rental insurance and price protection are often overlooked but can save you hundreds if you remember to use them.
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.
Frequently Asked Questions
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 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.
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.
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.
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.
To maximize your cash back earnings, you should use your cash back cards for the bulk of your purchases, especially larger ones. For example, if you’re able to pay rent with a credit card without incurring a fee, that’s an easy way to earn a chunk of cash back each month.
You should also use a combination of cards strategically, making sure you’re earning a high rate of cash back on your most frequent expenses. If you spend $100 at the grocery store each week, you should be using a card that rewards groceries at a rate higher than 1%. You can also double up on cash back by using cash back apps like Rakuten.
The most valuable 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.
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.
Since most people have a variety of expenses, a combination of cash back credit cards is probably best if you want to maximize your earnings. However, if you’re just starting out with credit cards or only want to have one card, a flat-rate cash back card is probably the best choice. Rather than tethering you to a specific category or two, flat-rate cards provide long-term value no matter how your budget changes.
The answer depends on your spending habits and how you want to redeem your rewards. Cash back cards are good for those who wish to simply press a button to redeem their rewards for cash. It’s also less common for cash back cards to charge an annual fee, another perk for those who like to keep it simple. On the other hand, travel rewards cards typically offer more bang for your buck in terms of rewards value. However, redeeming your travel rewards may require some extra research and comparison in order to get the best value. Read our full comparison of cash back and travel rewards.
About the Author
Mariah Ackary
CreditCards.com writer Mariah Ackary is passionate about financial literacy for all, especially women. Mariah's work has been cited in such media as Forbes, Fox Business and CNBC. An expert in rewards and small businesses, she does the research to make complicated financial topics more approachable for her readers. Send your questions to mackary@creditcards.com.
About the Editor
Laura Mohammad
CreditCards.com Senior Editor Laura Mohammad writes, edits and coaches extensively on all things credit cards and works to bring you the most up-to-date analysis and advice. In Laura's 20+ years as a financial and personal finance journalist, her work has appeared in such publications and websites as The New York Times, The Associated Press, StreetAuthority.com and American City Business Journals. You can reach Laura at laura.mohammad@creditcards.com.
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