Credit Cards with Cash Back: In today’s financial landscape, cash back credit cards have become a popular choice for consumers looking to get more value from their everyday spending.
These cards offer a percentage of your purchases back as cash rewards, making them an attractive option for those seeking to maximize their spending power.
In this article, we’ll explore the top 10 cash back credit cards available, focusing on options suitable for consumers.
Understanding Cash Back Credit Cards
Cash back credit cards reward cardholders by returning a portion of the money spent on purchases. Typically, this reward is a percentage of the transaction amount and can vary depending on the card and the spending category. For instance, some cards offer higher cash back rates for specific categories like dining or fuel, while others provide a flat rate across all purchases.
Factors to Consider When Choosing a Cash Back Credit Card
When selecting a cash back credit card, it’s essential to consider several factors to ensure it aligns with your spending habits and financial goals:
Foreign Transaction Fees: If you travel frequently, a card with no foreign transaction fees can be beneficial.
Annual Fees: Some cards may charge an annual fee, which can offset the benefits of the cash back earned. It’s crucial to weigh the fee against the potential rewards.
Cash Back Rates: Look for cards that offer competitive cash back rates, especially in categories where you spend the most.
Spending Categories: Some cards provide higher cash back percentages in specific categories such as groceries, fuel, or dining. Choose a card that matches your primary spending areas.
Redemption Options: Consider how the cash back can be redeemed—whether as statement credits, direct deposits, or other options.
Top 10 Cash Back Credit Cards
Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card is renowned for its straightforward rewards structure.
Features and Benefits:
- Cash Back Rate: Earn an unlimited 2% cash back on all purchases, making it ideal for those seeking simplicity without tracking bonus categories.
- Welcome Offer: New cardholders can receive a $200 cash rewards bonus after spending $1,000 in purchases within the first 3 months.
- Introductory APR: Enjoy a 0% intro APR for 15 months on purchases and qualifying balance transfers; after that, a variable APR applies.
- Annual Fee: $0, ensuring that your rewards aren’t offset by yearly costs.
Pros:
- High flat-rate cash back on all purchases.
- Generous introductory APR period.
- No annual fee enhances net rewards.
Cons:
- Lacks bonus categories for higher cash back in specific spending areas.
- Balance transfer fee applies.
Citi® Double Cash Card
The Citi® Double Cash Card offers a unique approach to earning rewards.
Features and Benefits:
- Cash Back Rate: Earn 2% on every purchase with 1% when you buy and an additional 1% as you pay for those purchases.
- Balance Transfers: Offers an introductory 0% APR on balance transfers for 18 months; after that, a variable APR applies.
- Annual Fee: $0, allowing you to maximize your cash back without incurring extra costs.
Pros:
- Encourages responsible spending by rewarding payments.
- Extended balance transfer offer.
- No annual fee.
Cons:
- No sign-up bonus.
- Foreign transaction fees apply, making it less ideal for international use.
Chase Freedom Unlimited®
The Chase Freedom Unlimited® card combines a solid cash back rate with versatile redemption options.
Features and Benefits:
- Cash Back Rate: Earn 5% on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstore purchases, and 1.5% on all other purchases.
- Welcome Offer: Earn an additional 1.5% on all purchases in the first year, up to $20,000 spent—worth up to $300 cash back.
- Introductory APR: 0% intro APR for 15 months on purchases and balance transfers; after that, a variable APR applies.
- Annual Fee: $0, providing value without added cost.
Pros:
- Elevated cash back rates in popular spending categories.
- Lucrative first-year earning potential.
- Access to Chase Ultimate Rewards® for flexible redemption.
Cons:
- Requires activation for certain bonus categories.
- Balance transfer fee applies.
Discover it® Cash Back
The Discover it® Cash Back card is known for its rotating bonus categories and first-year rewards match.
Features and Benefits:
- Cash Back Rate: Earn 5% cash back on everyday purchases at different places each quarter, such as Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn 1% on all other purchases.
- Cash Back Match: Discover will automatically match all the cash back you’ve earned at the end of your first year.
- Annual Fee: $0, ensuring you keep all the cash back you earn.
Pros:
- Potential for high cash back in rotating categories.
- First-year cash back match effectively doubles your rewards.
- No annual fee.
Cons:
- Requires quarterly activation for bonus categories.
- Bonus categories may not align with everyone’s spending habits.
Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express offers exceptional rewards for families and commuters.
Features and Benefits:
- Cash Back Rate: Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% on select U.S. streaming subscriptions, 3% at U.S. gas stations and on transit, and 1% on other purchases.
- Welcome Offer: Earn a $250 statement credit after spending $3,000 in purchases within the first 6 months.
- Annual Fee: $95, which can be offset by the high cash back rates if you maximize the rewards.
Pros:
- Outstanding cash back rates in everyday spending categories.
- Valuable welcome offer.
- Benefits frequent grocery shoppers and commuters.
Cons:
- Annual fee applies.
- Cash back at U.S. supermarkets is capped at $6,000 per year.
Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card is tailored for those who enjoy dining and entertainment.
Features and Benefits:
- Cash Back Rate: Earn 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases.
- Welcome Offer: Earn a one-time $200 cash bonus after spending $500 on purchases within the first 3 months.
- Annual Fee: $0
Pros:
- Great for those who frequently dine out and enjoy entertainment.
- No annual fee, making it easy to earn rewards without additional costs.
- Generous welcome bonus with a low spending requirement.
Cons:
- Superstores like Walmart and Target are excluded from grocery rewards.
- Other cards offer higher cash back rates for general purchases.
U.S. Bank Cash+® Visa Signature® Card
The U.S. Bank Cash+® Visa Signature® Card stands out for its customizable rewards.
Features and Benefits:
- Cash Back Rate: Earn 5% cash back on your first $2,000 in combined eligible purchases each quarter in two chosen categories, 2% on one everyday category (like gas or groceries), and 1% on everything else.
- Welcome Offer: Earn a $200 bonus after spending $1,000 in eligible purchases within the first 120 days.
- Annual Fee: $0, making it a cost-effective option.
Pros:
- Customizable 5% categories let you maximize rewards based on your spending.
- No annual fee, making it an excellent long-term option.
- Strong welcome bonus with a reasonable spending requirement.
Cons:
- Requires activation of bonus categories each quarter.
- The 5% cash back is capped at $2,000 per quarter.
Citi Custom Cash® Card
The Citi Custom Cash® Card is ideal for those who have variable spending habits.
Features and Benefits:
- Cash Back Rate: Earn 5% cash back on your top eligible spending category each billing cycle (up to $500 in purchases, then 1%), and 1% on all other purchases.
- Welcome Offer: Earn $200 in cash back after spending $1,500 on purchases in the first 6 months.
- Annual Fee: $0, making it an easy card to keep.
Pros:
- Automatically adjusts to your highest spending category for 5% rewards.
- No need to manually activate bonus categories.
- No annual fee, making it a good choice for long-term use.
Cons:
- The 5% category is limited to $500 in spending per billing cycle.
- Not ideal for those who want a high flat-rate cash back card.
Bank of America® Customized Cash Rewards Credit Card
The Bank of America® Customized Cash Rewards Credit Card allows users to choose their bonus category.
Features and Benefits:
- Cash Back Rate: Earn 3% cash back in a chosen category (such as gas, online shopping, dining, travel, drug stores, or home improvement), 2% at grocery stores and wholesale clubs (on up to $2,500 in combined 3% and 2% purchases per quarter), and 1% on all other purchases.
- Welcome Offer: Earn a $200 online cash rewards bonus after making at least $1,000 in purchases within the first 90 days.
- Annual Fee: $0, making it an accessible option for most consumers.
Pros:
- Customizable 3% category allows for personalized rewards.
- No annual fee, making it a low-risk option.
- Solid welcome bonus for new cardholders.
Cons:
- The 3% and 2% rewards are capped at $2,500 per quarter.
- Requires category selection to maximize rewards.
Capital One Quicksilver Cash Rewards Credit Card
The Capital One Quicksilver Cash Rewards Credit Card is an excellent choice for those who prefer a simple, flat-rate rewards structure.
Features and Benefits:
- Cash Back Rate: Earn unlimited 1.5% cash back on all purchases with no rotating categories or spending caps.
- Welcome Offer: Earn a one-time $200 cash bonus after spending $500 on purchases within the first 3 months.
- Annual Fee: $0, ensuring you keep all your rewards.
Pros:
- Easy-to-understand rewards with no category restrictions.
- No annual fee, making it a great long-term card.
- Includes travel benefits and no foreign transaction fees.
Cons:
- 1.5% cash back is lower than some competitors offer in specific categories.
- No ability to earn higher rewards on particular types of purchases.
FAQs about Credit Cards with Cash Back
What is a cash back credit card?
A cash back credit card is a type of rewards card that offers a percentage of the amount spent on purchases back to the cardholder. This return can be in the form of statement credits, checks, or direct deposits, making it a popular choice for everyday spending.
How does cash back on credit cards work?
When you use a cash back credit card, you earn a specified percentage of your spending back. The rate can vary by card and the type of purchase. For example, some cards offer higher cash back rates on groceries or gas, while others provide a flat rate on all purchases.
Are there different types of cash back credit cards?
Yes, there are primarily three types of cash back credit cards:
- Flat-rate cards offer the same cash back rate on all purchases.
- Tiered-rate cards provide higher rates on specific categories like dining or travel and a lower rate on other purchases.
- Rotating bonus category cards offer higher cash back rates in specific categories that change quarterly and require activation.
What should I look for when choosing a cash back credit card?
Consider the following factors:
- Cash back rate: How much cash back will you earn on your purchases?
- Bonus categories: Are the bonus categories suitable for your spending habits?
- Annual fee: Does the card charge an annual fee, and if so, does the cash back earned offset this cost?
- Sign-up bonus: Is there an introductory offer or sign-up bonus that adds extra value?
- Redemption options: How can you redeem your cash back, and are there any restrictions or minimum thresholds?
Are cash back credit cards worth it?
Cash back credit cards can be very worthwhile if you pay off your balances in full each month to avoid interest charges. They are most beneficial for those who use their cards regularly on purchases that align with high cash back categories.
Can I lose my cash back rewards?
Yes, cash back rewards can expire or be forfeited if you close your account or fail to meet certain terms, such as a minimum spending requirement or account inactivity. Always read your card’s terms and conditions to understand the reward structure and redemption options.
Is there a limit to how much cash back I can earn?
Some cards may have a cap on the amount of cash back you can earn in specific categories or overall. It’s important to check if there are any limits and plan your spending accordingly to maximize your rewards.
Conclusion
Choosing the right cash back credit card depends on your spending habits and financial goals. If you want simplicity, a flat-rate cash back card like the Wells Fargo Active Cash® Card or Capital One Quicksilver might be the best fit. For those who enjoy maximizing rewards, category-based cards like the Discover it® Cash Back or Citi Custom Cash® Card offer excellent benefits.
Before applying, consider factors such as annual fees, cash back limits, and bonus categories to ensure you’re getting the most value from your credit card.
