Cashback credit cards offer easy-to-understand and tangible benefits to users. Among the dizzying range of rewards, cash back credits are essential due to their simplicity.
The returns you generate from making purchases using a credit card don’t require redeeming, transfers, or strategic conversion. You get a monthly bill statement credit, or the cash is deposited directly in the account.
Some cashback cards offer high rates depending on your spending categories like gas or groceries, and others provide lower prices on everything else. Others deliver bonus cashback on monthly payments and others on purchases.
However, in this post, we focus on the best cash back cards and factors to consider when selecting one.
Factors to Consider When Choosing Credit Cards
Do you want to apply for a credit card? If yes, then this is the best place! However, everything depends on how long you will track rewards categories and how you use your money.
1. Annual Fee
No one wants to pay the yearly fee, and most of the cash cards don’t charge the annual fee. Although the annual cost can work out better. The reason being, cards with annual fee come with more lucrative rewards.
2. Sign-Up Bonus
Never disregard cash cards without a sign-up bonus. Bonuses are not frequent with cash cards. Additionally, gifts are meager if you make a comparison with those of travel cards. A higher reward rate on a single card can be a better thing than a card with a bonus at a lower price.
Several cards will allow you to take back your cash as a statement of credit. This can lower your next credit card bill. Other credit cards give you a room to redeem the rewards for more than cash back. Others will allow you to transfer points to a different card program where its strategic use can yield a better value.
4. 0% introductory APR period
There’s no worse feeling than carrying a monthly balance that comes with rewards card. Some cards provide a 0% APR initial periods on balance transfers or new purchases. Carrying balances from month to month will incur higher interest rates that will eat up the value of your rewards.
Types of Cashback Credit Cards
a) Flat Rate Credit Cards
Flat rate cards provide a set percentage of cash back regardless of what you buy using the card. A proper benchmark is a 1.5% cash reward on everything you purchase. Although, a few cards give you back 2% or more
Examples of flat-rate include Citi® Double Cash Card and Capital One®.
These cards earn a higher rate in different spending categories such as gas, groceries, and usually 1% on other things. With the other cards, you must choose the types that earn higher rewards.
Examples include a blue cash card that earns 6% back in supermarkets up to $6,000 spent annually. Capital One is one example that pays 3% of the money back on other purchases.
c) Rotating categories
Rotating bonus category cards have an increased cashback rate (5%) that changes periodically, usually after three months. All other things earn 1%. You must “activate” or “opt-in” all the bonus categories each quarter.
Examples include: Chase Freedom® and Discover it® Credit card.
|Credit Card||Rewards Rate||Best For||Intro Offer||Annual Fee|
|Discover it® Cash Back||1%-5%||Bonus rewards: Quarterly categories and a cash-back match||Cashback Match™||$0|
|Alliant Cashback||2.5%||Nice returns for high spenders||$0||Introductory fee is $0for during the first year, then $99|
|Citi® Double Cash-card||1%-2%||Flat-rate cash back and High ongoing rate||$0||$0|
|Capital One® QuicksilverOne® Rewards Credit Card||1.5%||Fair credit||Intro offer is $0||Annual fee $39|
|Discover it® Cash Back Card||1.5%||Gig work and side hustles||Cashback Match||$0|
|U.S. Bank Cash+™ Signature® Card||1%-5%||Customizable rewards and a wide range of categories||$150||$0|
|Chase Freedom||1%-5%||Bonus rewards: cash bonus + Quarterly categories||$150||$0|
|Capital One® Savor®||1%-4%||Bonus rewards: entertainment and Dining||$300||First year: $0 introductory fee, then afterwards $95|
|Bank of America® card||1%-3%||Customizable rewards or Big cash bonus||$200||$0|
|Capital One® Quicksilver®||1.5%||Flat-rate cash back: 0% period for all purchases + sign-up bonus||$150||$0|
|Chase Freedom Unlimited®||1.5%||Flat-rate cash back: 0% period for all purchases + sign-up bonus||$150||$0|
|Blue Cash Preferred® Card||1%-6%||Bonus rewards: Gas, groceries, streaming, commuting||$250||$95|
This is a credit card that gives you cash back returns on every purchase you make, making you ruck up bonuses. Discover it cash back card helps you save cash with maximum discounts, thus boosting the value of gift cards.
Your Cashback Bonus will never expire, and you can redeem any amount of money at any time.
You will earn 5% cashback on different places such as grocery stores and gas stations to quarterly maximum each time you activate the card. The good news is: earning potential will not stop there! You’ll automatically receive 1% cashback on every purchase you make with this card.
After you’ve earned all the cash back, Discover will offer many ways to help you redeem everything made.
If you prefer to cash out, you can choose between receiving a statement credit on the following credit card bill and having the cash deposited in your bank account directly. It’s an easy and quick method to pay yourself back.
- No annual fee
- Intro APR period on balance transfers and purchases
- It comes with bonus cash returns categories
- Your cashback match after the first year ends
Activating your bonus categories can be a stressor
Alliant Cashback is among the highest-earning and flat-rate reward cards available in the market. If you are an Alliant cardholder, you can earn up to 2.5% cash on all purchases you make. Additionally, this card features a low standard variable with a yearly annual percentage rate of 11.74% to 14.74%, but this will depend on your creditworthiness.
You’ll have to pay a $99 annual fee and no foreign transaction fee.
Alliant card has some Visa signature benefits that include roadside dispatch, travel accident insurance, purchase protection, theft protection, and auto rental collision damage. Also, it works genuinely with Apple pay, Samsung pay, and google pay with a generous credit line.
It’s meant for people who overspend and features maximum cashback earnings of $ 250 per billing cycle.
- It comes with a high cashback rate
- Has no foreign transactions
- It has an annual fee worth $0, then $99. Also, you’ll have to spend $4000 annually
Citi cards can reward you in two different ways. Therefore, there’s no need to spend more cash to earn more. At first, you’ll get a 1% money back on the purchases you make. Later, when making payments for the shopping– whether over time or at once, you’ll receive an additional 1% cash on credit payments.
When you use $500 monthly with this card, you get $120 cash back at the end of the first year of getting the card.
You can also get exclusive access to buy tickets for many events such as presale tickets and other experiences for the most anticipated sporting events, concerts, and dining experiences. Citi Cash Card has an identity theft solution.
The 24-hour fraud protection will alert you in case there’s unusual activity on your account.
- No bonus categories to spending limits or track
- Has a 24-hour fraud protection alert
- No annual fee
- Unlimited 1% when buying
- 3% Balance transfer fee
- It lacks an introductory APR on purchases
The capital one cash card is designed for people with average or fair credit. With this card, you get a 1.5% cash return on each purchase you make; that’s a moderately good rate. Although, you should pay an annual fee that sums up to $39.
Other cards for average or fair credit don’t come with high credit limits, but capital One will give you access to a top credit line immediately you make the five monthly payments.
It has other platinum MasterCard benefits like Travel Insurance. You can set an auto-pay system for your account, and later on, your payments will be processed instantly every month.
Furthermore, with this credit card, you can set up personalized text reminders or email essential in making you maintain a top position in your account.
- Comes with an unlimited 1.5 cash return on purchases made
- It has a pathway to a higher credit line immediately after making on-time payments
- It’s potential to qualify with several credit issues
- No sign-up bonuses
- High variable APR
The new Discover it isn’t flashy as the competitors. It’s an excellent card for gig works and side hustles. It offers incentives and firm footing for business owners who loves simple experience.
With Discover it, you can hit the ground hard while running as it has a flat 1.5% cashback rate on every transaction that you make for 12 months, no annual fee, and low intro APR.
You can also redeem any amount of your cash back at any time, and the rewards will never expire. The card also allows you to add up to 50 employee cards freely that comes with spending restrictions. But this isn’t a stressor as you can earn rewards meant for all purchases done by the card.
With a $0 fraud liability guarantee, you will be confident that you can’t fall victim to any unauthorized purchases when using your Discover card.
- It has no blackout dates for travel
- You can redeem any time
- No expiration
- You can redeem gift cards, donations and any direct deposit to any account
- It comes with a low annual spending restriction on gas and supplies
If you are a cardholder who never minds on a hands-on approach to earning rewards, then this U.S Bank Cash card can be your great pick. It comes with more flexibility and choice than most of its competitors. Also, it has a decent amount of cash back on daily purchases.
The card offers a 5% cashback on every two categories of your choice. In other words, you can make $2,000 per square limit. Also2% cash reward for daily categories like grocery stores and gas stations and 1% cash return on all other purchases.
It has a unique balance transfer offer. So if you are a new user, you’ll receive a 0% APR introductory on every balance transfers during the first 12 billing processes.
Additionally, it comes with some extra perks that make it a perfect card for travelers. It has a car rental insurance where in case of theft or damage, you’ll receive reimbursement where you paid using the card.
- No annual fee
- It comes with bonus cashback groups
- Lacks minimum redemption amount
- Cash can’t be transferred to other rewards program
- Requires foreign transaction fee
- You can’t redeem money through paper checks
Chase freedom allows you to earn a 5% cashback in daily transactions such as restaurants, gas stations, and grocery stores. It’s a favorable card to use if you want to fully maximize your cashback. You’ll earn a $150 bonus after spending $500 on every purchase you make in your first three months.
Also, this card helps you earn a 5$ cashback and $1,500 in generalized purchases on all bonus reward sections every quarter. In addition to that, you’ll also receive a 1% cash back on several other purchases. That’s obvious!
Therefore, if you are searching for a flat-rate and a no-fuss cashback card, then this might be your best option.
- Doesn’t come with an annual fee
- Your cashback rewards will never expire
- It has a free credit score that’s updated weekly
- 5% rewards on all rotating categories
- Has foreign transaction costs
- If you want simplicity, then flat-rate cashback is most preferred
It’s a cash back card famously designed with foodies in mind. It comes with a cash reward program with 4% returns on entertainment and dining and 2% on grocery store spending. By the way, this is a lovely card that balances your spending if you’re a cardholder who finds it hard to decide whether to stay in or eat.
Capital one comes with a free and extended warranty protection that’s eligible for items purchased with the credit card. In addition to that, it has 24-hour travel assistance, and in case the card is stolen or gets lost, you will get an immediate replacement card with a cash advance.
Furthermore, it has a Travel Accident Insurance, and you can receive automated insurance for all covered losses without additional charges. You can also pay for Amazon purchases using the card.
It allows you to stay ahead of your spending by receiving a push notification every time your new purchase is approved on the account.
- There’s no foreign transaction fee
- Features a clear definition of entertainment
- Comes with rich rewards on entertainment and dining
- Generous sign-up bonus
- Has a high APR, with no 0% introduction period
- Comes with an annual fee
The Bank of America cash card offers a fantastic rewards rate depending on your choice, providing increased flexibility. This card offers a 3% cash reward on any category of your choice. But whatever the 3% won’t cover, then you’ll either earn 1% to 2% on.
However, it lacks an annual fee and has a $200 online money rewards bonus every time you buy things that worth $ 1,000 the first 90 days. It has a 0% APR introductory for all billing cycles on all purchases.
Bank of America card has no expiration on any rewards, and if you’re a favorite rewards member, you can earn up to 25-75% more cash on every purchase you make. Stay protected with this card, and any abnormal frauds will be blocked, and you will get a $0 liability guarantee for any fraudulent transactions.
- It lacks rotating categories
- Your cashback will never expire
- Minimum redemption quantity is quite low
- There are no other rewards choices besides cash back
- $2,500 restriction on bonus rewards on each quarter
10. Capital One® Quicksilver®
Capital One simple credit card helps you rack a lot of things in rewards. It offers 1.5% cashback on each purchase you make and an additional one-time cash bonus worth $150 every time you make investments worth $500 within three months since account opening.
The card comes with a 15-month 0% APR introductory on all balance transfers and purchases. Additionally, with a single reward rate, this card will be your best pick if you don’t want to be concerned about tracking different bonus categories.
Capital One is a great card if you want a simple rewards program. Also, if you’re going to get rid of foreign and annual transaction fees, this can be your best pick.
- Offers a one-time cash bonus of up to $150 for every $500 you spend on purchases
- Has no foreign and annual transaction fees
- Has an introductory 0% APR on all balance transfers and purchases
- It charges a 3% on the balance transfer fee
- No chance to receive a bonus on individual purchases
- Some different credit cards have big sign-up bonuses
- Comes with a high APR
All investments you make with this credit card earn a 1% cashback, and there are no restrictions or caps. Chase Freedom is a simple credit card that offers many significant values, and you can earn up to 1.5% cashback on each purchase you make.
The card also comes with a 0% APR after every 15 months on balance transfers and purchases. It doesn’t charge an annual fee, and if you are a new user, you can earn up to $150 bonus after you make investments worth $500.
Chase Freedom has purchase protection. In other words, you can receive up to $500 per claim in case the item you recently bought gets damaged or stolen. For quick and safer checkout, Chase Freedom has a “tap to pay” technology that other mobile wallets offer.
- No restrictions on cashback
- You can redeem any amount of cash anytime
- The rewards don’t expire
- You can redeem the gift cards
- Lacks bonus categories
12. Blue Cash
Blue cash card coming from the American Express provides ample cashback on daily hard-to-avoid purchases such as fuel, clothing, home goods, and food. You receive a 3% cashback on products bought at the supermarket up to $6,000 yearly limit.
Immediately you arrive at the limit, and you get a 1% cashback on everything you intend to buy at the supermarket with no spending.
Anytime you make $1,000 in purchases within three months, you receive a $150 statement credit. The introductory bonus includes $250 after you spend $1,000 within the first three months. It offers travel benefits that include damage insurance and car rental loss. Also, it comes with a monthly FICO credit score with fraud protection.
- No enrollment
- No rotating categories
- Frequent option for merchandise or gift card
- You can redeem it for previous purchases
- 6% and 3% rewards only available in the U.S
- Doesn’t offer a flat rate for cashback
The Bottom Line
If you always carry a balance from one month to the other, the interest can gobble up quickly than the earning. With that, a low-interest card is the best choice. If you want to transfer the balance, search for a balance-transfer card. Whether you’re a student or you’ve got bad credit, then there are unique cards designed for you.
If you love traveling, there are lovely travel credit cards coupled with hotel card or airline card. But if you’re not sure of the best card to apply, then read the article to get the full insight.