The 9 Best Cash Back Credit Cards of November 2022
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Cash back credit cards are an easy way to make money on everyday spending. As long as you can be responsible for paying off your credit card each month, cash back credit cards allow you to earn a percentage of every transaction — think of it as a discount on every purchase you make.
The best cash back credit cards offer an impressive cash back percentage, but they should also entice you with a hefty welcome offer, low or no annual fees and other perks that set them above typical credit cards.
Choosing the right cash back credit card for you comes down to finding a card that rewards your specific type of spending: groceries, gas, streaming services, you name it. You’ll also need to consider whether other specific rewards cards — like travel cards, grocery cards or even gas cards — are more in line with your needs.
To maximize cash back rewards, consider opening more than one cash back credit card. Just make sure you pay each card off in full every month, and space out credit card applications by at least six months to protect your credit score.
Not sure where to start? We’ve rounded up nine of the best cash back credit cards currently available. Review each credit card carefully to determine which cash rewards credit card(s) may be right for you.
The Best Cash Back Credit Cards
American Express Blue Cash Preferred Card: Best Cash Back Credit Card
Discover it Cash Back: Best Sign-up Bonus
Citi Double Cash Card: Best for Beginners
Capital One SavorOne Rewards Credit Card: Best for Dining and Entertainment
American Express Blue Cash Everyday Card: Best for Groceries
Wells Fargo Active Cash Card: Best Flat-Rate Cash Back Credit Card
Chase Freedom Flex: Best Revolving Cash Back Rewards
Capital One Quicksilver Cash Rewards Credit Card: Best for Travelers
Citi Custom Cash Card: Best for Everyday Spending
Blue Cash Preferred Card
Best Cash Back Credit Card
5 out of 5 Overall
Key Features
6% cash back for groceries and streaming
3% cash back on gas and transit
Disney Bundle statement credit
Get Details
The American Express Blue Cash Preferred Card tops our list of the best cash back credit cards. Though it charges a $95 annual fee (waived for the first year), the card quickly pays for itself in cash back rewards (6% on groceries and streaming) and statement credits ($84 a year for The Disney Bundle).
Blue Cash Preferred Card
Annual fee
$95 ($0 intro annual fee)
Cash back rewards rate
1% to 6% cash back
Sign-up bonus
$300
Regular APR
16.99% to 27.99%
Foreign transaction fee
2.7% per transaction
Balance transfer fees
3% balance transfer fee ($5 minimum fee)
Minimum credit score requirement
Good to excellent (670 and higher)
More Information About American Express Blue Cash Preferred Card
The Blue Cash Preferred Card is the only option on our list that charges an annual fee — but for veteran cash rewards card users, the fee is nominal and quickly pays for itself. With this cash back card, you’ll earn:
6% cash back at U.S. supermarkets (up to $6,000 a year, then 1%)
6% cash back on select streaming services
3% cash back on transit (taxis/rideshare, trains, buses, parking and tolls)
3% back at U.S. gas stations
1% cash back on all other eligible purchases
You’ll also earn $300 in statement credit when you spend $3,000 in purchases within the first six months from account opening. And if that’s not enticing enough, American Express offers an $84 Disney Bundle statement credit ($7 a month), plus extra perks like purchase return protection and car rental loss and damage insurance.
Discover it Cash Back
Best Sign-Up Bonus
5 out of 5 Overall
Key Features
Up to 5% cash back
Unlimited Cashback Match welcome bonus
No annual fee or foreign transaction fee
Get Details
For no annual fee, the Discover it Cash Back credit offers a wealth of incentives. You’ll earn 5% cash back on up to $1,500 in purchases in select bonus categories like groceries, gas stations and restaurants; these change each quarter. But the bigger draw is the unlimited Cashback Match promotion for your first year of spending — it’s the best welcome bonus on our list!
Discover it Cash Back
Annual fee
$0
Cash back rewards rate
1% to 5% cash back
Sign-up bonus
Unlimited Cashback Match in first year
Regular APR
14.99% to 25.99%
Foreign transaction fee
No foreign transaction fees
Balance transfer fees
3% intro balance transfer fee; 5% for all balance transfers thereafter
Minimum credit score requirement
Good to excellent credit (670 and higher)
More Information About Discover it Cash Back
There’s a lot to love about the Discover it Cash Back rewards credit card, including its lack of annual fee and foreign transaction fee. While we don’t love the 5% fee on balance transfers, interested borrowers can take advantage of the 3% introductory balance transfer fee — though there are better balance transfer cards to consider.
Instead, you’ll probably open this cash back credit card to take advantage of its humongous bonus offer: an unlimited Cashback Match reward on your first year of spending. For every cent you earn in cash back, Discover will double it at the end of your first year. If you’ve got the patience to wait out this bonus, it pays off handsomely.
The cash back rewards themselves are nothing to sneeze at. Discover offers 5% cash back each quarter in a different category. For 2022, it breaks down as follows:
January to March: 5% cash back at grocery stores, fitness clubs and gyms
April to June: 5% cash back at gas stations and Target
July to September: 5% cash back at restaurants and via PayPal
October to December: 5% cash back on Amazon and via digital wallets
You’ll earn 1% cash back on all other eligible purchases — so you may want to balance the Discover it Cash Back another cashback credit card for groceries, gas and other purchases when it’s not their featured quarter.
The main drawback of this cash back card is the rewards cap: The 5% is only good up to $1,500 in purchases each quarter. If you rack up significantly more in grocery bills, for example, you’re better off with a cash back credit card with a higher cash rewards cap or no cap at all.
Citi Double Cash Card
Best for Beginners
5 out of 5 Overall
Key Features
Flat-rate cash back rewards
Incentivizes balance payoff
No annual fee
Get Details
Hands down, the Citi Double Cash Card is one of the best cash back credit cards for beginners. Not only does it offer up to 2% cash back, but it also incentivizes borrowers to pay back what they owe rather than carry a balance month to month. More experienced credit card users may prefer a card with more flexible cash rewards and stronger perks, but for newbies, the Double Cash could be the right move.
Citi Double Cash Card
Annual fee
$0
Cash back rewards rate
1% to 2% cash back
Sign-up bonus
$200
Regular APR
16.99% to 26.99%
Foreign transaction fee
3% per transaction
Balance transfer fees
3% intro balance transfer fee ($5 minimum fee); 5% for all balance transfers thereafter ($5 minimum fee)
Minimum credit score requirement
Good to excellent credit (670 and higher)
More Information About Citi Double Cash Card
Every time you swipe your Citi Double Cash Card, you’ll earn 1 Thank You point per $1 spent. Each Thank You point is worth 1 cent — so it’s essentially a 1% flat-rate cash back reward. But you’ll earn another Thank You point (1%) for every dollar you pay off. This means you can earn 2% cash back by paying with your card and paying down your statement balance.
Beginners who are just learning the ropes of responsible credit card management may find this extra incentive helpful. And they’ll want to pay off their outstanding balance every month; the APR can go as high as 26.99% on this card.
There aren’t any special perks to speak of for the Double Cash Card, and the foreign transaction fees and high charges for balance transfers are all unappealing. After you’ve gotten a handle on how cash back credit cards work, you might want to upgrade to a higher-tier card that lets you more easily earn cash rewards — but keep this one open for the boost to your score (lower credit utilization and longer average age of credit).
Capital One SavorOne Rewards Credit Card
Best for Dining and Entertainment
4.5 out of 5 Overall
Key Features
3% cash back on dining, groceries and more
No annual fee or foreign transaction fees
More cash back for qualifying travel bookings
Get Details
Like the American Express Blue Cash Preferred Card, the Capital One SavorOne card offers tiered cash back rewards. You’ll earn 3% cash back on dining, entertainment, groceries and streaming. You might earn more with the Amex, but this Capital One card has no annual fees and no foreign transaction fees — so it may be more beneficial, depending on your spending habits.
Capital One SavorOne Rewards Credit Card
Annual fee
$0
Cash back rewards rate
1% to 5% cash back
Sign-up bonus
$200
Regular APR
17.99% to 27.99%
Foreign transaction fee
No foreign transaction fees
Balance transfer fees
3% balance transfer fee
Minimum credit score requirement
Excellent credit (740 and higher)
More Information About Capital One SavorOne Rewards Credit Card
You won’t pay any annual fee for the Capital One SavorOne card, and you can earn a $200 statement credit bonus if you spend $500 in the first three months from account opening. But the real draw of this tiered cash rewards credit card is the incentive for dining, entertainment, groceries and streaming.
You’ll earn 3% cash back for eligible purchases in all four bonus categories — with no annual cap. That’s right: The reward potential is unlimited. And when you swipe on any other eligible purchases, you’ll still earn 1% cash back.
Travel regularly? Capital One makes it easy. Aside from the lack of forein transaction fees, the SavorOne rewards travelers with unlimited 5% cash back on hotels and rental cars when you book them through Capital One Travel.
American Express Blue Cash Everyday Card
Best for Groceries and Gas
4 out of 5 Overall
Key Features
3% cash back on groceries, online retail and gas
Disney Bundle statement credit
No annual fee
Get Details
While its grocery cash back rewards aren’t as good as the Blue Cash Preferred Card, the American Express Blue Cash Everyday Card still offers strong cash back rewards for groceries and gas — without an annual fee. If you want high cash rewards for these two popular spending categories without worrying about spending $95 a year, the Blue Cash Everyday is probably more your speed.
American Express Blue Cash Everyday Card
Annual fee
$0
Cash back rewards rate
1% to 3% cash back
Sign-up bonus
$200
Regular APR
16.99$ to 27.99%
Foreign transaction fee
2.7% per transaction
Balance transfer fees
3% balance transfer fee ($5 minimum fee)
Minimum credit score requirement
Good to excellent credit (670 and higher)
More Information About American Express Blue Cash Everyday Card
The American Express Blue Cash Everyday Card is made for everyday purchases (go figure!), with a high 3% cash back rewards rate for gas, groceries and online shopping (and 1% on other eligible purchases). You’ll also earn the same Disney Bundle statement credit that the higher-tier Amex Blue Cash Preferred Card receives, but you won’t have to worry about any annual fee.
The bonus is decent: $200 cash back when you spend $2,000 in purchases within six months of account opening. Travelers will also benefit from the car rental loss and damage insurance. Another great perk from the Amex: a $180 Home Chef statement credit ($15 a month).
Wells Fargo Active Cash Card
Best Flat-Rate Cash Back Credit Card
4.5 out of 5 Overall
Key Features
2% flat cash back rewards rate
No annual fee
$600 in cell phone protection
Get Details
Shuffling through stacks of credit cards to determine the right one to swipe for each purchase can get tiresome. For some users, it makes more sense to have one solid flat-rate rewards card — and that’s the Wells Fargo Active Cash Card, which earns 2% cash back on every purchase you make.
Wells Fargo Active Cash Card
Annual fee
$0
Cash back rewards rate
2% cash back
Sign-up bonus
$200
Regular APR
17.99% to 27.99%
Foreign transaction fee
3% per transaction
Balance transfer fees
3% intro balance transfer fee ($5 minimum fee)
Minimum credit score requirement
Good to excellent credit (670 and higher)
More Information About Wells Fargo Active Cash Card
You’ll earn 2% flat-rate cash back on all eligible purchases made with your Wells Fargo Active Cash Card. That flat rate makes it easy to manage and more attractive to borrowers who don’t have the time or energy to track multiple cash rewards bonus categories across multiple cards.
Even if you do like tired cash back rewards cards, the Wells Fargo Active Cash Card is a great secondary option to have in your wallet. Use your primary card in its specific high-rewards category, then use the Wells Fargo card when the other card would only earn you 1% cash back.
You can redeem rewards as a statement credit or as gift cards — or even redeem rewards at an ATM in $20 increments, if you want that cold hard cash.
There’s no annual fee for this card, but be mindful of spending abroad: You’ll pay 3% in foreign transaction fees. If you spend $1,000 in the first three months of account opening, you’ll also earn a tidy $200 welcome bonus.
One final reason we love the Wells Fargo Active Cash Card: You’ll earn up to $600 in cell phone protection against damage or theft when you pay your monthly phone bill using the credit card.
Chase Freedom Flex
Best Revolving Cash Back Rewards
4.5 out of 5 Overall
Key Features
Up to $800 bonus
5% cash back in quarterly bonus categories
No annual fee
Get Details
The Chase Freedom Flex is a strong cash back rewards credit card both in its opening bonus (up to $800) and its ongoing cash rewards in select bonus categories. You’ll have to stay on top of rotating bonus categories (and likely need a backup card for non-qualifying purchases), but when used strategically, the Chase Freedom Flex earns serious cash back.
Chase Freedom Flex
Annual fee
$0
Cash back rewards rate
1% to 5%
Sign-up bonus
Up to $800
Regular APR
17.99% to 26.74%
Foreign transaction fee
3% per transaction
Balance transfer fees
3% intro balance transfer fee ($5 minimum fee)
Minimum credit score requirement
Good to excellent credit (670 and higher)
More Information About Chase Freedom Flex
If you don’t mind staying on top of rotating bonus categories, the Chase Freedom Flex can pay off big time in terms of cash rewards. For 2022, Chase has changed its 5% cash back category each quarter as follows:
January to March: 5% cash back at grocery stores (excluding Walmart and Target) and on eBay
April to June: 5% cash back at Amazon and on select streaming services
July to September: 5% cash back at gas stations, car rental agencies and movie theaters and on select live entertainment
October to December: 5% cash back at Walmart and via PayPal
The cash rewards have a limit: 5% on the first $1,500 each quarter, which makes the max benefit $75 a quarter ($300 a year). But outside of the rotating rewards, there are additional ways to earn cash back with the Freedom Flex:
Earn 5% cash back on travel purchased through Chase Ultimate Rewards
Earn 3% cash back on restaurant purchases (takeout and delivery included)
Earn 3% cash back on drugstore purchases
Earn 1% on all other eligible purchases
The Chase Freedom Flex bonus is also noteworthy: You’ll earn $200 when you spend $500 on purchases in the first three months of account opening. Plus, you’ll earn 5% cash back on grocery purchases (excluding Target and Walmart) up to $12,000 spent in the first year—for up to $600 extra.
The downsides? Despite great cash rewards for travel booked through Chase Ultimate Rewards, the Chase Freedom Flex isn’t a great travel card. The 3% in foreign transaction fees is tough. And the 5% on balance transfers outside the intro period is even tougher.
Capital One Quicksilver Cash Rewards
Best for Travelers
4 out of 5 Overall
Key Features
1.5% flat cash back rewards rate
No annual fee or foreign transaction fee
More cash back for qualifying travel bookings
Get Details
The Capital One Quicksilver Cash Rewards Credit Card is one of the best cash back credit cards for beginners. The 1.5% cash back rewards rate is easy for users to track, but the card is also great for traveling abroad: You’ll earn 5% cash back on select travel purchases in the Capital One Travel portal, and there are no foreign transaction fees.
Capital One Quicksilver Cash Rewards
Annual fee
$0
Cash back rewards rate
1.5% cash back
Sign-up bonus
$200
Regular APR
17.99% to 27.99%
Foreign transaction fee
No foreign transaction fees
Balance transfer fees
3% balance transfer fee
Minimum credit score requirement
Excellent credit (740 and higher)
More Information About Capital One Quicksilver Cash Rewards Credit Card
You can definitely earn more cash back with a tiered cash rewards credit card; however, Capital One pays out 1.5% on all eligible purchases. That makes this a great card to have when your tiered cash rewards credit card will only pay out 1% on a non-bonus category. Not having to track separate bonus categories is also appealing for beginners.
If you plan to travel abroad regularly, the Quicksilver is a great option. It doesn’t charge a foreign transaction fee, and you’ll earn 5% cash back on rental cars and hotels booked through Capital One Travel. You can redeem rewards as a paper check or a statement credit — or even as gift cards.
There’s no annual fee for the Capital One Quicksilver Cash Rewards Credit Card, and you’ll earn a $200 bonus when you spend $500 on purchases in the first three months from account opening.
Citi Custom Cash Card
Best for Everyday Spending
4 out of 5 Overall
Key Features
High cash rewards based on how you spend
No annual fee
Easy-to-earn bonus
Get Details
The Citi Custom Cash Card is unique in that it offers variable bonus categories, based on how you spend. In whichever category you spend the most money in a given billing cycle, you’ll earn 5% cash back — and still earn 1% cash back on all other eligible purchases.
Citi Custom Cash Card
Annual fee
$0
Cash back rewards rate
1% to 5% cash back
Sign-up bonus
$200
Regular APR
16.99% to 26.99%
Foreign transaction fee
3% per transaction
Balance transfer fees
5% balance transfer fee ($5 minimum fee)
Minimum credit score requirement
Good to excellent credit (670 and higher)
More Information About Citi Custom Cash Card
The Citi Custom Cash Card lets you focus on swiping for everyday purchases without thinking about specific bonus categories. At the end of each billing cycle, Citi will automatically determine which category had the highest expenses and apply the 5% cash back. That means you could spend a bunch on groceries in one month and earn 5% cash back — then spend more on gas the next month and earn 5% cash back in that category instead.
A caveat: The 5% cash rewards only apply to the first $500 in that category each billing cycle. That means, at most, the 5% cash back can earn you $25 a month. That cash back comes in the form of Thank You points; each point is worth 1 cent, and you can redeem rewards as a statement credit, direct deposit, check or gift card.
While this card offers great flexibility for credit card users who don’t want to pay close attention, you could maximize rewards more easily with another cash rewards credit card. The City Custom Cash Card also carries hefty fees for balance transfers and foreign transactions.
What Are Cash Back Credit Cards?
Cash back credit cards are a simple type of rewards card: For every dollar you spend, you’ll earn a percentage of the transaction back. Unlike other rewards credit cards, which may offer points or miles with variable value assigned to them, cash back credit cards are more straightforward: You earn actual cash with every swipe.
You can typically redeem rewards as a statement credit, gift card or, in some cases, even a check or direct deposit into a linked bank account. In addition to cash back rewards, the best cash back credit cards usually offer a sign-up bonus as an incentive. You’ll need good to excellent credit to qualify.
Not sure which cash back credit card is right for you? For beginners, the best cash back credit cards are those without an annual fee that pay a flat rate (or flat percentage) of cash back for every purchase. More experienced credit card users may prefer a cash back credit card with tiered or revolving cash rewards; paying an annual fee for higher cash back rewards rates may also be worthwhile.
How Do Cash Back Credit Cards Work?
Cash back credit cards are relatively straightforward, especially when compared to travel credit cards that earn points or miles and have complex conversion formulas. So how do cash back credit cards work? You simply earn back a percentage of every transaction made with the card.
For example, if your cash back credit card earns 2% cash back on every purchase and you spend $200 at the grocery store, you’ll earn $4 back. Depending on the card, you can then claim that $4 as a check or direct deposit, as a gift card or as a statement credit.
Claiming the cash back as a statement credit is usually the easiest method; while you’ll never see the cash back in your hand or your account, it reduces your overall credit card bill. In essence, it’s like you’re buying everything at a discount.
Types of Cash Back Rewards
Not every cash back credit card works the same. In general, there are three main types of cash back rewards cards:
Flat-rate cash back rewards
Tiered cash back rewards
Revolving cash back rewards
Each type of cash back rewards card offers unique advantages — and our list of the nine best cash back credit cards includes options from each category. Choosing among these types of cash back rewards comes down to your personal preferences and how you imagine you’ll use the credit card.
Flat-Rate Cash Back Rewards
The easiest kind of cash back credit card to track is a flat-rate rewards card. These cards typically offer a set flat rate no matter what purchase you make. For example, the Capital One Quicksilver offers 1.5% cash back on everything while the Wells Fargo Active Cash Card earns 2%. The Citi Double Cash Card is also a flat-rate card; its flat rate is just divided into two buckets — 1% for every swipe and then another 1% when you pay off the purchase.
Even flat rate cash back cards sometimes offer variable cash rewards when booking travel through their specific platforms. For example, you’ll earn 5% cash back when you book hotels and rental cars through Capital One Travel.
Tiered Cash Back Rewards
Some of the best cash back credit cards offer their cash rewards in tiers, meaning you’ll earn a higher percentage cash back in certain categories than you will in others. By having multiple cash back credit cards that prioritize different kinds of spending, you can maximize your cash rewards.
For example, the American Express Blue Cash Preferred pays out 6% cash back on groceries and streaming, 3% cash back on transit and gas and 1% cash back on everything else. Meanwhile, the Capital One SavorOne offers unlimited 3% cash back on dining and entertainment. If you use the former on groceries and gas and the latter on dining, you’ll earn more cash back than you would by just using a single card.
Revolving Cash Back Rewards
Rewards credit card beginners should likely stick with a flat-rate card with no annual fee and venture into tiered rewards once they have a better understanding of how cash rewards credit cards work. Perhaps the most complex to track is a cash back credit card with revolving cash back rewards.
For some rewards credit cards, this means you may earn a higher-percentage cash back on dining in the first quarter of the year but then a higher percentage on gas in the second quarter. Some other cards let you choose your higher-tier rewards category on an ongoing basis — and some cards, such as the Citi Custom Cash Card, pay out the highest percentage based on how you spend each billing cycle. If you spend the most money on groceries in a given month, that’s where you’ll earn the highest cashback; but if you drop a bunch of money on gas in the next month, the category shifts, and you’ll earn the highest percentage there.
Common Cash Back Bonus Categories
Tiered cash back credit cards and cards with revolving cash rewards may offer a limited or wide range of bonus categories. Check with your rewards credit card issuers to see how they categorize each purchase so you can maximize your rewards.
Common cash back bonus categories include:
Travel
Dining
Groceries
Gas
Transit
Streaming services
Department stores
Drugstores
Some cash back credit cards may get even more granular. The US Bank Cash+ Visa Signature, for example, has cash back categories for sporting goods stores, gyms, utilities and even furniture stores. (The US Bank Cash+ Visa Signature card did not place on our list of the best cash back credit cards but was a top contender.)
Pros and Cons of Cash Back Credit Cards
The best cash back credit cards offer an easy way for responsible spenders to make money, but they also have their drawbacks.
Pros
Easy way to earn cash: As long as you responsibly pay off your balance each month, cash back credit cards are an easy way to earn cash for making purchases you would’ve already made anyway.
Easier to track than points and miles: Tracking points and miles on travel credit cards can be confusing. With a cash rewards credit card, you earn cash rewards with no tracking.
No or low annual fees: Most cash back credit cards have no annual fee; only our top pick charges a fee — and it’s just $95 a year.
Helpful tool for building credit: As long as you make on-time monthly payments in full, cash back credit cards are a great way to boost your credit score.
Easy-to-obtain sign-up bonus: Welcome bonuses for cash back rewards cards are typically easy to fulfill; just using the card on everyday purchases like groceries and gas should be enough.
Easy to use with other cards to maximize cash rewards: When you have more than one cash rewards credit card, you can swap out cards depending on the purchase to maximize your cash rewards.
Cons
Fewer perks: While cash back rewards cards may offer a few perks, travel credit cards tend to come with more comprehensive perks, like lost luggage insurance and free checked bags
Commonly charge a foreign transaction fee: Of our nine best cash back credit cards, six charge a foreign transaction fee when swiped abroad. This is less common among travel credit cards.
May offer less rewards value than travel cards: With travel cards, points and miles are variable; they may be worth more when used in certain situations.
Lower welcome bonuses: The standard sign-up bonus for a cash rewards credit card is $200 to $300; travel cards may offer $500 or more.
High APRs: Even for borrowers with good to excellent credit, cash back credit cards have high APRs. When using a cash rewards credit card responsibly, however, you should not carry a balance.
What to Look For in a Cash Back Credit Card
Our list of the best cash back credit cards is a great place to start when researching the right cash rewards credit card for your wallet — and often, you’ll want more than one cash back credit card to maximize rewards.
But if you’re looking for a cash back rewards credit card for the first time, what should you prioritize? Here are a few things to consider when looking for the best cash back credit cards for you:
Bonus Categories
Flat-rate cash back rewards credit cards are straightforward and easy to manage — you’ll earn the same percentage of cash back no matter where and how you spend. But if you’re thinking about a tiered or revolving rewards card, you should examine your budget and understand where your biggest expenses are.
If you spend a lot of money on dining and entertainment, look for cash back rewards credit cards with a higher percentage on those expenses. But if you spend more money on groceries and gas, you’ll want a card with higher cash rewards in those bonus categories. For the latter you might even want to think about choosing from our selection of the best gas rewards credit cards .
And if you spend a huge chunk of change each year on travel? Well, you might want to think about opening one of the best travel credit cards instead; these offer larger rewards for travel purchases and typically offer unique travel perks, like free checked bags, late hotel check-out and reimbursement for TSA Precheck.
Sign-Up Bonuses
While longer-term cash rewards rates should be your primary focus when selecting a cash back credit card, it’s still wise to compare sign-up bonuses. Sign-up bonuses for cash back credit cards are usually easy to obtain as long as you use the card for everyday purchases.
If two cash back credit cards offer comparable rewards rates and fees and you can’t choose between them, check out their current bonus offers. Whichever one has the higher bonus is the way to go.
Additional Perks
While even the best cash back credit cards fall short in the perks department when compared to travel credit cards, you still may be able to find a cash back rewards card with decent extras, like rental car insurance, extended warranty coverage, lost luggage reimbursement, cell phone protection and even roadside assistance.
Fees and Rates
Most cash back credit cards have no annual fees, though some of the tiered cards offering the highest percentage cash back may have a small ($95) annual fee. Do some number crunching to see if the higher cash rewards rate will pay for itself — and still earn you more cash back in a given year.
For example, you’ll pay $95 a year for the American Express Blue Cash Preferred but nothing for the American Express Blue Cash Everyday. But if you’ll spend enough each year with the Blue Cash Preferred, you can earn significantly more cash back, even after you account for the $95 fee.
Annual fees aren’t the only fee to consider. Many of the best cash back credit cards on our list charge foreign transaction fees; Capital One’s and Discover’s credit cards are the exception. If you plan to swipe your card outside the country a fair amount, plan to have at least one Capital One or Discover rewards card in your wallet.
Balance transfer fees are less important of an indicator; if you qualify for a cash back credit card, you likely aren’t concerned about paying down debt via balance transfers. (If you are interested in balance transfers, check out our roundup of the best balance transfer credit cards instead.)
Similarly, watch the APRs. They’re usually high for cash back rewards cards, but as long as you plan to pay off your credit card in full every month (or every week for lower credit utilization), you shouldn’t worry about the high interest rates. Those only apply when you carry a balance from month to month.
Level of Expertise
If you’re new to cash back credit cards, stick with a flat-rate rewards card. They usually don’t have annual fees, and you don’t have to track various rewards categories. More experienced credit card users who can manage multiple cards and bonus categories (without printing out a flow chart to keep in their pocket) may receive more benefits from a tiered cash back card.
Minimum Credit Score Requirement
The last thing to ask yourself before applying for a cash back credit card: Do I qualify? Like travel rewards cards, cash back rewards credit card issuers typically require good to excellent credit. Some of the cards on our list are exclusively reserved for excellent credit borrowers (740 or higher).
Frequently Asked Questions (FAQs) About Cash Back Credit Cards
You probably have a lot of questions about cash back cards and we’ve rounded up the answers to the most common ones to help you make a decision.
What Credit Card Gives the Highest Amount in Cash Back?
Right now, the American Express Blue Cash Preferred Card offers the highest amount in cash back: 6% on grocery store purchases and streaming services. You’ll also earn 3% cash back on gas and transit costs, plus 1% cash back on everything else. This Amex card tops The Penny Hoarder list of the best cash back credit cards, but it’s notably the only one with a fee: $95 a year, though the first annual fee is waived.
What Card Gives You 5% Cash Back?
Several cards on our list of the best cash back credit cards offer 5% cash back in specific bonus categories. For example, Discover it Cash Back and Chase Freedom Flex earn 5% cash back in rotating bonus categories (the Chase Freedom Flex also earns 5% cash back for travel booked through Chase Ultimate Rewards); Capital One cards earn 5% cash back on rental cars and hotels booked through Capital One Travel; and the Citi Custom Cash Card pays out 5% cash back in your highest spend category.
Is 2% Cash Back a Lot?
Any amount of cash back from a credit card is a good deal. Typically, 1% is the minimum, which makes 2% even better. If you have a strong credit score, however, you may be able to qualify for a credit card that pays 3% to 6% cash back in select bonus categories. The best cash back credit cards with the highest cash payouts may carry an annual fee, however.
Do Cash Back Cards Actually Give You Cash?
Cash back credit cards vary in how they pay out rewards. Some credit card issuers allow you to redeem rewards as a statement credit while others may deposit money into your account or issue you a paper check. While you’ll rarely see physical dollar bills (unless the credit card issuer lets you redeem rewards at an ATM), the cash rewards are very much actual cash, compared to travel credit cards, which often pay out points or miles.
Contributor Timothy Moore is a writer and editor in Cincinnati who covers banks, loans, insurance, travel and automotive topics for The Penny Hoarder.
This was originally published on The Penny Hoarder , which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
