Best Cash Back Credit Cards: Maximize Your Rewards with Top Picks
In the USA, users have their own choices for the specific credit card they need as per their own requirements and needs. Everyone loves cashback type rewards, as nowadays money has become more important to make a living. So the cash back credit cards have already become the most important and popular choice among customers that use credit cards. It is exciting to earn different types of cash back rewards on your everyday purchases. It is called an effortless method or a way to earn perks.Â
These types of credit cards provide you with a specific amount of percentage of your money as a cash back that you’re spending on your purchases on a daily basis. For those who are willing to increase their financial perks it is an attractive option they can come up with. You will explore the nuts and bolts of cash back credit cards in the following article. You’ll learn how these credit cards work, the best options available and tips for increasing your benefits.
What is Cash Back on a Credit Card?
What is cash back on a credit card? Before diving into details you need to understand the basic concept which is important. Cash back type rewards are often offered by many credit card issuers. In a cash back credit card a percentage of the amount spent on buying is received by the card holder.This reward can typically be redeemed as a statement credit, direct deposit, or even as a check.
How Does Cash Back Work on Credit Cards?
By using a cash back credit card a percentage of your spending amount is given back to you as your reward. Percentage of reward depends on the offers that are made by credit cards. For example if the card you are holding is offering 5% cash back then you’ll be getting 5% of your money back as a reward that you’re spending on making purchases.Â
Now the question arises how you can use your cash back from credit card. It also depends on the card type. You should understand and consider the terms and conditions of the card.
Types of Cash Back Credit Cards
Cashback credit cards come in various forms, each catering to different spending habits:
Flat-Rate Cash Back Cards: These cards offer a consistent cash back rate on all leverages. Examples include the Citi Double Cash Back Card, which offers 2% cash back on all purchases (1% when you make a purchase and 1% when you pay off your balance).
Category Bonus Cash Back Cards: These cards offer higher cash back rates on specific categories like groceries, gas, or dining. The best grocery cash back credit card might offer up to 5% cash back on grocery store purchases.Â
Rotating Category Cash Back Cards: These cards offer higher cash back in categories that change quarterly. Cardholders must activate the categories each quarter to earn the higher rate.Â
Best Cash Back Credit Cards
When searching for the best cash back credit cards, it’s essential to consider your spending habits and the card’s rewards structure. Here are some top options:
Citi Double Cash Card
- Cash Back Rate: Earn 2% cash back on all purchases (1% when you buy, 1% when you pay).
- Credit Score Requirement: A good to excellent credit score is typically needed.
- Intro APR: 0% for 18 months on balance transfers, then variable APR applies.
- No Annual Fee: Enjoy all benefits without an annual fee.
- Redemption Flexibility: Redeem cash back as a statement credit, direct deposit, or check.
- Fraud Protection: Includes 24/7 fraud monitoring and $0 liability on unauthorized charges.
- Digital Wallet Compatibility: Works with Apple Pay, Google Pay, and Samsung Pay.
- Contactless Payments: Tap to pay for faster and secure transactions.
- Customer Service: Access 24/7 customer service for any queries or issues.
- Foreign Transaction Fee: 3% on purchases made outside the U.S.
- Cash Back Rate: 5% cash back on rotating categories each quarter (up to the quarterly maximum) and 1% on all other purchases.
- Introductory Offer: Dollar-for-dollar match on all cash back earned in the first year.
- No Annual Fee: Enjoy all rewards with no annual fee.
- Free FICO® Score: Access your FICO® Score for free anytime.
- Fraud Protection: Includes monitoring and alerts for unusual account activity.
- Flexible Redemption: Redeem rewards for cash, gift cards, or at Amazon checkout.
- Intro APR: 0% for 15 months on purchases and balance transfers, then variable APR applies.
- No Foreign Transaction Fee: Shop internationally without extra charges.
- U.S.-Based Customer Service: 24/7 assistance from a dedicated team.
- Card Freeze: Instantly freeze your card if misplaced to prevent new purchases.
- Cash Back Rate: 6% cash back at U.S. supermarkets (up to $6,000 per year), 6% on select U.S. streaming subscriptions, 3% on transit and U.S. gas stations, and 1% on other purchases.
- Annual Fee: $95 (waived for the first year).
- Intro APR: 0% for 12 months on purchases, then variable APR applies.
- Additional Benefits: Access to exclusive Amex Offers for savings on shopping, dining, and more.
- Global Assist® Hotline: 24/7 travel and emergency assistance.
- Car Rental Loss and Damage Insurance: Secondary coverage for car rentals.
- Return Protection: Covers eligible items if the merchant won’t take them back.
- Purchase Protection: Protects against damage or theft for up to 90 days from purchase.
- Extended Warranty: Extends the warranty on eligible items.
- Contactless Payments: Fast and secure tap-to-pay feature.
Chase Freedom Flex™
- Cash Back Rate: 5% on rotating quarterly categories, 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores, and 1% on all other purchases.
- Sign-Up Bonus: $200 bonus after spending $500 in the first three months.
- Intro APR: 0% for 15 months on purchases and balance transfers, then variable APR applies.
- No Annual Fee: Enjoy rewards without any annual cost.
- Chase Ultimate Rewards®: Redeem points for travel, cash back, gift cards, and more.
- Purchase Protection: Covers new purchases against damage or theft for 120 days.
- Extended Warranty Protection: Extends the time period of U.S. manufacturer’s warranty by an additional year.
- Fraud Monitoring: Alerts and monitoring for unauthorized charges.
- Contactless Payment: Tap to pay for secure, convenient checkout.
- Mobile App: Manage your account and track rewards on the go.
- Cash Back Rate: 3% cashback on dining, entertain me
- nt, popular streaming services, and grocery stores, 1% on all other purchases.
- Annual Fee: None.
- Sign-Up Bonus: $200 after spending $500 in the first three months.
- Intro APR: 0% for 15 months on purchases and balance transfers, then variable APR applies.
- No Foreign Transaction Fees: Ideal for international travel.
- Fraud Coverage: $0 liability for unauthorized charges.CreditWise®: Free access to your credit score and monitoring.
- Capital One Shopping: Automatically applies coupon codes at checkout.
- Earning Flexibility: No rotating categories to track or sign-ups needed.
- Contactless Payment: Fast and secure payments with a simple tap..
Maximizing Cash Back Rewards
To get the most out of your cash back credit cards, follow these tips:
- Match Your Spending Habits: Choose a card that offers higher cash back in categories where you spend the most.
- Pay Off Your Balance: Avoid interest charges by paying off your balance in full each month. This ensures that your cash back rewards aren’t offset by interest payments.
- Utilize Sign-Up Bonuses: Take advantage of introductory offers to earn significant cash back rewards upfront.
Track Category Changes: For rotating category cards, stay informed about which categories are offering higher rewards each quarter.
Specialty Cash Back Credit Cards
- Cash Back Rate: Earn 2% cash back on all purchases when deposited into an eligible Fidelity account.
- Ideal For: Those who want to boost their investments or savings.
- No Annual Fee: Enjoy the benefits without any annual cost.
- Enhanced Security: Includes Visa Signature benefits like fraud protection and travel assistance.
- Flexible Redemption: Cash back can be redeemed into various Fidelity accounts including brokerage, IRA, and 529 accounts.
- Global Acceptance: Accepted worldwide where Visa is accepted.
- Customer Support: 24/7 customer service for any queries or assistance needed.
- Cash Back Rate: 3% on dining, 2% on groceries, 1% on all other purchases.
- Perks: Comprehensive travel insurance including trip cancellation, medical, and car rental insurance.
- Concierge Service: 24/7 concierge service for travel, dining, and event planning.
- Exclusive Visa Infinite Benefits: Access to exclusive events and offers.
- No Foreign Transaction Fees: Ideal for international travelers.
- Purchase Security: Protection for eligible purchases against theft or damage.
Extended Warranty: Doubles the original manufacturer’s warranty up to one additional year.
- Cash Back Rate: 1.5% cash back on all purchases.
- Annual Fee: None.
- Intro APR: 0% on balance transfers for the first 18 billing cycles, then variable APR applies.
- No Caps: No limit on the amount of cash back you can earn.
- Simple Redemption: Redeem your cash back for statement credits or direct deposits.
- Fraud Protection: $0 liability on unauthorized charges.
- Digital Wallet Compatibility: Works with Apple Pay, Google Pay, and Samsung Pay for secure transactions.
- Cash Back Rate: 3% on one of 10 categories you choose, 1% on all other purchases.
- Flexibility: Option to change the 3% category every quarter.
- No Annual Fee: Enjoy all rewards without an annual fee.
- Low APR Options: Choose between a low APR or cash back rewards.
- Intro APR: 0% APR for the first 12 months on purchases and balance transfers, then variable APR applies.
- Category Options: Categories include gas, travel, restaurants, groceries, and more.
Easy Management: Manage your account and rewards through the Huntington mobile app.
Cash Back Credit Cards for Specific Needs
Best Cash Back Credit Cards for Groceries
American Express Blue Cash Preferred® Card: 6% cash back at U.S. supermarkets (up to $6,000 per year).
Capital One SavorOne Cash Rewards Credit Card: 3% cash back on grocery store purchases.
Best Cash Back Gas Credit Cards
Costco Anywhere Visa® Card by Citi: 4% cash back on eligible gas worldwide (up to $7,000 per year).
Blue Cash Preferred® Card from American Express: 3% cash back on U.S. gas stations.
Best Business Cash BackCredit Cards
- Capital One Spark Cash for Business: 2% cash back on every purchase.
American Express Blue Business Cash™ Card: 2% cash back on all eligible purchases on up to $50,000 per year.
Common Questions About Cash Back Credit Cards
Can You Get Cash Back on a Credit Card?
Yes, different types of credit cards offer rewards in the form of cash back.But while withdrawing your cash through atm using your card isn’t included to get rewards. Withdrawing cash often comes with high fees and also interest rates.
How Do You Get Cash Back from a Credit Card?
How to get cash back from a credit card involves using the card for buying purposes and earning a percentage of those purchases back as rewards. Redemption options vary by the type of card or card issuer but typically include statement credits, checks, or direct deposits.
What is a Good Cash Back Credit Card?
A good cash back credit card comes with a high cash back rate on your most frequent spending categories. It has a low or no annual fee, and provides flexible options to redeem your rewards.
What Does Cash Back Mean for Credit Cards?
What does cash back mean for credit cards refers to the rewards cardholders earn on their money spending. This cash back can often be used as a statement credit, direct deposit, or sometimes even gift cards.
Can You Get Cash Back with a Credit Card at a Grocery Store?
While some stores may allow cash back at grocery stores with credit cards, it typically involves processing a cash advance, which incurs fee charges and interest. Instead, put your focus on using a grocery cash back credit card to earn rewards on grocery purchases.
How to Get Cash Back with a Credit Card
To get cash back with a credit card, use your card for eligible purchases, and the cash back will accrue based on the card’s reward structure. Check your card issuer’s website or app for redemption options.
Can I Do Cashback with a Credit Card?
Yes, you can earn cash back on purchases. However, appealing for cash back at a register (similar to using a debit card) is generally considered a cash advance and is inadvisable due to high charges.