Cash-back credit cards are
popular because they provide tangible, easy-to-understand benefits. Who doesn’t
like getting a credit on their monthly credit card statement – or, better yet,
actual cash deposited into the account of their choice? Cash-back credit cards
can be even more popular than our top-rated gas credit cards and travel
rewards cards.
But not all cash-back credit
cards are created equally.
Some offer the same cash-back
rate on all purchases. Others offer higher cash-back rates on certain spending
categories, such as groceries or gas, and lower rates on everything else. Still
others offer bonus cash back on spending categories that rotate every quarter.
A few accrue cash back on purchases and monthly payments.
And some cash back cards even hew
to hybrid models, with cash back on certain spending categories and different
types of rewards (such as airline miles) on others.
Best Cash-Back Credit Cards
You’ll find each type of card on
this list of the best cash-back cards available to U.S. consumers today.
Keep in mind that most cash-back
credit cards require applicants to have good to excellent credit — usually
indicated by a FICO credit score above 700, and sometimes even
higher. If you don’t meet that threshold, work on building your credit before
applying.
1. Chase Freedom Unlimited®
Earn an Additional 1.5% Cash Back
on Everything You Buy in the First Year (On Up to $20,000 in Eligible
Purchases)
Chase Freedom Unlimited
earns unlimited 1.5% on most purchases, with some exceptions:
·
During the first year your
account is open, all eligible purchases earn an additional 1.5% cash back, on
up to $20,000 in eligible purchases
·
Through April 2022,
qualifying Lyft purchases earn 5% cash-back
·
After the first year or
your first $20,000 spent, travel purchases made through the Chase Ultimate
Rewards travel portal earn 5% cash-back
·
After the first year or
your first $20,000 spent, drugstore and dining purchases (including takeout and
eligible delivery services) earn 3% cash-back
You can redeem for virtually
anything, in any amount, at the Chase Ultimate Rewards® portal – including cash
equivalents, merchandise, and travel.
Chase Freedom Unlimited has
a great (and sometimes overlooked) perk for loyal Chase credit card
customers. If you also have the Chase Ink Business Preferred ($95
annual fee) business card, the Chase Sapphire Preferred ($95 annual
fee) travel rewards card, or the Chase Sapphire Reserve ($550 annual
fee) premium travel rewards card, you can transfer points earned through
Freedom Unlimited to those accounts.
You can then transfer those
points at a 1-to-1 ratio to a number of different frequent traveler programs,
or redeem them for travel purchases through the Ultimate Rewards portal and
receive a 25% to 50% bonus (for instance, boosting the value of a 50,000-point
redemption to $625 or $750), depending on the card.
However, keep in mind that you
need to obtain either Ink Preferred or Sapphire Preferred/Reserve. Having Chase
Freedom Unlimited doesn’t necessarily qualify you for those cards.
·
Sign-Up Bonus: During the
first year your account is open, earn an additional 1.5% cash back on all
eligible purchases (up to the first $20,000) spent. That’s 6.5% cash back on
travel purchased through Chase Ultimate Rewards, travel, gift cards and more;
4.5% cash back on drugstore purchases and dining at restaurants, including takeout
and eligible delivery service; and 3% on all other purchases (on up to $20,000
spent in the first year).
·
Cash-Back Rate: After your
first year or $20,000 spent, earn unlimited 1.5% cash back on most purchases.
Travel purchases made through Chase Ultimate Rewards travel earn 5% cash-back,
drugstore and dining purchases (including takeout and eligible delivery)
purchases earn 3% cash-back, and through April 2022, Lyft purchases earn 5%
cash-back.
·
Redemption: You can redeem
your accumulated cash-back rewards in any amount. Redemption methods include
statement credits, bank account deposits, gift cards, general merchandise purchases
made through Chase’s Ultimate Rewards portal and direct with third-party
retailers such as Amazon, and travel purchases made through Chase’s Ultimate
Rewards portal.
·
Introductory APR: 0%
introductory purchase and balance transfer APR for 15 months after account
opening. Thereafter, variable regular APR applies.
·
Regular APR: Once the
introductory promotion ends, variable regular APR applies, currently 14.99% to
23.74% APR.
·
Key Fees: There’s no
annual fee. Cash advances cost the greater of $10 or 5%, and foreign
transactions cost 3% of the total transaction amount.
· Other Perks: Additional benefits include purchase protection (up to $500 per item for 120 days after purchase), a free credit score (updated weekly) with Chase Credit Journey, and a free DoorDash DashPass subscription for three months from account opening (then 50% off for the next nine months). Activation is required to earn the DoorDash benefit
2. Blue Cash Preferred® Card from American Express
6% Cash Back at U.S. Supermarkets
and Select Digital Media Services; 3% at U.S. Gas Stations and Transit
Operators (Including Rideshare); 1% Everywhere Else
If you love the supermarket,
you’ll love the Blue Cash Preferred Card from American Express. You get 6% cash
back on all U.S. supermarket transactions, up to a $6,000 annual spending
limit. Once you hit $6,000, you get 1% back on U.S. supermarket purchases.
You’ll also earn 6% cash back on
eligible purchases with digital media and streaming providers such as Netflix
and HBO.
There’s no spending limit on the
U.S. gas station and transit operator categories. You’ll earn 3% cash back on
every $1 spent in those places. American Express treats rideshare operators
such as Lyft and Uber as transit operators, which is great news for those who
frequently use those services. And you’ll earn 1% cash back on all other
purchases, with no limits. Cash back accrues as Reward Dollars that can be
redeemed for statement credits.
One small drawback of the Blue
Cash Preferred card is American Express’s restrictive definition of
“supermarket.” Superstores like Walmart, wholesale clubs like Costco, and
alcohol retailers aren’t considered as supermarkets for this card’s purposes.
And the $95 annual fee (see rates and fees page) does cut into your earning
potential somewhat after the first year, when the annual fee is $0. But since
the 6% supermarket cash back doubles what most competing cards offer, you’re
still likely to come out ahead if you take full advantage of this category.
If you’re struggling to meet your
$6,000 annual U.S. supermarket spending limit with food and dry goods purchases
alone, make up the difference by purchasing other merchants’ gift cards at the
supermarket checkout counter. It’s like getting an immediate 6% discount at
your favorite restaurants, retailers, and e-commerce websites.
Welcome Offer: Earn $300 back
after you spend at least $3,000 on purchases within the first 6 months. Cash
back accrues as Reward Dollars that can be redeemed for statement credits.
Cash-Back Rate: Earn 6% cash back
on select digital media and streaming services like Netflix and HBO. Earn 6%
cash back at U.S. supermarkets, up to $6,000 in spending per year. After that,
you receive 1% cash back at supermarkets. This card offers 3% cash back at U.S.
gas stations and transit operators, including rideshare companies like Uber and
Lyft. Finally, earn 1% cash back on everything else.
Redemption: You can redeem Reward
Dollars for statement credits.
Introductory APR: 0% APR on
purchases for 12 months. Following the end of the introductory period, the
regular APR is variable (currently 13.99% to 23.99%), depending on prevailing
rates and your personal creditworthiness. See rates and fees page.
Key Fees: The annual fee is $0
for the first year, then $95 each year thereafter. The foreign transaction fee
is 2.7%. See rates and fees page.
3. Capital One Quicksilver Cash Rewards Credit Card
1.5% Cash Back on All Eligible
Purchases; Early Spend Bonus Worth $200
The Capital One Quicksilver Cash
Rewards Credit Card couldn’t be simpler. All eligible purchases made with this
card earn 1.5% cash back, with no restrictions on how much you can earn, and
you can redeem in any amount for a statement credit or paper check. An
unusually long 0% APR introductory promotion for purchases and a solid early
spend bonus seal the deal for prospective cardholders.
Early Spend Bonus: Earn a
one-time $200 cash bonus after you spend $500 on eligible purchases in the
first 3 months.
Cash-Back Rate: Earn unlimited
1.5% cash back on all eligible purchases, with no caps or restrictions on how
much you can earn.
Redemption: Redeem your
accumulated cash-back rewards in any amount for a statement credit against
prior purchases or a paper check mailed to your address on file.
Introductory APR: 0% introductory
purchase and balance transfer APR for 15 months after account opening, after
which variable regular APR applies (currently 14.99% to 24.99% variable).
Key Fees: There’s no annual fee
or foreign transaction fee.
Other Perks: Enjoy a host of
purchase and travel protections at no additional out of pocket cost.
4. Citi® Double Cash Card
1% Cash Back When You Spend + 1%
Cash Back When You Pay Your Balance; 0% APR on Balance Transfers for 18 Months
Citi Double Cash’s two-tiered
cash-back program rewards cardholders who pay their balances in full each
month.
As long as you’re a cardholder in
good standing, you’re guaranteed to earn 1% cash back on all eligible purchases
that post to your Double Cash account. But you’ll only achieve the card’s
effective 2% cash-back rate when you pay off your balance in full – as you
should, under normal circumstances.
Two percent cash back isn’t the
only Double Cash benefit worth touting. The card’s 18-month 0% APR balance
transfer promotion is among the best in the category, and the value-added perks
are unusually generous for a no-annual-fee card.
Sign-Up Bonus: There’s presently
no sign-up bonus on the Citi Double Cash Card. Check back for updates.
Cash-Back Rate: Earn unlimited 1%
cash back on all purchases when they post to your account, then another 1% cash
back on all balance payments, for a total effective cash-back rate of 2% when
you pay your balance in full. You must make at least the minimum payment to
qualify for the 1% cash-back rate on balance payments during that statement
cycle. Cash back expires after 12 months of account dormancy (no purchases or
redemptions).
Redemption: The minimum
redemption is $25.
Introductory APR: 0% APR on
balance transfers for 18 months. Then regular APR applies (currently 13.99% to
23.99% variable, depending on creditworthiness and prevailing rates).
Key Fees: There’s no annual fee. The foreign transaction fee is 3%. Balance transfers cost the greater of $5 or 3% of the transferred amount.
