Cash Back Credit Cards are ideal for those who want solid rewards without a lot of hassle. Rather than trying to churn miles or points cards, there are several cash rewards cards that offer significant benefits.
There are three types of cash back cards:
- One Reward Rate: The most simple approach is a card that pays the same reward percentage on all purchases. The industry standard is 1%, but for those with good credit, you can nab 1.5% or even 2% on every purchase.
- 5% Rotating Categories: These cards offer 5% cash back on specific categories of purchases that change very three months. There are spending caps eligible for the 5% cash back, typically $1,500 each quarter. All other purchases typically earn 1% cash back.
- Bonus Categories: Finally, some cards offer bonus rewards for certain categories of purchases, such as restaurants, groceries, or gas. The bonus rates can vary based on the categories, with some cards offering multiple bonus categories. Purchases outside of the bonus categories typically pay 1%.
Best Cash Back Credit Card
The best card in my opinion is the Citi Double Cash MasterCard. It’s the card I carry. It offers 1% on all purchases + 1% when you pay for those purchases. There are no rotating categories to worry about, and the total 2% cash back is excellent. Citi Double Cash Review.
|Credit Card||Cash Back Rewards||Sign-Up Bonus||Annual Fee|
|Discover it®||5% cash back on rotating categories; 1% on all other purchases||N/A||$0|
|Citi Double Cash MasterCard||1% on every purchase + 1% as you pay for the purchases||N/A||$0|
|Chase Freedom®||5% cash back on rotating categories; 1% on other purchases||$100*||$0|
|Blue Cash Everyday® Card from American Express||3% cash back at U.S. supermarkets up to $6,000 per year in purchases, 2% U.S. gas stations & select U.S. dept stores, 1% other purchases.||$100*||$0|
|The Amex EveryDaySM Credit Card from American Express||15 months||15 months||$0|
|Capital One® Platinum Prestige Credit Card||15 months||15 months||$0|
|Barclaycard Arrival™ World MasterCard®||12 months||12 months||$0|