15 Best Cash Back Credit Cards of 2024

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Cash back credit cards are an easy way to generate income every month. The key is to find cards with the highest rewards that match your spending habits. To help, here is our updated list of the best cash back credit cards.

In 2018 I began saving and investing the cash back rewards we earned from credit cards. In 2019 alone we earned $4,177.83 in credit card rewards. As of February 2020, our balance has grown to $9,306.53. As of 2024, our balance has grown to $42,741.60.

Without sacrificing our lifestyle in any way, we’ve been able to save more than $42,000 by strategically using credit card rewards. To help you maximize your rewards, in this article, we’ll look at the best cash back credit cards available today.

As we look at the top cash back cards, we’ll point out if a card charges an annual fee, has a welcome offer, or limits its cash back rewards in any way.

Best Cash Back Credit Cards

We divide all rewards credit cards into one of three categories: Daily Driver, Triple Play, and Category King cards. Daily Driver cards should be your first credit card and should pay 1.5% to 2% cash back on your everyday purchases. Triple Play cards should pay 3% cash back on at least three spending categories. Category King cards should pay 5% cash back on one or more categories.

Daily Driver Credit Cards

The daily driver should be your first credit card and should earn at least 1.5% cash back on your everyday purchases. However, we recommend choosing a card that earns at least 2% on all purchases for your daily driver. If you only want to carry one credit card, make it one of these.

Wells Fargo Active Cash® Card

 Citi^® Double Cash Card 

 Robinhood Gold Card 

Bread Cashback™ American Express® Credit Card

 Alliant Cashback Visa® Signature Credit Card

Capital One Quicksilver Cash Rewards Credit Card

Capital One QuicksilverOne Cash Rewards Credit Card

Triple Play Credit Cards

These credit cards pay elevated rewards of at least 3% in three or more categories, and they make an excellent second credit card.

Chase Freedom Unlimited®

Blue Cash Preferred® Card from American Express

Blue Cash Everyday® Card from American Express

Capital One SavorOne Cash Rewards Credit Card

PNC Cash Rewards® Visa® Credit Card 

Category King Credit Cards

We call these Category King credit cards because they target one category at a time and that category rotates every quarter. These cards are excellent third credit cards. Use this card for the rotating category, the triple play card for the select categories, and the daily driver for everything else.

U.S. Bank Cash+® Visa Signature® Card

 Citi Custom Cash® Card

Chase Freedom Flex®

See More: Best Credit Cards for Everyday Spending

What Is a Cash Back Credit Card?

A cash back credit card is a type of rewards credit card that offers cash rewards for making purchases with the card.

With a cash back credit card, a percentage of the purchase amount is credited back to the cardholder’s account as a cash reward. The cash back rewards can typically be redeemed as a statement credit, a deposit to the cardholder’s bank account, or as a check. Cash back credit cards may offer a flat rate of cash back for all purchases, or higher cash back rates for specific categories of spending, such as groceries or gas. Some cash back credit cards also offer sign-up bonuses and other perks, such as no annual fee or zero percent introductory APR periods.

3 Types of Cash Back Credit Cards

As you map out your own cash back strategy, keep in mind that there are three broad types of cash back cards.

• Flat-rate “Daily driver” credit cards: 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. This should be the first type of cash back card you get and serve as your everyday card. If you only want to carry one credit card, this one should be it.
• Tiered cash back or “Triple Play” credit cards: These cards offer different rates of cash back depending on the category of spending. For example, a card may offer 3% cash back on gas and 2% cash back on groceries, but only 1% cash back on all other purchases. 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%. These cards should supplement your everyday card if you want to maximize your rewards. You could use a triple play card on the elevated rewards categories and use the daily driver for everything else. 
• Rotating category or “Category King” cash back credit cards: These cards offer bonus cash back in rotating categories throughout the year, typically every three months. For example, a card may offer 5% cash back on dining and entertainment from January to March and then switch to 5% cash back on groceries from April to June. There are spending caps eligible for the 5% cash back, typically $1,500 each quarter. All other purchases typically earn 1% cash back.

Here at allcards.com, we’re all about maximizing credit card rewards. Our 1-2-3 Cash Back System explains how to maximize your rewards depending on whether you carry one, two, or three credit cards. 

Some folks want the simplicity of using just one card for every purchase. Some are comfortable switching between two credit cards, one for the elevated category and the daily driver for everything else. If you want to add a third credit card, make it a rotating category credit card. 

How Does Cash Back Work on a Credit Card?

Cash back on a credit card works by providing a percentage of the amount spent on the card back to the cardholder as a reward. This percentage can vary depending on the credit card and the spending category. For example, a card may offer 1% cash back on all purchases, but 5% cash back on groceries and gas.

The cash back rewards are usually accumulated over a period of time and can be redeemed in different ways, such as a statement credit, a deposit into the cardholder’s bank account, or a check. Some cash back credit cards may have a minimum threshold for redemption, such as $25 or $50.

To earn cash back rewards, the cardholder needs to make purchases with the cash back credit card. The cash back is then automatically credited to their account based on the percentage earned for each purchase. To maximize cash back earnings, cardholders can use their credit card for everyday purchases, such as groceries, gas, and dining out.

It’s important to note that some cash back credit cards may have restrictions or limitations on earning and redeeming rewards, such as expiration dates or spending caps. It’s important to read the terms and conditions of the credit card before applying to fully understand how the cash back rewards program works.

Pros and Cons of Using Cash Back Credit Cards

Cash back credit cards offer several benefits, but there are also some potential drawbacks to consider. Here are some of the pros and cons of using cash back credit cards:

Pros:

• Rewards: Cash back credit cards provide an opportunity to earn rewards for purchases you are already making, which can be a great way to save money or earn cash.
• Flexibility: Cash back rewards can typically be redeemed in multiple ways, such as statement credits or cash deposits, giving you flexibility in how you use your rewards.
• Sign-up bonuses: Some cash back credit cards offer sign-up bonuses, which can provide a large amount of cash back or rewards for meeting certain spending requirements.
• Promotional offers: Cash back credit cards may offer promotional offers, such as 0% introductory APR periods, which can be beneficial for people who want to make large purchases and pay them off over time.

Cons:

• High interest rates: Cash back credit cards often come with higher interest rates compared to other credit cards, which can offset the value of rewards earned if you carry a balance.
• Spending temptation: Cash back credit cards may tempt people to overspend in order to earn more rewards, which can lead to debt and financial problems.

It’s important to carefully consider these pros and cons when deciding whether or not to use a cash back credit card and to choose a card that aligns with your spending habits and financial goals.

How to Find the Best Cash Back Credit Card for You

When looking for the best cash back credit card for you, there are several factors to consider. Here are some tips to help you find the right card:

• Evaluate your spending habits: Look at your current spending habits and identify the categories where you spend the most money. This can help you choose a card that offers the highest cash back rewards for your biggest expenses.
• Consider the cash back rate: Look for a card that offers a high cash back rate in the categories where you spend the most money. Consider both flat-rate and tiered cash back credit cards to find the best fit.
• Check for sign-up bonuses: Look for cards that offer sign-up bonuses that can help boost your rewards earnings. Make sure you understand the requirements to earn the bonus and whether it’s worth the effort.
• Review redemption options: Make sure the card you choose offers redemption options that align with your preferences. For example, if you prefer to receive cash back, choose a card that offers statement credits or direct deposits.
• Consider annual fees and other costs: Look for cards with no annual fee or with an annual fee that is offset by the cash back rewards you’ll earn. Also, consider other costs such as foreign transaction fees, balance transfer fees, and late payment fees.
• Check for additional perks: Some cash back credit cards offer additional perks, such as travel insurance or purchase protection. Consider these perks when choosing a card.
• Compare multiple cards: Finally, compare multiple cash back credit cards to find the one that offers the best rewards program, fits your spending habits, and meets your financial needs.

By considering these factors, you can find the best cash back credit card for your specific situation and maximize your rewards earnings.

How to Make the Most of Your Cash Back Credit Card

If you have a cash back credit card, there are several strategies you can use to make the most of your rewards:

• Choose the right card: Make sure you have a cash back credit card that matches your spending habits. Look for a card that offers bonus cash back in categories where you spend the most, such as groceries, gas, or dining out.
• Pay your balance in full each month: To avoid paying interest charges, make sure you pay your credit card bill in full each month. This will also help you avoid the temptation to overspend and negate the benefits of your cash back rewards.
• Maximize bonus categories: If your cash back card offers bonus cash back in certain categories, be sure to take advantage of those offers by using your card for those purchases.
• Use your card for everyday expenses: Use your cash back credit card for everyday purchases, such as groceries, gas, and utility bills. This will help you accumulate cash back rewards quickly.
• Redeem your rewards strategically: Consider redeeming your rewards for statement credits or bank deposits, rather than merchandise or gift cards, to maximize their value. Additionally, some cash back credit cards may offer bonuses for redeeming rewards in certain ways, so be sure to check for those opportunities.

Also, as I noted above, we save and invest all of our credit card rewards. Over time, we’ve built a 5-figure portfolio just from credit cards. I’m confident it will soon be 6-figures. Here’s the strategy we follow:

Do Cash Back Cards Actually Give You Cash?

Yes and no. It’s not cash, as in $100 bills – but it is money, versus say, travel rewards or gift cards. With a cash back credit card, you earn a percentage of your purchases back in the form of cash rewards. This can typically be redeemed for a statement credit, a deposit into your bank account, or a physical check mailed to you.

The exact redemption options and procedures will depend on the specific cash back credit card you have, so it’s important to read the card’s terms and conditions to understand how the rewards program works. Additionally, some cash back credit cards may have minimum redemption thresholds or restrictions on when you can redeem your rewards.

Is Cash Back from a Credit Card Taxable?

In most cases, cash back rewards from a credit card are not taxable. The IRS considers credit card rewards to be rebates or discounts on purchases, rather than taxable income. This means that you typically don’t need to report cash back rewards as income on your tax return.

However, there are some exceptions. For example, if you receive cash back rewards in exchange for opening a new credit card account, the issuer may report the value of the reward to the IRS as taxable income. Additionally, if you earn rewards through business purchases, the IRS may consider those rewards to be taxable income for your business.

It’s always a good idea to consult a tax professional if you’re unsure about how to report credit card rewards on your tax return.

Why Do Credit Cards Give Cash Back?

Credit card companies offer cash back rewards as a way to incentivize customers to use their credit cards more frequently and to attract new customers. By offering cash back, credit card companies hope to encourage customers to spend more money on their credit cards, which in turn generates more revenue for the credit card issuer through transaction fees and interest charges.

Additionally, cash back rewards can be a way for credit card companies to differentiate themselves from competitors and build customer loyalty. Customers who feel like they’re getting something in return for using their credit card may be more likely to continue using that card and recommend it to others.

Overall, offering cash back rewards can be a win-win for credit card companies and customers. Customers can earn rewards for their purchases, while credit card companies can increase their revenue and customer loyalty.

List of Cash Back Credit Cards

We track dozens of cash back cards. Below you’ll find a list of those cards, ordered by signup bonus, if any. You can click the card name to get more details about each offer. Remember that signup bonuses have spending requirements you must meet to qualify. Sometimes, the signup bonus is in the form of increased cash back rates the first year, subject to spending caps.

Frequently Asked Questions