14 Best Cash Back Credit Cards of 2023

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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 2022, our balance has grown to $38,232.08.

Without sacrificing our lifestyle in any way, we've been able to save more than $38,000 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.

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 cash back 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.
• Tiered cash back 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.
• Rotating category 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.

As we look at the top cash back cards, we'll point out if a card charges an annual fee, offers a signup bonus, or limits its cash back rewards in any way.

Best Cash Back Credit Cards

Chase Freedom Unlimited®

The Chase Freedom Unlimited® is a cash back card offering 1.5% to 6.5% cash back. Of all the cards on the market offering 1.5% cash back, it's by far the best. It has no annual fee.

This card could serve as your everyday card. While its flat rate is 1.5%, not 2%, its increased rewards can often make up the difference and then some. On top of that, it offers a signup bonus that increases the reward rate on all categories in the first year.

Rewards:

• Annual Fee: $0
• Welcome Bonus: Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back. That's 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
• 0% Intro APR: Get 0% APR on purchases and balance transfers for the first 15 months, then a variable APR of 20.49% - 29.24%.
• Foreign Transaction Fee: 3% of each transaction in U.S. dollars

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Blue Cash Preferred® Card from American Express

The Blue Cash Preferred® Card from American Express is best known for its 6% cash back at the grocery store (subject to spending caps). What many don't know, however, is that it also offers 6% cash back on select streaming services. For those who have lost count of just how many streaming services they have, this card's rewards could add up.

We view the card as best for families or others who can take full advantage of the 6% cash back categories. Here's a breakdown (Terms Apply):

Rewards:

• Annual Fee: $0 intro annual fee for the first year, then $95.
• Welcome Bonus: Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
• 0% Intro APR: Get 0% on purchases and balance transfers for 12 months, then a variable APR of 19.24% - 29.99%.
• Foreign Transaction Fee: 2.7% of each transaction after conversion to US dollars.

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U.S. Bank Cash+® Visa Signature® Card

The U.S. Bank Cash+® Visa Signature® Card stands out as one of the best cash back credit cards for travel. It pays 5% cash back on eligible airfare, hotels, and car rentals booked through the Rewards Travel Center. It also pays 5% cash back on your first $2,000 in combined eligible purchases each quarter on two categories you choose, and 2% back on one everyday category of your choosing.

• Annual Fee: $0
• Welcome Bonus: $200 bonus after spending $1,000 in eligible purchases within the first 120 days of account opening.
• 0% Intro APR: Get 0% APR for the first 15 billing cycles on purchases and balance transfers, then 19.74% - 29.74% variable.
• Foreign Transaction Fee: 3% of each foreign purchase transaction or foreign ATM advance transaction in U.S. Dollars 3% of each foreign purchase transaction or foreign ATM advance transaction in a Foreign Currency

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Capital One SavorOne Cash Rewards Credit Card

The Capital One SavorOne Cash Rewards Credit Card is the no-annual-fee version of the Savor card. You save on the annual fee, but the rewards aren't as rich. Still, for a no-fee card, earning up to 3% cash back on popular everyday categories is a solid offer.

Rewards:

• Annual Fee: $0
• Welcome Bonus: $200 Cash Back after you spend $500 on purchases within 3 months from account opening
• 0% Intro APR: Get 0% APR on purchases and balance transfers for the first 15 months, then a variable APR of 19.99% - 29.99%. There is a balance transfer fee of 3% for the first 15 months or at a promotional APR that Capital One may offer you at any other time. No fee for amounts transferred at the Transfer APR.
• Foreign Transaction Fee: None

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Chase Freedom Flex(SM)

The Chase Freedom Flex(SM) offers a long list of benefits. It offers a signup bonus and up to 5% cash back. And it manages all of this without charging an annual fee. You also get some nice travel benefits.

The 5% cash back includes rotating categories that change each quarter. This is the only rotating card we recommend. Why? Because it pays out elevated rewards in more than just rotating categories.

Rewards:

• Annual Fee: $0
• Welcome Bonus: Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening.
• 0% Intro APR: 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49%–29.24%.
• Foreign Transaction Fee: 3% of the amount of each transaction in U.S. dollars

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Blue Cash Everyday® Card from American Express

With the Blue Cash Everyday® Card from American Express you’ll get 1% cash back on your everyday spending and up to 3% in bonus categories such as gas, groceries, and online shopping. All this for a $0 annual fee.

Rewards:

• Annual Fee: $0
• Welcome Bonus: Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
• 0% Intro APR: 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.24% - 29.99%.
• Foreign Transaction Fee: 2.7% of each transaction after conversion to US dollars.

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Wells Fargo Active Cash® Card

The Wells Fargo Active Cash® Card allows you to earn 2% cash back on all your purchases. There's also a welcome bonus, a 0% intro APR offer, and a $0 annual fee.

Rewards:

• Annual Fee: $0
• Welcome Bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
• 0% Intro APR: 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.24%, 25.24% or 29.99%.
• Foreign Transaction Fee: 3% of each transaction converted to U.S. dollars.

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Citi^® Double Cash Card - 18 month BT offer

Regular readers know this is one of my favorite credit cards. My wife and I have used the Citi^® Double Cash Card - 18 month BT offer for years and earned thousands of dollars in cash back. The Citi^® Double Cash Card - 18 month BT offer is about as simple on rewards as a credit card can be.

Rewards:

• Annual Fee: $0
• Welcome Bonus: Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
• 0% Intro APR: Get 0% APY on balance transfers for the first 18 months, then a variable APR of 19.24% - 29.24%.
• Foreign Transaction Fee: 3%

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Bread Cashback™ American Express® Credit Card

The Bread Cashback™ American Express® Credit Card offers unlimited 2% cash back on purchases you make with the card.¹ There's no annual fee and no foreign transaction fees.²

The card comes with American Express premium benefits including 24-hour emergency assistance, ID theft protection, and early access to buy tickets to concerts and other events.³ However, the card does not offer a welcome bonus. Learn More.

Rewards:

Purchase APR: 20.74, 31.24%, or 35.24% variable APR

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Capital One Quicksilver Cash Rewards Credit Card

The Capital One Quicksilver Cash Rewards Credit Card is a good option for those who want to use just a single credit card. It pays 1.5% cash back on all purchases. Add a signup bonus and no annual fee, and the card easily makes our list of the top cashback credit cards.

Rewards:

• Annual Fee: $0
• Welcome Bonus: One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
• 0% Intro APR: Get 0% APR on purchases and balance transfers for the first 15 months, then a variable APR of 19.99% - 29.99%.
• Foreign Transaction Fee: None

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Capital One QuicksilverOne Cash Rewards Credit Card

The Capital One QuicksilverOne Cash Rewards Credit Card is a good option for those who have less than stellar credit. You get the same 1.5% cash back on all purchases, but you do pay an annual fee. The good news is that payments are reported to all three credit bureaus, enabling you to improve your credit score with on-time payments.

Rewards:  

• Annual Fee: $39
• Welcome Bonus: N/A
• 0% Intro APR: None
• Regular APR: 30.74%
• Foreign Transaction Fee: None

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Petal® 2 "Cash Back, No Fees" Visa® Credit Card

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is a good option for those who have no credit history. You can earn up to 1.5% cash back on all purchases and up to 10% cash back at select merchants. The card charges no fees and provides tools to help you improve your credit score. It reports to all three credit bureaus.

Rewards:  

• Annual Fee: $0
• Welcome Bonus: N/A
• 0% Intro APR: None
• Regular APR: 18.24% - 32.24%
• Foreign Transaction Fee: $0

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Citi Custom Cash® Card

The Citi Custom Cash® Card is a new offer from Citi. It aims to compete against other 5% cash back cards with quarterly rotating categories. Those cards are popular due to the cash back rate, but many don't like that you have to sign up each quarter to get the 5%. On top of that, the higher rewards rate is limited to one or two categories per quarter.

Citi solved both of those limitations. First, there is no quarterly signup requirement. Second, you can earn 5% on up to $500 per month from one of several purchase categories that don't change. Citi simply applies the 5% rate to the eligible category in which you've spent the most. It seems like such an obvious solution that I'm surprised another credit card issuer didn't think of it sooner.

Rewards:  

• Annual Fee: $0
• Welcome Bonus: Earn $200 in cash back after you spend $1500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® points, which can be redeemed for $200 cash back.
• 0% Intro APR: Get 0% APR on purchases and balance transfers for 15 months, then a variable APR of 19.24% - 29.24%.
• Foreign Transaction Fee: 3% of each purchase transaction in US dollars

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PNC Cash Rewards® Visa® Credit Card 

PNC Cash Rewards® Visa® Credit Card could be a good fit for you if you don't put a lot of expenses on a credit card and don't want to pay an annual fee. You'll earn between 2% and 4% on everyday purchases like gas, restaurants, and grocery stores, but there's a cap of $8,000 combined. After that, you'll earn just 1% cash back. You also get cell phone protection, up to $800, when you pay your wireless bill with your card.

Rewards:  

• Annual Fee: $0
• Welcome Bonus: Earn a $200 Bonus after you make $1,000 or more in purchases during the first 3 billing cycles following account opening of a PNC Cash Rewards® Visa® Credit Card.
• 0% APR Offer: Get 0% APR on balance transfers for the first 12, after that, your rate will be 19.24% to 30.24% variable, depending on creditworthiness.
• Foreign Transaction Fee: 3% of each foreign transaction in U.S. dollars.

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See More: Best Credit Cards for Everyday Spending

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