Top 10 Companies Offering the Best Cash Back Rewards Cards
Cash back rewards credit cards are a popular choice for consumers looking to earn rewards on their everyday spending. Many companies offer competitive cash back programs with various perks and benefits. In this article, we'll explore ten companies known for offering some of the best cash back rewards cards on the market.
1. American Express
Blue Cash Preferred® Card
The Blue Cash Preferred® Card from American Express offers 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 6% on select U.S. streaming subscriptions, 3% on transit and at U.S. gas stations, and 1% on other purchases. It comes with an annual fee but provides substantial rewards for everyday spending.
2. Bank of America
Bank of America® Customized Cash Rewards Credit Card
This card offers 3% cash back in a category of your choice (e.g., gas, online shopping, dining, travel, drug stores, or home improvement/furnishings), 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), and 1% on all other purchases. Platinum Honors members can increase their cash back rewards by 75%.
3. Chase
Chase Freedom Flex℠
The Chase Freedom Flex℠ card provides 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate, 5% on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases. The rotating categories can include a variety of popular spending areas.
4. Citi
Citi® Double Cash Card
The Citi® Double Cash Card is known for its straightforward rewards structure, offering 2% cash back on all purchases—1% when you buy and 1% when you pay. This no-annual-fee card is a favorite for those who prefer simplicity without rotating categories or spending limits.
5. Discover
Discover it® Cash Back
The Discover it® Cash Back card offers 5% cash back on everyday purchases at different places each quarter, such as Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases. Discover matches all the cash back you’ve earned at the end of your first year automatically.
6. Wells Fargo
Wells Fargo Active Cash℠ Card
The Wells Fargo Active Cash℠ Card provides unlimited 2% cash back on all purchases, with no categories or quarterly activations required. It also includes a welcome bonus and a 0% introductory APR offer for purchases and qualifying balance transfers.
7. Capital One
Capital One® Quicksilver® Cash Rewards Credit Card
This card offers unlimited 1.5% cash back on every purchase, every day. It also includes a one-time cash bonus after you spend a certain amount within the first three months from account opening, making it a straightforward and rewarding option.
8. U.S. Bank
U.S. Bank Cash+® Visa Signature® Card
The U.S. Bank Cash+® Visa Signature® Card allows you to choose and change your 5% and 2% cash back categories every quarter. Earn 5% cash back on your first $2,000 in combined eligible purchases each quarter on the two categories you choose, 2% cash back on your choice of one everyday category (like gas stations, grocery stores, or restaurants), and 1% on all other purchases.
9. Synchrony
PayPal Cashback Mastercard®
The PayPal Cashback Mastercard® offers 2% cash back on all purchases where Mastercard is accepted. Cash back rewards are automatically credited to your PayPal account, making it a convenient option for those who frequently use PayPal.
10. PenFed Credit Union
PenFed Power Cash Rewards Visa Signature® Card
This card offers 2% cash back on all purchases for PenFed Honors Advantage members, and 1.5% cash back on all purchases for other members. It’s a great option for those eligible for membership in this credit union.
Choosing a Card for Your Lifestyle and Needs
Assess Your Spending Habits
When selecting a cash back credit card, start by assessing your spending habits. Do you spend more on groceries, dining, travel, or online shopping? Choose a card that offers higher cash back rates in the categories where you spend the most.
Consider Annual Fees and Benefits
Some cash back cards come with annual fees but offer higher rewards rates or additional perks like travel credits, purchase protections, or extended warranties. Weigh the benefits against the annual fee to determine if it’s worth it for your spending pattern.
Evaluate Redemption Options
Look at how you can redeem your cash back rewards. Some cards offer statement credits, direct deposits, or checks, while others might offer gift cards or travel options. Choose a card that provides redemption options that align with your preferences.
Check for Sign-Up Bonuses
Sign-up bonuses can provide a significant boost to your cash back earnings, especially in the first year. Compare the bonuses offered by different cards and consider how easily you can meet the spending requirements to earn them.
Look for Additional Perks
Beyond cash back, some cards offer perks such as travel insurance, rental car insurance, extended warranties, or access to exclusive events. These benefits can add extra value to your card, depending on your lifestyle and needs.
Other Noteworthy Cash Back Cards
Blue Cash Everyday® Card from American Express
This card offers 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 2% at U.S. gas stations and select U.S. department stores, and 1% on other purchases. It has no annual fee, making it a solid choice for everyday spending.
Alliant Cashback Visa® Signature Card
This card offers an unlimited 2.5% cash back on all purchases for the first year (up to $10,000 per billing cycle) and 2.5% thereafter, making it one of the highest flat-rate cash back cards available. It does come with an annual fee starting in the second year.
Costco Anywhere Visa® Card by Citi
The Costco Anywhere Visa® Card by Citi provides 4% cash back on eligible gas purchases (on up to $7,000 per year, then 1%), 3% on restaurants and eligible travel, 2% on all other purchases from Costco and Costco.com, and 1% on other purchases. This card is ideal for Costco members who want to maximize their rewards on Costco purchases.
FAQs about Cash Back Credit Cards
What is a cash back credit card?
A cash back credit card rewards you with a percentage of your spending as cash back. This cash back can often be redeemed as statement credits, direct deposits, checks, or gift cards.
How do cash back credit cards work?
Cash back credit cards return a percentage of your purchases as cash back rewards. The rate can vary by card and spending category. Some cards offer flat-rate cash back on all purchases, while others offer higher rates in specific categories like groceries, gas, or dining.
Are cash back credit cards worth it?
Yes, cash back credit cards can be worth it if you pay your balance in full each month to avoid interest charges. They can provide substantial savings and rewards on everyday purchases, especially if you choose a card that matches your spending habits.
What are the fees associated with cash back credit cards?
Fees can include annual fees, foreign transaction fees, balance transfer fees, and late payment fees. It's essential to read the card's terms and conditions to understand all potential fees.
How can I maximize my cash back rewards?
To maximize your cash back rewards, use cards that offer higher rewards rates in your top spending categories, take advantage of sign-up bonuses, and pay your balance in full each month to avoid interest charges. Using multiple cards strategically can also help maximize your earnings.
Conclusion
Choosing the right cash back credit card depends on your spending habits and financial goals. The ten companies listed above offer a variety of cards with different cash back structures, benefits, and features. Whether you prefer a card with straightforward rewards, rotating categories, or specific spending bonuses, there’s likely a cash back card that fits your needs. Always consider the terms, conditions, and potential fees to ensure you select the best card for your financial situation.
