When it comes to credit cards, finding the right one can feel overwhelming, especially with so many options available. Cash back credit cards have gained popularity because they provide a straightforward way to earn rewards on everyday spending. I’ve spent time reviewing and analyzing the top contenders in this category, and I want to share with you five of the best cash back credit cards available today. In this article, I’ll walk you through the features of each card, provide comparisons, and give examples of how they can benefit you.
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What Is a Cash Back Credit Card?
A cash back credit card allows you to earn a percentage of your spending back as cash rewards. These cards generally fall into two categories: flat-rate cards and tiered cards. Flat-rate cards offer a fixed cash back rate on every purchase, while tiered cards provide higher rewards in certain categories like groceries or gas. Cash back rewards can usually be redeemed as statement credits, direct deposits into your bank account, or sometimes as gift cards or merchandise.
Let’s dive into the five best cash back cards, comparing their features, benefits, and how you can maximize your rewards.
1. Chase Freedom Unlimited®
Chase Freedom Unlimited® is one of my top picks because of its straightforward structure and generous cash back rewards. The card offers a flat 1.5% cash back on all purchases. But what sets it apart is the 5% cash back on travel purchases made through the Chase Ultimate Rewards® portal and 3% cash back on dining and drugstore purchases.
Key Features:
- 1.5% cash back on every purchase
- 5% cash back on travel through Chase Ultimate Rewards®
- 3% cash back on dining and drugstore purchases
- No annual fee
- Sign-up bonus: Earn $200 after spending $500 on purchases in the first 3 months from account opening.
How to Maximize the Rewards:
The 5% cash back on travel through the Chase Ultimate Rewards® portal is a real perk. If you travel frequently, this could add up quickly. Additionally, dining and drugstore purchases earn 3%, so it’s beneficial to use the card for your grocery and restaurant bills.
Example Calculation: Let’s say you spend $300 per month on dining and groceries, $100 on travel, and $200 on general purchases. Here’s how your rewards could look over the course of a month:
- Dining and groceries: $300 × 3% = $9
- Travel: $100 × 5% = $5
- General purchases: $200 × 1.5% = $3
Your total cash back for the month would be $17. That’s $204 in cash back per year, just by using your card for everyday spending.
2. Citi® Double Cash Card
Citi® Double Cash Card is a no-frills, high-reward option. It offers an industry-leading 2% cash back on every purchase—1% when you make the purchase and another 1% when you pay it off. This makes it an excellent option for people who want to earn rewards without worrying about rotating categories or bonus offers.
Key Features:
- 2% cash back on every purchase (1% when you buy, 1% when you pay)
- No annual fee
- No rotating categories or caps on cash back
How to Maximize the Rewards:
With the Citi® Double Cash Card, your focus should be on paying off your purchases as quickly as possible to maximize the second 1% cash back. It’s ideal for those who don’t want to juggle multiple categories and just want a simple, consistent rewards system.
Example Calculation: If you spend $500 each month on purchases and pay your balance in full, you’ll earn 2% on that $500.
- $500 × 2% = $10 in cash back per month
- $120 per year in cash back
This card is perfect for people who want straightforward rewards without thinking about where they’re spending.
3. Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express is an excellent choice for those who spend a significant amount on groceries. This card offers 6% cash back on purchases at U.S. supermarkets (up to $6,000 per year, then 1%), 6% on select U.S. streaming subscriptions, 3% on transit, and 1% on all other purchases.
Key Features:
- 6% cash back on U.S. supermarket purchases (up to $6,000 annually)
- 6% cash back on select U.S. streaming subscriptions
- 3% cash back on transit (e.g., buses, taxis, subways)
- $95 annual fee (waived for the first year)
- Sign-up bonus: Earn $250 after spending $1,000 on purchases in the first 3 months from account opening.
How to Maximize the Rewards:
The 6% cash back on groceries and streaming services is hard to beat, especially if you spend a lot in these categories. If you use this card for your grocery bills and streaming services, you’ll quickly accumulate substantial cash back.
Example Calculation: If you spend $400 a month on groceries, $50 on streaming subscriptions, and $100 on transit:
- Groceries: $400 × 6% = $24
- Streaming: $50 × 6% = $3
- Transit: $100 × 3% = $3
Total cash back for the month = $30, or $360 per year. Subtract the $95 annual fee, and you’re still up by $265.
4. Discover it® Cash Back
The Discover it® Cash Back card is another excellent option if you like earning cash back on rotating categories. You’ll earn 5% cash back on different categories each quarter, such as groceries, gas, or restaurants, up to a quarterly maximum of $1,500 in purchases (then 1%), and 1% on all other purchases. Discover also matches all the cash back you earn in your first year.
Key Features:
- 5% cash back on rotating categories (up to $1,500 per quarter)
- 1% cash back on all other purchases
- No annual fee
- Sign-up bonus: Discover will match all cash back you’ve earned at the end of your first year.
How to Maximize the Rewards:
The rotating categories are great if you’re able to plan ahead and maximize spending in the bonus categories. Be sure to activate the 5% cash back categories each quarter so you don’t miss out on extra rewards.
Example Calculation: Let’s assume this quarter’s bonus category is groceries, and you spend $1,000 on groceries:
- 5% on groceries: $1,000 × 5% = $50 in cash back
- Other purchases (assuming you spend $200): $200 × 1% = $2
Total cash back for the quarter = $52. That’s $208 in cash back for the quarter, or $832 per year.
With the added bonus of matching all the cash back you’ve earned in your first year, you can double that total, bringing your yearly rewards to over $1,600 in the first year.
5. Capital One® Quicksilver® Cash Rewards Credit Card
The Capital One® Quicksilver® Cash Rewards Credit Card is a fantastic option for those who want a simple, no-annual-fee card with a solid flat-rate cash back offer. It offers 1.5% cash back on every purchase. Plus, new cardholders can earn a one-time $200 cash bonus after spending $500 in the first 3 months.
Key Features:
- 1.5% cash back on every purchase
- No annual fee
- One-time $200 bonus after spending $500 in the first 3 months
- No foreign transaction fees
How to Maximize the Rewards:
With its flat-rate cash back structure, this card is perfect for those who want to earn rewards without thinking about rotating categories or bonus offers. The one-time bonus is also a nice perk for new cardholders.
Example Calculation: If you spend $500 per month on this card:
- $500 × 1.5% = $7.50 in cash back per month
- $90 per year in cash back
That’s a solid return, especially when you factor in the one-time $200 bonus after your first $500 in spending.
Conclusion
Choosing the right cash back credit card depends on your spending habits. If you prefer simplicity, the Citi® Double Cash Card and Capital One® Quicksilver® are excellent options with no annual fees and straightforward cash back. However, if you spend heavily on groceries or travel, the Chase Freedom Unlimited® and Blue Cash Preferred® Card from American Express offer higher rewards in those categories. For those who enjoy maximizing rotating categories, the Discover it® Cash Back card is a strong contender, especially with the added bonus of cash back matching in the first year.
To maximize your rewards, consider how you spend each month and match your spending habits with the best cash back opportunities. By doing so, you can easily start earning significant rewards, whether you’re using your card for daily purchases, travel, or groceries.
