15 best cash-back credit cards of November 2024
If you’re looking to earn money every time you make a purchase, check out our top picks for the best cash-back credit cards. For many, cash is king, and with the right cash-back credit card, you can earn rewards every time you spend. Each card on this list has been chosen for its solid earning rates — from simple 2% flat-rate cash-back cards to those with optimized cash back within specialized spending categories.
These cards can help you maximize your everyday purchases and earn rewards that are easy to redeem.
Check out our curated selection and comprehensive guide on some of the best cash back cards on the market from our partners below.
- Blue Cash Preferred® Card from American Express: Best for gas and supermarkets
- Chase Freedom Unlimited®: Best for flexible cash rewards
- Capital One Spark Cash: Best for flat-rate business cash back rewards
- Capital One Spark Cash Plus: Best for unlimited business cash back
- Citi Double Cash® Card: Best for balance transfers
- Wells Fargo Active Cash® Card: Best for simple cash-back
- Capital One Quicksilver Cash Rewards Credit Card: Best for flat-rate cash back
- Prime Visa: Best for Amazon shoppers
- Synchrony Premier World Mastercard®: Best for automatic cash back statement credits
- Ink Business Unlimited® Credit Card: Best for freelancers
- Citi Custom Cash® Card: Best for flexibility
- Blue Cash Everyday® Card from American Express: Best for beginner cash back
- Capital One Savor Cash Rewards Credit Card: Best for entertainment cash back
- Ink Business Cash® Credit Card: Best for small businesses
- Discover it Cash Back: Best for cash back in rotating categories
Best for gas and supermarkets
| 6% | 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%) |
| 6% | 6% Cash Back on select U.S. streaming subscriptions |
| 3% | 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more |
| 3% | 3% Cash Back at U.S. gas stations |
| 1% | 1% Cash Back on other purchases |
The Blue Cash Preferred Card is one of the best cash-back credit cards on the market. You’ll get a great return across a wide range of bonus categories, a solid welcome bonus and a low annual fee. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout. Read our full review of the Blue Cash Preferred Card from American Express.
Pros
- This card has one of the best earning structures out for among cash-back credit cards.
- The card comes with access to Amex Offers (activation required), which can save you even more money on specific purchases.
Cons
- There is a $6,000 spending cap on the U.S. supermarket bonus category, which may not work for those with large grocery budgets.
- You’ll have to pay a foreign transaction fee on international purchases, so it’s not a great choice when you’re traveling abroad.
- Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
- $0 intro annual fee for the first year, then $95.
- Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
- Low Intro APR: 0% on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 18.49% - 29.49%.
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
- 6% Cash Back on select U.S. streaming subscriptions.
- 3% Cash Back at U.S. gas stations.
- 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
- 1% Cash Back on other purchases.
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
- $84 Disney Bundle Credit: With your enrolled Blue Cash Preferred Card, spend $9.99 or more each month on an auto-renewing Disney Bundle subscription, to receive a monthly statement credit of $7. Valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.
- Terms Apply.
- See Rates & Fees
Best for flexible cash rewards
| 5% | Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more. |
| 3% | 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service. |
| 1.5% | 1.5% cash back on all other purchases. |
The Chase Freedom Unlimited is a surprisingly powerful card that earns cash back on every purchase. However, it doubles in potential value if you pair it with a card that earns transferable Ultimate Rewards points. Read our full review of the Chase Freedom Unlimited.
Pros
- Multiple bonus categories
- Incredible value when paired with a premium Chase card
Cons
- Limited card perks and benefits
- Foreign transaction fees
- Intro Offer: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
- Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
- After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.99% - 28.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Best for flat-rate business cash back rewards
| 5% | 5% cash back on hotels and rental cars booked through Capital One Travel |
| 2% | 2% cash back on every purchase |
The Capital One Spark Cash Credit Card is a solid small business card that offers 2% cash back on all purchases and a generous welcome offer. This card features an annual fee of $95 that is waived in the first year of membership and also provides business owners with additional perks like itemized reports and no foreign transaction fees when purchasing abroad.
Pros
- Generous welcome offer
- No foreign transaction fees
- Unlimited 2% cash back
Cons
- Charges an annual fee after the first year of card membership
- For businesses that want to earn 2% cash back on all purchases with the stability that comes with a traditional credit line
- Earn a one-time $750 cash bonus once you spend $7,500 on purchases within 3 months from account opening
- Earn unlimited 2% cash back for your business on every purchase, everywhere, no limits or category restrictions
- Free employee cards, which also earn unlimited 2% cash back on all purchases
- Rewards won’t expire for the life of the account, and you can redeem your cash back for any amount
- No foreign transaction fees
- $0 annual fee for the first year; $95 after that
Best for unlimited business cash back
| 5% | Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel |
| 2% | Earn unlimited 2% cash back on every purchase, everywhere—with no limits or category restrictions |
The Capital Spark Cash Plus is a great cash back card for larger businesses with high spending. It allows business owners to earn unlimited 2% cash back on every purchase, and Capital One will refund the card’s annual fee if the business meets a minimum spend of $150,000 annually. Read our full review of the Capital One Spark Cash Plus credit card.
Pros
- The card features unlimited 2% cash back on every purchase
- This card offers a large welcome bonus
- Hotels and rental cars booked through Capital One Travel are eligible for 5% cash back
Cons
- The card has a $150 annual fee
- The required spend to waive the annual fee is very high
- The card’s balance must be paid in full every month
- Earn a one-time cash bonus of $2,000 once you spend $30,000 in the first 3 months
- Earn an additional $2,000 cash bonus for every $500K spent during the first year. You can earn this bonus multiple times over the course of year 1!
- Earn unlimited 2% cash back on every purchase, everywhere—with no limits or category restrictions
- Enjoy purchasing power that adapts to your business. The Spark Cash Plus card has no preset spending limit, so it can adapt to your needs based on your spending behavior, payment history, credit profile and other factors
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel
- Empower your teams to make business purchases while you earn rewards from their transactions with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- $150 annual fee - Spend $150,000 annually and Capital One will refund this fee every year
- Spark Cash Plus has no APR because your balance is due in full every month
- For businesses that need large spending capacity and want to maximize cash back
Best for balance transfers
| 1% | Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. |
| 5% | Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25. |
The Citi Double Cash Card caters to beginners establishing good credit habits, since users will earn 2% cash back; 1% when they buy and 1% when they pay their statement. The Citi Double Cash is a great pick for those looking for the utmost simplicity and want cash back in their pocket. Read our full review of the Citi Double Cash here.
Pros
- Earning 2% back on every purchase is an industry-leading return on everyday spending for a no-annual-fee credit card.
- Now that you have the ability to convert rewards to ThankYou points with an eligible card, your redemption options are even more flexible.
- It’s great for those looking to consolidate debt, since it offers new cardmembers a generous introductory APR offer.
Cons
- Those looking to make a balance transfer will have to pay 3% of each transfer (minimum $5) completed within the first four months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
- Earn $200 cash back after you spend $1,500 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.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.49% - 28.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Best for simple cash-back
| 2% | Earn unlimited 2% cash rewards on purchases |
The Wells Fargo Active Cash card delivers simplicity to cardholders who want to pay for their purchases without worrying if you’re maximizing every last dollar. With a 2% cash rewards rate, you’ll rest easy knowing that you’re earning bonus points whether you’re online shopping or paying your hairdresser. Plus, enjoy other benefits like cell phone protection and access to the Visa Signature Concierge luxury hotels. Read our full review of the Wells Fargo Active Cash.
Pros
- There’s no annual fee, meaning that you can keep your costs low while focusing on earning rewards.
- Earn 2% cash rewards on purchases — no bonus categories to track or remember.
- Get up to $600 in cell phone protection (with a $25 deductible) against covered damage or theft when you pay your monthly cell phone bill with this card.
Cons
- Don’t take this card abroad with you, as this card incurs a 3% foreign currency conversion fee.
- Other cash rewards cards can offer better welcome bonuses.
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don't expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Best for flat-rate cash back
| 5% | Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply |
| 1.5% | Earn unlimited 1.5% cash back on every purchase, every day |
The Capital One Quicksilver Cash Rewards Credit Card is a decent option for those in need of a straightforward cash back card. However, there are other options that offer more flexibility to redeem your rewards. Read our full review of the Capital One Quicksilver Cash Rewards Credit Card.
Pros
- Unlimited 1.5% cash back on all purchases.
- No annual fee.
- Cash back doesn't expire.
Cons
- Limited card perks and benefits.
- Other cards offer more potential and upside when it comes to redeeming cash back.
- Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase, every day
- $0 annual fee and no foreign transaction fees
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
- No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 15 months; 19.74% - 29.74% variable APR after that; balance transfer fee applies
Best for Amazon shoppers
| 10% | Prime Card Bonus: Earn 10% back or more on a rotating selection of items and categories on Amazon.com with an eligible Prime membership |
| 5% | Earn unlimited 5% back at Amazon.com, Amazon Fresh, Whole Foods Market, and on Chase Travel purchases with an eligible Prime membership |
| 2% | Earn unlimited 2% back at gas stations, restaurants, and on local transit and commuting (including rideshare) |
| 1% | Earn unlimited 1% back on all other purchases |
The Prime Visa is a solid cash-back card for avid Amazon Prime shoppers. Cardholders with an eligible Prime membership qualify for unlimited 5% cash back when shopping at Amazon.com, Whole Foods, Audible and Chase Travel℠, a boost from the card’s standard 3% cash back (without Prime membership).
Cardholders also earn unlimited 2% cash back at restaurants, gas stations, on transit and 1% cash back on all other purchases. With the Prime Visa, you can redeem daily rewards at Amazon.com as soon as the next day or at Chase.com for cash back, gift cards or travel. You’ll also enjoy a list of travel and purchase protections, no annual fee, no foreign transaction fees, and an Amazon Gift Card instantly upon approval with an eligible Prime membership. If you’re a Prime loyalist, the Prime Visa may be one of the best store credit cards on the market.
Pros
- Unlimited 5% cash back when shopping at Amazon.com, Whole Foods and Chase Travel with eligible Prime membership
- Travel and purchase protections
- No annual fee
- No foreign transaction fees
Cons
- Lower reward rates without eligible Amazon Prime membership
- Financed purchases are not eligible for cash-back
- Get a $200 Amazon Gift Card instantly upon approval exclusively for Prime members
- Earn unlimited 5% back at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel purchases with an eligible Prime membership
- Prime Card Bonus: Earn 10% back or more on a rotating selection of items and categories on Amazon.com with an eligible Prime membership
- Earn unlimited 2% back at gas stations, restaurants, and on local transit and commuting (including rideshare)
- Earn unlimited 1% back on all other purchases
- No annual credit card fee
- No more waiting. Redeem daily rewards at Amazon.com as soon as the next day
- Member FDIC
Best for automatic cash back statement credits
| 2% | 2% cash back* on every purchase |
The Synchrony Premier World Mastercard® is a solid cash back card with no annual fee and unlimited 2% cash back on all purchases. With the Synchrony Premier card, cash back is simplified, with all rewards automatically converted into statement credits with no minimum redemption threshold. The card does not offer a welcome bonus or introductory APR rates but does come with all the standardized perks of a World Mastercard.
Pros
- Cash back takes the form of automatic statement credits
- Flat 2% cash back rate means you earn rewards with every purchase
- Uncapped cash back earning potential
- No annual fee
Cons
- Not ideal for those who want cash back redemption options
- Charges a 3% foreign transaction fee
- 2% cash back* on every purchase--no categories, tiers, or limits--no kidding.
- No annual fee^
- Zero Liability Protection
- Secure online and mobile app account access
- Get more out of every day purchases -- earn 2% cash back with your Synchrony Premier Card. No complicated math or rewards categories to remember.
- Plus, you'll also gain access to additional key benefits like identity theft protection, money-saving discounts, and concierge travel planning support.
- *2% cash back is valid on net purchases (less credits, returns and adjustments) of goods and services made with a Synchrony Premier World Mastercard. Cash back earned will be applied as a statement credit within 2 billing periods after an eligible purchase is made, if the account is open and in good standing. See Rewards Terms for details. We reserve the right to modify features of the Cashback Program at any time.
- ^NO ANNUAL FEE: New Accounts as of October 1, 2024: Variable Purchase APR 18.74%, 27.74%, or 34.49%. Variable Bal Trans APR 18.74%, 27.74%, or 34.49% and 4% Fee ($10 min). Variable Cash APR 21.74%, 30.74% or 37.49% and 5% Fee ($10 min). Variable Penalty APR 28.74%, 37.74% or 39.99%. Minimum Interest Charge is $2. Foreign transaction fee: 3%.
Best for freelancers
| 1.5% | Earn unlimited 1.5% cash back on every purchase made for your business |
The Ink Business Unlimited offers unlimited 1.5% cash back on every business purchase. It fills in rewards gaps not covered by the Ink Business Cash® Credit Card and the Ink Business Preferred® Credit Card. You can maximize this card by pairing it with cards including the Chase Sapphire Reserve®, the Chase Sapphire Preferred® Card and the Ink Business Preferred. Read our full review of the Ink Business Unlimited Credit Card.
Pros
- No annual fee.
- A generous welcome bonus.
Cons
- High spend to receive sign-up bonus.
- No conversion to Chase points without holding the Chase Sapphire Reserve, Chase Sapphire Preferred or Ink Business Preferred
- Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase made for your business
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control.
- Round-the-clock monitoring for unusual credit card purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- 0% introductory APR for 12 months on purchases
- Member FDIC
Best for flexibility
| 5% | Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. |
| 4% | Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2026. |
| 1% | Earn unlimited 1% cash back on all other purchases. |
The Citi Custom Cash is the most flexible cash-back card on the market, allowing you to earn 5% back on your top eligible spend category on up to $500 spent each billing cycle. Read our full review of the Citi Custom Cash.
Pros
- Choice of bonus category.
- No annual fee.
Cons
- Cap on bonus earning.
- Foreign transaction fees.
- Earn $200 cash back after you spend $1,500 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 on balance transfers and purchases for 15 months. After that, the variable APR will be 18.49% - 28.49%, based on your creditworthiness.
- Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2026.
- No rotating bonus categories to sign up for – as your spending changes each billing cycle, your earn adjusts automatically when you spend in any of the eligible categories.
- No Annual Fee
- Citi will only issue one Citi Custom Cash® Card account per person.
Best for beginner cash back
| 3% | 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. |
| 3% | 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. |
| 3% | 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%. |
| 1% | 1% Cash Back on other purchases. |
The Blue Cash Everyday card is a good option for people who want a simple cash-back structure with no annual fee. You'll earn bonus cash-back on popular bonus categories, including U.S. supermarkets and U.S. gas stations. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout. Read our full review of the Blue Cash Everyday card.
Pros
- 3% cash back at U.S. supermarkets
- No annual fee.
- 3% cash back at U.S. gas stations and U.S. online retail purchases.
- Amex Offers, which earn you statement credits or extra points on purchases with a wide variety of merchants. (Enrollment required)
Cons
- There is a $6,000 spending cap on the U.S. supermarket bonus category, which may not work for those with larger annual grocery spend.
- You’ll have to pay a foreign transaction fee on purchases abroad, so it’s not a great choice to take with you when traveling outside of the U.S.
- Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
- No Annual Fee.
- Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 18.49% to 29.49% variable APR.
- 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
- 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
- 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%.
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
- Thinking about getting the Disney Bundle which can include Disney+, Hulu, and ESPN+? Your decision made easy with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Everyday® Card. Enrollment required.
- Enjoy up to $15 back per month when you purchase a Home Chef meal kit subscription (subject to auto renewal) with your enrolled Blue Cash Everyday® Card.
- Terms Apply.
- See Rates & Fees
Best for entertainment cash back
| 8% | 8% Cash Back on Capital One Entertainment purchases |
| 5% | 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) |
| 3% | 3% Cash Back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services |
| 1% | 1% Cash Back on all other purchases |
The Capital One Savor is a great cash-back credit card for beginners looking for a solid cash back structure and no annual fee. Dining, entertainment and groceries are high-value bonus categories, and it’s rare for a card to hit all three. Read our full review of the Capital One Savor Cash Rewards Credit Card.
Pros
- Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases
- This card is great for beginners.
- The intro APR offer that comes with this card makes it a solid choice for those looking to finance a large purchase.
Cons
- If you spend a lot on dining and entertainment each year, there are cards that provide better value with higher rewards potential.
- The sign-up bonus isn’t anything to write home about (though it is easy to earn).
- For a limited time, earn a $250 cash bonus once you spend $500 on purchases within the first 3 months from account opening
- Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
- Earn 8% cash back on Capital One Entertainment purchases
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
- No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 15 months; 19.74% - 29.74% variable APR after that; balance transfer fee applies
- No foreign transaction fee
- No annual fee
Best for small businesses
| 5% | Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year |
| 2% | Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year |
| 1% | Earn 1% cash back on all other card purchases with no limit to the amount you can earn |
The Chase Ink Business Cash is an excellent no annual fee card for small business owners. Cardholders can earn 5% cash back on office supplies and select utilities, as well as 2% cash back at restaurants and gas stations. Read our full review of the Ink Business Cash Credit Card.
Pros
- The current sign-up bonus on this card is an impressive up to $750.
- There is no annual fee which is perfect for small business owners.
- You’ll earn 5% at office supply stores and on common monthly bills such as internet, cable and phone services. Plus, you’ll earn 2% cash back at gas stations and restaurants each account anniversary year.
Cons
- 5% and 2% cash back earned on certain categories is capped at the first $25,000 you make in combined purchases each account anniversary year.
- Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- 0% introductory APR for 12 months on purchases
- Member FDIC
Best for cash back in rotating categories
Discover it Cash Back
| 5% | Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. |
| 1% | Earn 1% unlimited cash back on all other purchases – automatically. |
Pros
- Generous first-year cash-back match offer, as Discover will effectively double all the cash back earned in your first 12 months holding the card
- Earn 5% cash back in rotating bonus categories, on up to $1,500 in purchases quarterly
- Eligible customers may qualify for 0% introductory APR in the first 15 months you hold the card
- No annual fee
- No foreign transaction fees
Cons
- 5% cash back earnings capped at $75 cash back per quarter
- Rotating bonus categories must be activated each quarter to earn 5% cash back
- Limited redemption options
The Discover it® Cash Back is a solid option to net elevated cash-back earnings in rotating categories quarterly. Plus, you can get outsize value after your first year with the card, as Discover will match all of the cash back you’ve earned in the first 12 months of using it.
The information for the Discover it Cash Back Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Comparing the best cash-back credit cards
Credit card | Best for | Intro offer | Earning rate | Annual fee |
|---|---|---|---|---|
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at American Express's secure site | gas and supermarkets | Earn $250 Open Intro bonus Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months. | 1 - 6% cash-back | $0 intro annual fee for the first year, then $95. |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Chase's secure site | flexible cash rewards | Up to $300 cash back Open Intro 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 Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases. | 1.5 - 5% cash-back | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Capital One's secure site | flat-rate business cash back rewards | $750 Cash Back Open Intro bonus Earn $750 cash back once you spend $7,500 in the first 3 months from account opening | 2 - 5% cash-back | $0 intro for first year; $95 after that |
Earn $4,000 or more in cash bonuses Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Capital One's secure site | unlimited business cash back | $2,000+ cash back Open Intro bonus $2,000 cash back once you spend $30,000 in the first 3 months. Earn an additional $2,000 cash bonus for every $500K spent during the first year | 2 - 5% cash-back | $150 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Citi's secure site | balance transfers | $200 cash back Open Intro bonus Earn $200 cash back after you spend $1,500 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. | 1 - 5% cash-back | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Wells Fargo's secure site | simple cash-back | $200 cash rewards Open Intro bonus Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months | 2% cash rewards | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Capital One's secure site | flat-rate cash back | $200 Open Intro bonus Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening | 1.5 - 5% cash-back | $0 |
Limited-Time Offer Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Amazon's secure site | Amazon shoppers | Get a $200 Amazon Gift Card Open Intro bonus Get a $200 Amazon Gift Card instantly upon approval exclusively for Prime members | 1 - 10% cash-back | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Synchrony's secure site | automatic cash back statement credits | N/A | 2% cash-back | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Chase's secure site | freelancers | Earn $750 bonus cash back Open Intro bonus Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening. | 1.5% cash-back | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Citi's secure site | flexibility | $200 Open Intro 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. | 1 - 5% cash-back | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at American Express's secure site | beginner cash back | Earn $200 Open Intro bonus Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. | 1 - 3% cash-back | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Capital One's secure site | entertainment cash back | $250 Cash Back Open Intro bonus $250 Cash Back after you spend $500 on purchases within 3 months from account opening | 1 - 8% cash-back | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Chase's secure site | small businesses | Earn up to $750 bonus cash back Open Intro bonus Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening. | 1 - 5% cash-back | $0 |
Discover it Cash Back * *The information about the Discover it Cash Back has been collected independently by ThePointsGuy.com. The card details have not been reviewed or approved by the card issuer. Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. Information updated as of 11/18/2024 | cash back in rotating categories | Cashback Match Open Intro bonus Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. | 1 - 5% cash-back | $0 |
More details on the best cash-back credit cards
It has bonus categories that match the spending patterns of many busy, modern-day U.S. households. Its rewards are simple to use, as they come in the form of Reward Dollars that can be redeemed as statement credit or at Amazon.com checkout, so you don’t need a lot of experience maximizing rewards to make the most of this solid cash-back card.
Families that spend a fair amount on groceries and streaming services and who want to keep their rewards simple will do great with adding the Amex Blue Cash Preferred Card. For example, if you spend an average of $500 a month on groceries at U.S. supermarkets, you’d earn $360 per year by putting that expense on the Amex Blue Cash Preferred Card, versus just $120 in rewards on a card that earns 2% cash back in that category. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
It should not be used by frequent international travelers while abroad as it does have a 2.7% foreign transaction fee (see rates and fees).
"The Blue Cash Preferred Card is the card I recommended to my parents when they were looking for a new cash-back rewards card for their groceries. My parents prefer the simplicity of cash-back rewards and I knew they'd benefit from earning 6% cash back on up to $6,000 per year in purchases at U.S. supermarkets (then 1% after). Compared to the 1.5% cash back they were earning on these purchases, the elevated earnings easily justified adding the Blue Cash Preferred to their wallet." — Katie Genter, senior writer
If you want to earn bonus cash back on purchases at U.S. supermarkets and gas stations without an annual fee (see rates and fees), you can instead look to The Blue Cash Everyday® Card from American Express, which awards bonus cash back in many of the same categories.
The Chase Freedom Unlimited features a simple earning structure and a flat 1.5% earning rate on all other purchases outside of key categories. This makes it a great go-to for everyday spending, especially to fill in any gaps in your earning strategy.
If you’re relatively new to credit card rewards programs, the Freedom Unlimited is a solid card to get started with since its earning categories are pretty straightforward and there are no rotating categories you have to worry about tracking and activating.
“The Chase Freedom Unlimited is a great option, especially for anyone with a card like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®. It has solid bonus categories but also gives 1.5% back on all other purchases. And, if you have a higher-end Chase card, you can effectively convert these cash-back earnings into fully transferable Ultimate Rewards points.” — Nick Ewen, Director of Content
Those seeking a travel rewards card with no annual fee should consider the Capital One VentureOne Rewards Credit Card. It earns 5 miles per dollar spent on hotels and rental cars booked through Capital One Travel in addition to 1.25 miles per dollar spent on all other purchases. The VentureOne Rewards also has no foreign transaction fees making it an ideal travel companion, especially for starters (see rates and fees).
This card offers uncapped cash back earning potential, which business owners can then pour back into their enterprises.
This is a good option for business owners who prioritize earning cash back rewards over points and miles and who don’t want to deal with the hassle of tracking bonus spend categories.
If you’re looking for a simple business card that earns unlimited cash back and offers some business perks, consider adding the Capital One Spark Cash card to your wallet.
If your small business would be better off with a no annual fee, consider the Ink Business Unlimited® Credit Card. It features a lower cash back reward rate but also comes with a decent welcome bonus.
The Capital One Spark Cash Plus is a business card that offers 2% cash-back rewards on all eligible purchases with no limits. It is a charge card, which means the balance must be paid in full each month — but you won’t rack up interest charges for your purchases.
This card is best suited for business owners with thousands of dollars in chargeable expenses since it does have an annual fee of $150 (see rates and fees). To recoup that cost in rewards, you’ll need to charge at least $7,500 throughout the year on the card.
You can earn unlimited cash back on business expenses, which means you’ll never have to worry about juggling different bonus categories to maximize its value.
If your business wants to earn 2% cash back but doesn’t charge more than $50,000 per year, then The American Express Blue Business Cash™ Card is a great option to consider because it does not have an annual fee (see rates and fees), though the rewards-earning power drops to 1% per year after the $50,000 threshold has been passed.
One of the simplest and most rewarding cash-back cards out there is the Citi Double Cash Card. It awards 1% cash back when you buy and then another 1% as you pay off your bill. You can even convert the cash back to ThankYou points via a linked ThankYou card, such as the Citi Prestige® Card.
The information for the Citi Prestige has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
This card is best for two groups of people: those who want to keep rewards lucrative but simple, earning 1% cash back as you buy things and 1% cash back as you pay them off, and those who want to ramp up rewards-earning by converting these rewards to Citi ThankYou points, which TPG values at 1.8 cents each.
"I wasn’t the biggest fan of this card previously, thinking it was just average, but I am a big fan now that it earns Citi ThankYou points. Paired with my other Citi cards, it unlocks huge earning potential on everyday spending. The fact it has no annual fee means it’s a long-term keeper for me.” — Ryan Smith, credit cards writer
If you want an even simpler rewards-earning structure, also with no annual fee, check out the Wells Fargo Active Cash® Card (see rates and fees), which earns 2% back in cash rewards on purchases.
Sometimes simplicity is key, and keeping things easy is the name of the game for the Wells Fargo Active Cash® Card (see rates and fees), which provides 2% cash rewards on purchases without an annual fee. As a nice value-added bonus, the card also provides up to $600 in cellphone protection against damage or theft (subject to a $25 deductible) if you pay your monthly cellphone bill with your Active Cash card.
The Wells Fargo Active Cash Card is best for those who don’t want to give a second thought to earning rewards and just want to pick up some easy cash back on everyday purchases.
“This card offers a generous 2% in cash rewards. When the time came to pay my daughter’s preschool tuition, I got the card. I figured I could charge the expense on the card and get 2% in cash rewards. It was a no brainer for me!” — Eileen Sullivan, senior UX researcher
If you want the ability to turn your rewards into travel miles or points down the road, consider the Citi Double Cash® Card (see rates and fees), which also has no annual fee and awards 1% back as you charge purchases to the card and another 1% back as you pay off those purchases.
The Quicksilver Cash Rewards card is a no-fuss card with a 1.5% cash-back rate no matter the purchase type. You won’t have to worry about paying foreign transaction fees or an annual fee with this card (see rates and fees), and you’ll get access to many Capital One benefits. This includes access to the Capital One Travel site, which even allows you to get some fare purchase protection on eligible flights if the price drops.
This card is great for those who occasionally travel, all while still keeping their rewards strategy very simple.
“This is my oldest credit card, but I’ve kept it open for more than just its history to aid my credit score. With no annual fee and a fair earning structure, it’s a good option for purchases that don’t fall into bonus categories on my other credit cards. I’m happy knowing I’ll never earn less than 1.5% back on spending.” — Ryan Smith, credit cards writer
While there are some perks to having a Capital One-issued card in your wallet, if what you’re after is a higher earning structure on your purchases, you can check out the Wells Fargo Active Cash® Card (see rates and fees), which awards 2% cash rewards on purchases and still has no annual fee.
The Prime Visa is packed with perks, and when you pair it with an Amazon Prime membership, the generous 5% cash back rate on Amazon purchases is unbeatable.
The Prime Visa is a great option for Amazon Prime members who frequently shop on the site. It is also great for those who shop at grocers like Amazon Fresh and Whole Foods and will benefit from the card’s healthy cash back rates.
The Prime Visa should be in your wallet if you regularly shop at Amazon and can maximize reward earnings with shopping directly with Amazon, Whole Foods, Amazon Fresh and other retailers across other reward categories.
If you’re looking for a card that earns similar cash-back rates but don’t shop at Amazon enough to benefit from the Prime Visa’s exclusive perks, consider the Chase Freedom Unlimited®. This no-annual-fee card still earns 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants — including takeout and eligible delivery services — and 1.5% cash back on all other purchases.
The credit card world can often be confusing, so simplicity is a key feature of the Synchrony Premier World Mastercard. It offers a simplified cash back strategy with unlimited flat-rate earning and automatic statement credit rewards conversion. In addition to its no minimum redemption threshold, the card also comes with no annual fee. With the Synchrony Premier, getting the most out of your spending has never been easier.
The Synchrony Premier World Mastercard is for people who want simple and automatic cash back rewards across all their spending.
This card can be a great addition to your wallet if you’re looking for a simplified cash-back card to fill in the gaps of your credit card reward-earning strategy.
If you are looking for a credit card with a simple earning model, consider the Citi Double Cash® Card (see rates and fees) which also offers unlimited cash back of 2% on all purchases (1% when you buy; 1% when you pay your bill). The flexible earning structure of this card makes it a solid option for maximizing rewards since it could fill gaps in your earnings strategy.
If you’re looking for ease of earning on all your purchases — or a card that earns well on purchases that don’t fall into bonus categories with other credit cards — the Ink Business Unlimited card is a clear winner. Freelancers and independent contractors love the ability to earn 1.5% back on all purchases, pay no annual fee and even combine the points they earn with Chase Ultimate Rewards from other eligible Chase credit cards like the Chase Sapphire Preferred® Card. Plus, there are no earning limits on this card.
There are two types of business owners who will benefit from this card. The first is the person looking for a card with a lucrative earning structure but no annual fee. The second is someone who needs a card for those “other” expenses that fall outside the bonus categories offered by other rewards cards in their wallet. This is an ideal card for everyday business expenses.
“I have the Chase Ink Business trilogy — the Ink Business Cash® Credit Card, Ink Business Preferred® Credit Card and Ink Business Unlimited Credit Card. The first two cards maximize my points-earning on things like office supply, internet and phone purchases, while the Ink Unlimited covers everything else with a flat 1.5% earn rate. The fact that I have the Ink Preferred means I can convert my cash back from the Ink Unlimited into more valuable Chase Ultimate Rewards points. This no-annual-fee card will stay in my wallet for years to come.” — Matt Moffitt, senior credit cards editor
If you’re looking for a card that rewards you based on your banking relationship, the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® credit card earns 1.5% back on all purchases. Those with banking and investment accounts at Bank of America can bump their earning rate up to 2.625% on all purchases thanks to Bank of America Preferred Rewards for Business.
As the name suggests, the Citi Custom Cash card is meant to be customized to fit your lifestyle — without you having to remember to select a bonus category each month. It earns 5% cash back on up to $500 in purchases each billing cycle on your top spending category (then 1%). The 10 eligible categories include things like grocery stores, restaurants, gas stations, gyms and home improvement stores.
This card is best for those who have spending patterns that vary and want a card that can keep up. Maybe one month you splurge on concert tickets and the next you are cooking meals at home and leaning into grocery shopping — this card can adjust automatically to reward you where you are spending the most.
Customizable rewards means you have more control over your rewards strategy and can build a card that is personalized for your specific needs.
If you don’t typically have one standout spending category and want a card that earns more cash back across the board, the Citi Double Cash® Card (see rates and fees) is a great choice, as it awards 1% back as you spend and another 1% back as you pay.
Those newer to credit card rewards will appreciate the Blue Cash Everyday’s no annual fee (see rates and fees) and simple cash-back structure. With popular 3% bonus categories of U.S. supermarkets, U.S. gas stations and U.S. online retail purchases (on up to $6,000 in annual purchases in each category, then 1%), you’ll quickly rack up Reward Dollars that can easily be redeemed as a statement credit or at Amazon.com checkout.
If you want no annual fee and some popular bonus categories, then the Blue Cash Everyday Card may well be the best card for you. Additionally, if you are a fan of the streaming Disney+ service, know that the card comes with a $7 statement credit monthly toward a subscription to the Disney Bundle (subscription must be $12.99 or more; subject to auto-renewal).
"I added this card to my wallet shortly after my first travel card as a way to earn better rewards on gas and groceries. 3% back on both categories was a great way for me to earn higher cash-back on many of my everyday purchases without any added annual fee.” — Jack Markham, senior director
If you don’t want to think about bonus categories, or don’t spend enough in these particular bonus categories, consider the Wells Fargo Active Cash® Card (see rates and fees), which awards 2% cash rewards on purchases with no annual fee.
The Capital One Savor is the card to have for going out, eating out and seeing the latest concert — all with no annual fee. To put numbers to it, this card awards 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other eligible purchases.
This card is for those who like to live life to its fullest by being out and about and who will make use of its unique combination of bonus categories — not to mention the card’s occasional must-have concert presale access so you can swiftly lock up that hot ticket.
It’s easily the best no-annual-fee credit card for dining, entertainment and streaming. Whether you’re going out for the night or staying in, this card ensures your maximizing rewards.
If you want a Capital One card with a higher everyday earning rate (but without the category bonuses), look into the Capital One Quicksilver Cash Rewards Credit Card, which also has no annual fee (see rates and fees) but awards 1.5% cash back on everyday purchases.
The Ink Business Cash is one of the most rewarding business cash-back cards, as it earns 5% back on the first $25,000 spent each account anniversary year at office supply stores and on internet, cable and phone services.
If that’s not enough of a reason to grab the no-annual-fee card, it also usually has a very lucrative welcome bonus and earns 2% on the first $25,000 spent each same account anniversary year at gas stations and restaurants, and 1% on all other eligible purchases.
The Ink Business Cash is great for small-business owners who want to dip their toes into the Chase Ultimate Rewards world, since you can turn those cash-back rewards into fully transferable Ultimate Rewards points if you also have the Chase Sapphire Preferred® Card, Chase Sapphire Reserve® or Ink Business Preferred® Credit Card.
“I love this card for awarding 5% back on my telecommunication services and office supply purchases, all with no annual fee. But my favorite perk is taking those cash-back rewards and combining them with my earnings from the Chase Sapphire Reserve. This means I’m effectively earning 5 fully-transferable Ultimate Rewards points for every dollar I spend in these categories — which I then can transfer to valuable partners like World of Hyatt and Air Canada Aeroplan.” — Nick Ewen, director of content
If you want the benefits of being in the Chase Ultimate Rewards ecosystem and aren't a fan of keeping track of bonus categories, look at the Ink Business Unlimited® Credit Card, which also has no annual fee and awards 1.5% back on all purchases with no limits.
The Discover It is a great no annual fee cash back card that makes putting money back into your pocket simple and straightforward. Each quarter, you activate the 5% cash back offer that spans various everyday purchases, including popular ones like gas, groceries and restaurants.
If you’re looking to earn a healthy cash back rate across various purchases while avoiding an annual fee, the Discover it cash back card could be a great addition to your roster.
“This is one of the oldest cards in my wallet; I keep it to earn a healthy 5% cash back in categories I frequently spend in and then redeem my rewards whenever I make an Amazon purchase.” — Daisy Hernandez, Credit cards editor
Those who don’t want to track quarterly categories will appreciate the Citi Double Cash® Card (see rates and fees). It features a flat 2% cash back rate across every purchase — 1% when you make a charge and 1% when you pay.
How we rate cards
How does your wallet stack up?
According to a TPG newsletter survey, 22% of card users use their rewards to fund other financial goals like vacations or home upgrades. Savvy consumers put their rewards towards future dream vacations or home upgrades instead of letting credit card points and miles sit idle. It is important to have a clear redemption plan to maximize your rewards which begs the question, how are you using your cash back?
Ask our experts
What's your favorite cash-back card — and why?
What TPG readers have to say about their top pick for best cash back cards
We asked TPG readers which cards they liked best for earning cash back. Check out what they said and see which card stood out as a fan favorite.
Note: Reader-submitted responses have not been edited, reviewed or approved by the issuers nor reflect TPG’s opinions of these cards.
Chase Freedom Unlimited®
“Cash/points back on every purchase.”
How to choose the best cash back credit card
- While cash back credit cards don’t typically offer larger sign-up bonuses, they do usually provide the chance to earn a couple hundred dollars. There are exceptions to this which is ideal since you can choose which card from our roster is best for you.1Sign-up bonus
- The good news is that almost all of the cash back cards on this list don’t come with an annual fee. The better news is that of the cards requiring the cardholder to pay an annual fee, most of these options are sub-$200.2Annual fee
- The best cash back card for you will depend heavily on your preferred bonus categories. If you spend a lot on groceries, dining out or streaming services, opt for a card that will provide cash back every time you use it to make a purchase in one or more of your main categories.3Bonus categories
Credit pointers with Brian Kelly
Pros + cons of cash-back credit cards
Pros
- Cash-back credit cards can be a solid first step into earning rewards on every purchase
- Cash-back credit cards can help you save money on every dollar you spend
- Many cash-back credit cards are good options for those starting out with building credit
- Rewards from cash-back credit cards don’t require advanced knowledge to redeem
- Many cash-back credit cards earn at an elevated rate in popular spending categories
- Many cash-back credit cards do not come with an annual fee
Cons
- Carrying a balance on your cash-back credit card can damage your credit score and cancel out your earnings
- Cash-back credit cards incur higher interest rates than traditional loans
- Having too many card applications can negatively affect your credit score
- Using cash-back credit cards may sacrifice the potential for more valuable travel rewards
- Some cash-back credit cards aren’t as easy to maximize as points-earning cards since the redemption options are less flexible
Frequently asked questions
If you can earn 2% cash back on all your purchases made with a no-annual-fee credit card that you otherwise weren’t earning rewards on, then having a cash-back card is certainly worth it … as long as you pay your balance off in full each month to avoid interest charges. Even if you only earn 2% back on $1,000 in monthly charges, that is still $240 in annual rewards you otherwise wouldn’t have had.
Know, though, that whether a cash-back credit card is the absolute best option for you ultimately depends on your spending patterns and the goals you have for your credit card rewards.
Credit card issuers don’t want their cards to just sit in your wallet and collect dust. They want you to use them frequently so they can make money off of interchange fees charged to the retailers and potential interest fees. Having the card provide you a reward for using it in the form of cash back is a way for the card issuer to encourage you to select that card over the others in your wallet when it comes time to make a purchase.
There isn’t one credit card that gives the most cash back in all areas. Some have rotating or fixed bonus categories that provide as much as 6% cash back, while others give around 2% cash back for all spending categories. The one that will result in the most cash back for you depends on your spending patterns and what other cards you already have in your wallet.
Typically, cash-back rewards do not expire as long as your card remains open and in good standing. However, you should check the terms and conditions of your specific cash-back card to know the circumstances under which your cash-back rewards could expire or otherwise be forfeited. Be sure to utilize or cash out the rewards you’ve accrued before closing your account.
While you should always consult an accountant for specific tax advice, rewards earned from purchases on your credit cards usually are not taxable, as they are considered purchase rebates. That said, if you get cash back from something other than a purchase (such as for referring a friend to the card), that may be considered taxable.
Essentially, yes. No one from the bank is likely to walk up and hand you some crisp bills after using your cash-back credit card, but you will earn cash back in the form of a statement credit, a deposit in your bank account, a check or another method.