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The Motley Fool Ascent:
Cash back credit cards let you save cash faster by giving you a certain percentage of money back (often between 1%-6%) on your purchases.
One thing to keep in mind when researching -- our picks below aren't influenced by our credit card partners. Many of these cash back cards are used by our very own team and that's why we are confident in recommending them to you.
Here are cards that target different needs.
Great for: Flat rate cash back
Good/Excellent (670-850)
Intro APR 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR, 15 months from account opening
Balance Transfers: 0% intro APR, 15 months from account opening on qualifying balance transfers
Regular APR
20.24%, 25.24%, or 29.99% Variable APR
Rewards Earn unlimited 2% cash rewards on purchases.
2% cash rewards
Annual Fee N/A
$0
Welcome Offer Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
$200 cash rewards
This card’s unlimited 2% cash rewards on purchases is the highest we’ve seen for a flat-rate rewards card with no annual fee. It also has an incredibly easy-to-earn $200 welcome bonus and a generous intro APR offer. We simply haven’t come across this combination of top perks in one card before. Read Full Review
Great for: No annual fee
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 15 months
Balance Transfers: 0%, 15 months
Regular APR
18.24% - 28.24% Variable APR
Rewards Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
1% - 5% Cashback
Annual Fee
$0
Welcome Offer N/A
Discover will match all the cash back you've earned at the end of your first year.
We think this card has among the highest cash back potential for cards with no annual fee. The key is the Unlimited Cashback Match — Discover automatically matches all the cash back new cardholders have earned at the end of the first year. That cash back can seriously add up when you earn 5% cash back on rotating bonus categories (when you activate them, up to the quarterly maximum) and 1% on other purchases. Read Full Review
Blue Cash Preferred® Card from American Express
Great for: U.S. supermarkets and U.S. gas
On American Express' Secure Website.
Terms apply
On American Express' Secure Website.
Terms apply
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 12 months
Balance Transfers: 0%, 12 months
Regular APR
19.24%-29.99% Variable
Rewards 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.
1%-6% Cash Back
Annual Fee
$0 intro annual fee for the first year, then $95.
Welcome Offer Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
$250
This card offers market-leading cash back at U.S. supermarkets. The welcome bonus and intro APR offer sweeten the deal. Terms apply. If you spend a lot on groceries (excluding wholesale clubs and superstores like Costco and Walmart), this card is worth considering. Read Full Review
Great for: 2% cash back
Fair to Excellent (580-850)
Intro APR N/A
Purchases: N/A
Balance Transfers: 0%, 18 months
Regular APR
19.24% - 29.24% (Variable)
Rewards 2% cash back: 1% when you buy plus 1% as you pay
Up to 2% cash back
Annual Fee
$0
Welcome Offer 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.
20,000 ThankYou® Points
This card combines a top-notch balance transfer offer for 18 months with best-in-class unlimited 2% cash back on purchases. There's no introductory APR for purchases, so you'll need to pay those off in full every month if you want to avoid interest charges. Read Full Review
Bank of America® Customized Cash Rewards credit card
Great for: Cash back of your choice
On Bank of America's Secure Website.
On Bank of America's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 19.24% - 29.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Regular APR
19.24% - 29.24% (Variable)
Rewards 3% cash back in the category of your choice, 2% at at grocery stores and wholesale clubs for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases, 1% on all other purchases.
1% - 3% cash back
Annual Fee
$0
Welcome Offer $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
$200 cash back
This card's wide range of extra cash back options speaks for itself, with a choice of six bonus categories you can change monthly for 3% earnings in the category of your choice. And you can earn 2% back automatically at grocery stores and wholesale clubs. No annual fee and a nice welcome bonus also make this one a winner. Plus, if you're a Bank of America Preferred Rewards member, this card will be even more valuable for you. Read Full Review
Great for: Rotating bonus categories
On Chase's Secure Website.
On Chase's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR on Purchases
Purchases: 0% Intro APR on Purchases, 15 months
Balance Transfers: 0% Intro APR on Balance Transfers, 15 months
Regular APR
20.49%-29.24% Variable
Rewards 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter! Plus, earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases.
5% cash back offer
Annual Fee N/A
$0
Welcome Offer Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening!
$200 bonus
This Chase card is one of our favorites, and with good reason. You earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate, alongside other standout perks (and at least 1% on all purchases). Plus, this one comes without an annual fee and with a generous welcome bonus. Read Full Review
Capital One QuicksilverOne Cash Rewards Credit Card
Great for: Fair credit
On Capital One's Secure Website.
On Capital One's Secure Website.
Fair (300-669)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
29.99% (Variable)
Rewards Earn unlimited 1.5% cash back on every purchase, every day. 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%-5% cash back
Annual Fee
$39
Welcome Offer Cash Back
Cash Back
Getting 1.5% back on every purchase couldn't be easier — and it makes this Capital One card a standout for those who want to improve their credit with responsible use and still earn rewards. You can even sign up to have your cash back redeemed as a statement credit automatically, saving you money every month. Note that it comes with an annual fee of $39, though. Check out this card to simplify your life. Read Full Review
Discover it® Student Cash Back
Great for: Students
Fair/New to Credit Under(669)
Intro APR
Purchases: 0%, 6 months
Balance Transfers: 10.99%, 6 months
Regular APR
18.24% - 27.24% Variable APR
Rewards 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically
1% - 5% Cashback
Annual Fee
$0
Welcome Offer N/A
Discover will match all the cash back you’ve earned at the end of your first year.
Student credit cards are sometimes light on perks, but this Discover one might surprise you. You can earn 5% cash back on up to $1,500 of spending in rotating bonus categories -- just opt in every quarter. And earning 1% back on other purchases plus an innovative Unlimited Cashback Match welcome bonus makes this one worth considering for college students. Read Full Review
U.S. Bank Cash+® Visa Signature® Card
Great for: Cash back versatility
Good/Excellent (670-850)
Intro APR 0% on purchases and balance transfers for the first 15 billing cycles on purchases billing cycles, and after that 19.49% - 29.74% (Variable).
Purchases: 0%, 15 billing cycles on purchases
Balance Transfers: 0%, 15 billing cycles
Regular APR
19.49% - 29.74% (Variable)
Rewards 5% cash back back on up to $2,000 of quarterly spending in two categories of choice and for travel booked directly in U.S. Bank's Rewards Travel Center, unlimited 2% back in one "everyday" category of choice, 1% back on other purchases
1% - 5% back
Annual Fee
$0
Welcome Offer Earn a $200 bonus after spending $1,000 in eligible purchases within the first 120 days of account opening.
$200
You get the power to choose not one, but two bonus 5% cash back categories every quarter with this U.S. Bank card. Plus, you get 5% on travel spending when you book through U.S. Bank. No annual fee, a generous welcome bonus, and 15 billing cycles of 0% APR on purchases and balance transfers round out the perks on this card.
The cards on this list earn between 1% to 6% cash back, but getting the highest cash back card depends on your spending habits.
As you can see, even though it would be great to get high cash rewards every time you spend, that isn't always the case. The rewards you earn are variable and depend on where you shop or what you purchase.
Why we picked it: If you're looking for flat rate cash rewards, this card is a great pick. There are no bonus spending categories so you won't earn more if you spend at certain places.
Apply for Wells Fargo Active Cash® Card
Why we picked it: We can't think of many cards with a cash back program like this one. Get 5% cash back on rotating quarterly categories when activated (up to the quarterly maximum spend), plus unlimited cash back match at the end of your first year. The mobile app is also easier to use and much more modern looking than competitor apps. Keep track of your cash back bonus balance via Discover's Spend Analyzer. Best of all, you can redeem your rewards right from your phone or tablet.
Apply for Discover it® Cash Back
Why we picked it: Do you ever find yourself spending hundreds of dollars at the grocery store in hopes to satisfy your family's hungry appetite? If so, this cash back card may be the right pick. This is one of the highest cash back rates we've seen for groceries and streaming.
Apply for Blue Cash Preferred® Card from American Express
Why we picked it: Rewards look different for this card, as it will show up on your account as "ThankYou points" instead of traditional dollar amounts. This means you'll earn 1 ThankYou point for every $1 spent on purchases. You'll also get an additional ThankYou point for every $1 paid on your balance. All that to say, you'll still get 2% cash back on purchases.
Apply for Citi Double Cash® Card
Why we picked it: Earning 3% in a category you choose is a standout perk, especially since the category options are areas where many people spend a large amount. Also, if you keep enough money with Bank of America to get into its Preferred Rewards program, one of the many benefits is a credit card rewards bonus, effectively boosting your card's cash back rate.
Apply for Bank of America® Customized Cash Rewards credit card
Why we picked it: This Chase card is loaded with bonus categories. It has rotating quarterly bonus categories and fixed bonus categories. Cash back cards normally give you one or the other, but not both.
Why we picked it: It normally takes good or excellent credit to get approved for a card with a high cash back rate. This Capital One card is a notable exception. It's possible to qualify with a 580 credit score -- many cards that earn similar rates require a credit score of 640 to 670.
Apply for Capital One QuicksilverOne Cash Rewards Credit Card
Why we picked it: When you're in college, you probably wouldn't mind saving money where you can, and this student credit card from Discover definitely helps. A 5% cash back rate in quarterly bonus categories (up to the quarterly limit, when you activate) is among the highest we've seen for a student credit. Discover's Cashback Match is also a highly valuable perk only found with Discover credit cards.
Apply for Discover it® Student Cash Back
Why we picked it: This U.S. Bank card puts you in control. It offers the highest cash back rate we've found for categories that you choose, and it offers some unique bonus categories that aren't seen often. If your spending habits change, you can make sure your credit card's rewards change, too.
As you shop for reward credit cards, there will probably be multiple cards that you like. Before you pick the best credit card with cash back, compare these three important features.
If you're looking for a feature-by-feature comparison our credit card comparison tool can help.
Card | Rating | Great For |
---|---|---|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Flat rate cash back |
|
2024 Award Winner
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: No annual fee |
2024 Award Winner
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: U.S. supermarkets and U.S. gas |
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: 2% cash back |
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Cash back of your choice |
|
2024 Award Winner
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Rotating bonus categories |
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Fair credit |
|
2024 Award Winner
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Students |
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Cash back versatility |
A cash back rewards card could save you money. If you have good or excellent credit and can qualify for the best cash back cards, then they're definitely worth checking out. But this type of credit card has its perks and its drawbacks.
Pros
Cons
The great thing about cash back cards is how straightforward and affordable they are. You can find many cash back credit cards with no annual fee. Even the ones with annual fees usually cost less than $100 per year.
There is a tradeoff to those benefits. Cash back cards are affordable, but they also generally have smaller bonuses and fewer features than you could get from a higher-priced travel rewards card.
People often wonder if they should get a rewards credit card that earns cash back or points. Here's the difference between the two:
If you want to keep it as simple as possible, cash back is the better option. You won't need to worry about learning how to use your rewards. You can just redeem them toward your credit card bill or as a deposit to your bank account.
Most cards that earn points are travel rewards cards. With these cards, you normally get more value if you use your points for travel and less if you use them for cash back. They have more of a learning curve, so they're only worth it if you don't mind spending time figuring out how to make the most of your points.
It's worth mentioning that there's now quite a bit of overlap between cash back and credit card points. Some cards technically earn points, but you get $0.01 per point no matter how you use them. With these cards, 1 point is effectively the same as 1% back.
Cash back cards are much more popular, and I recommend them more often because of how easy they are to use. If you travel often, a card that earns travel points could be the better choice. For example, I often get $0.03 or more per point with my travel cards, but I also spend more time looking for ways to use them.
Using the best money back credit cards is a great way to save more every month. Here are the best tips to help you maximize cash back rewards:
Always pay with your cash back credit card. Since you're earning cash back on purchases, take full advantage. Put as much of your spending as you can on your cash back card. There's no reason to pay with cash or a debit card and leave cash back on the table.
Don't carry a balance. The key to saving money with a cash back card is to pay your credit card bill in full by the due date. If not, the card issuer can charge you credit card interest. That will likely cost you as much or more as the cash back you earned.
Get multiple cash back cards to earn more bonus rewards. Instead of using a single cash back card, open a few different cards that earn bonus cash back in separate categories. That way, you could have your gas and groceries card, your restaurant card, your Amazon card, and a card with a high flat rate for all those other expenses.
Complete the welcome bonus requirements. Welcome bonuses are some of the biggest cash back offers you can find, so it's important not to miss out. Whenever you get a new card with a welcome bonus, check how much you need to spend and how long you have.
Check your credit card's online shopping portal for special offers. Many credit card companies have online shopping portals where you can earn up to 10% back with some retailers. Make sure to check if your card issuer offers one and, if so, what type of bonuses are available.
There are three basic types of cash back credit cards: Flat-rate cash back cards, bonus category cash back cards, and rotating bonus category cash back cards. By understanding how each type works, you'll be able to figure out how to maximize some of the best cash rewards credit cards.
Flat-rate cash back cards earn the same rate on purchases, typically 1.5% or 2%. This type of cash rewards credit card is ideal if your spending is fairly balanced and you don't have any particular big spending categories among your everyday purchases.
Consumers who do the math often find that they'll earn the most with a flat-rate cash back card. If you're interested in getting one, the Wells Fargo Active Cash® Card is hard to beat. It can get you 2% cash rewards on purchases.
A bonus category cash back card offers a higher cash back rate in one or more categories, such as groceries, dining, or gas.
Those who spend a lot in certain categories could collect more cash back with the right bonus category card. For example, the Blue Cash Preferred® Card from American Express earns an industry-leading 6% back at U.S. supermarkets for up to $6,000 per calendar year. Terms apply. That's an extremely valuable offer, even with the card's annual fee (see rates and fees). There are bonus category cards to fit just about everyone, whether you need the best credit cards for gas, dining, or a different category.
On eligible purchases outside of bonus categories, these cards have traditionally earned 1% back. But not all bonus category cards are like this anymore.
A rotating bonus category cash back card offers a higher cash back rate in a changing mix of categories. You typically get new bonus categories every quarter with this type of card. In most cases, cardholders must activate their bonus categories before or during the quarter to earn the bonus rate.
The advantages with these cash back credit cards are a very high cash back rate in bonus categories and the fact that you get new bonus categories regularly. But the latter can also be a downside, because you may occasionally get stuck with bonus categories that you won't spend much money in.
Two of the most popular rotating bonus category cards are the Discover it® Cash Back and the Chase Freedom Flex℠. Each offers 5% back on your first $1,500 spent in rotating bonus categories you activate every quarter. The Chase Freedom Flex℠ is unique in that it also offers several fixed bonus categories.
At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.
Our highest-rated credit cards have:
We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Motley Fool Ascent rates credit cards.
Wells Fargo Active Cash® Card has the highest cash back credit card with a flat-rate at 2% for purchases.
Counting bonus categories, the Blue Cash Preferred® Card from American Express is the winner. It earns 6% back at U.S. supermarkets, up to a spending cap of $6,000 per calendar year.
A rate of 1.5% to 2% cash back is considered good for cash back offers with flat-rate rewards on purchases. Cash back rates vary though, so it's good to shop around.
Other cash back cards reward you with bonus cash back for making purchases in specific spending categories. Typically, bonus rates range from 3% to 5%. Keep in mind that some cards with a higher rewards rate may have a monthly or yearly spending cap in place, so you may not be able to earn unlimited bonus rewards.
Credit score requirements vary from one card to another. The best credit card with cash back, attractive rewards rates, and new cardmember bonuses typically require applicants to have good to excellent credit -- a score of at least 670. However, approval is not guaranteed no matter your credit score. Other factors are considered when determining card approval -- such as income and credit history.
In a way, yes. You'll earn a percentage back on purchases that you make with your credit card. You can then redeem your cash back earnings. Some cardholders choose to receive their cash back as a statement credit on their credit card. Others prefer to have their cash back earnings deposited into their bank account.
So, yes -- you can earn real money with a cash back card. You can choose the redemption option that works best for you.
In most cases, cash back credit cards aren't taxable. If you earn the cash back by using your card for purchases, then it's not taxable, because the IRS considers it a rebate on those purchases and not income.
When using your cash back credit card to pay for eligible purchases, you earn a percentage of cash back.
The card issuer automatically calculates the cash back you've earned and adds it to your rewards balance. If you make a $100 purchase and your card earns 2% cash back, then the card issuer would give you $2. This usually happens at the end of every statement period, although there are some card issuers that deposit cash back daily.
Cash back redemption options depend on the card. You may be able to redeem cash back as a statement credit on your credit card bill, as a deposit to your bank account, or as a check. Some cash back cards have redemption minimums, such as $25, but others have no minimum amount.
The keys to maximizing your cash back credit card are using it for every eligible purchase and always paying off the full balance. By using your card for every eligible purchase, you'll collect the most possible cash back. When you pay off your full statement balance every billing period, you never incur interest charges on your purchases. That means you're making money from your cash back cards, without paying any interest to the card issuer.
Our Credit Cards Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
For rates and fees for the Blue Cash Preferred® Card from American Express, click here
The Motley Fool owns shares of and recommends Mastercard and Visa. The Motley Fool recommends Amex.