12 Best Cash Back Credit Cards for March 2020

You can't beat earning cash back on all the money you spend, and that's why cash back credit cards are a favorite among consumers everywhere. This type of rewards card is easy to use, and when you choose the right card, you can collect plenty of money back every year. If you're looking to get a new cash back card, we've got you covered with the very best selections on the market.

It's little surprise that cash back cards are some of the best credit cards on the market. Cardholders earn rewards for using their cards to make purchases, and can qualify for new cardholder bonuses that pay out as much as $150 in the first few months after opening an account. Whether you want to earn flat cash back on all of your spending, or find a card that doles out bonuses for spending on gas, groceries, restaurants, and other categories, there's a credit card out there that's perfect for you. Best of all, most cash back cards are no annual fee credit cards, making them suitable for people with all levels of spending needs.

Cash back credit cards earn cash for the cardholder on every purchase. If you have a card that earns 2% back, then a $100 purchase would get you $2 back. That cash goes into your cash-back balance until you choose to redeem it.

How you can redeem your cash back depends on the card. Almost every cash back card lets you apply your cash back as a statement credit towards previous purchases. With this option, you could use $100 in cash back to reduce your credit card bill by that amount. Other common ways to redeem cash back include deposits to a bank account or a check in the mail.

Cash back credit cards generally fall under one of three different categories of rewards programs. Which one is best for you depends on what you spend, where you spend, and how much effort you want to put into collecting cash back on every swipe of your card.

Flat cash back credit cards: These are the simplest cash back cards, because they offer flat cash-back rewards every time you make a purchase. These cards usually offer unlimited cash back equal to 1% to 2% of your purchases. The key advantage of flat rate versus bonus category cards is you'll earn rewards on all your spending at the same rate, making them a great pick for a "one-card" wallet. Rewards are typically unlimited, so you earn the same cash-back rate whether you spend $10 or $10 million.

Bonus category cards: Some cash back cards offer enhanced rewards rates on certain types of spending. For example, there are gas and groceries cards and credit cards for dining out, each of which earn more back in those specific areas. The best cards for dining out will benefit anyone who goes to restaurants often.

Rotating bonus category cards: These cards offer a high cash-back bonus approximating 5% on certain types of spending, in addition to a flat amount of cash back of around 1% on all other types of spending.

There are five basic features that tend to separate the best cash back cards from the worst. These details are often lost in the fine print, but we're here to shine light on the things that can help you pick the best card for you.

Here are five features the best cash back cards should have:

1. A low minimum redemption threshold: Cash-back rewards don't have any value unless you can cash them in. Some cards require you to earn as much as $50 in rewards before they can be redeemed, whereas other cards have no minimum redemption requirement. People who have lower spending needs may be smart to prioritize a card that offers a no-minimum redemption feature, even if it offers a lower cash-back rate per $1 of spending.
2. New cardholder bonus: Qualifying new cardholders can get a bonus of $150 or more in bonus cash back for opening a credit card and meeting a minimum spend requirement. For example, many of our favorite cash back cards offer $150 in bonus cash back after spending $500 in the first 90 days after account opening.
3. 0% intro APRs: Some cash back credit cards offer up to 12 months of 0% intro APRs on purchases and balance transfers. This is a valuable perk that can save you hundreds of dollars in interest compared to carrying a balance at a typical APR of 18%. (This isn't a "must-have" feature if you don't carry a balance.)
4. Free FICO® Scores: It's becoming more common for credit cards to offer free access to your real FICO® credit score. This is a useful feature for people who value being able to watch their credit score rise or fall over time.
5. No annual fees: Luckily, annual fees are relatively rare in the world of cash back credit cards.

Following some best practices can help ensure that you earn the highest possible rewards from a cash back credit card without paying fees or interest to do so. Here's a quick guide to using a cash back credit card responsibly:

1. Get a new cardholder bonus. Sign-up bonuses add a lot of upfront value to cash back credit cards, as many offer as much as $150 in bonus rewards for spending as little as $500 within 90 days of account opening. To put that in perspective, you'd have to spend $10,000 at a flat 1.5% cash-back rate to earn $150 in ordinary rewards.
2. Use an issuer's shopping portal. Many card issuers have an online portal that pays bonus rewards when cardholders use it to navigate to an online retailer to make a purchase. These bonus rewards can add up fast, as many offer 3% to 10% cash back on purchases you'd make anyway. Before you shop online, see if your card issuer has a relevant bonus offer.
3. Look for rewards, bonuses, and multipliers. Customers who are Preferred Rewards clients with Bank of America, for example, can score an even larger bonus of 25% to 75% on their rewards. Depending on your status with the card issuer, these bonuses can substantially increase the effective rewards yield of a cash back credit card. This is just one example of how having a banking relationship across multiple products (not just credit cards) can increase the value of a cash back card.

A cash back credit card will be perfect for you if most or all of the following statements are true:

• You prefer easy-to-use credit card rewards. Cash back cards make credit card rewards simple, unlike credit cards that earn travel points or store points you sometimes need to learn how to use.
• You don't have any credit card debt. Since most credit cards carry double-digit interest rates, credit card debt will always cost you more than you can earn in rewards. If you have any credit card debt, it'd be better to look at balance transfer cards to pay that off before focusing on cash back.
• You always pay your credit card bill in full. To benefit the most from a cash back card, you need to pay your card's entire statement balance every month to avoid any interest charges. Otherwise, that interest will outweigh any value you get from your card's rewards.
• You don't travel often. Cash back credit cards are ideal for those who don't take many trips and wouldn't benefit much from a travel card. But if you travel at least two to three times per year, you might save more money with the perks and points earned on a travel rewards card.