Personal Finance
9 Best Cash Back Credit Cards of April 2023
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Best for Groceries
Blue Cash Preferred(R) Card from American Express
Our Partner
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Annual Fee:
$95
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Base Rate:
1%
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Main Bonus Categories:
6% at U.S. supermarkets up to the first $6,000 spent annually
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Best with No Annual Fee
Chase Freedom Unlimited(R) Credit Card
Our Partner
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Annual Fee:
$0
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Base Rate:
1.5%
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Main Bonus Categories:
5% on travel through Chase Ultimate Rewards(R)
Learn More
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Best for Dining
Capital One Savor Card
Our Partner
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Annual Fee:
$95
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Base Rate:
1%
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Main Bonus Categories:
4% on dining, entertainment and groceries
Learn More
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Best for Rotating Categories
Chase Freedom Flex?
Our Partner
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Annual Fee:
$0
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Base Rate:
1%
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Main Bonus Categories:
5% on quarterly categories up to $1,500 spent each quarter
Learn More
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Getting something back for your everyday purchases is probably one of the best reasons to use a credit card.
While most cards on the market offer a variety of rewards and perks, the best cash back credit cards will reward you in an easy, tangible way: by giving you a fixed percentage of what you spend, delivered right to your account or, in some cases, your door in the form of a check.
Read our guide to find out which cards offer the highest cash back rates and choose the right one for you.
Our Top Picks for Cash Back Credit Cards of April 2023
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Chase Freedom Unlimited® — Best with No Annual Fee
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Blue Cash Preferred® Card by American Express — Best for Groceries
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Alliant Cashback Visa® Signature Credit Card — Highest Cash Back Rate
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Capital One Savor — Best for Dining
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Wells Fargo Active Cash® Card — Best Flat Rate
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Sam’s Club Mastercard® — Best for Gas
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Chase Freedom Flex℠ — Best for Rotating Categories
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Amazon Prime Rewards Visa Signature® Card — Best for Retail
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Bank of America® Customized Cash Rewards — Best for Custom Categories
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Other credit cards we considered
Best Cash Back Credit Cards Reviews
Pros
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5% back on travel if you book through Chase Ultimate Rewards(R)
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3% on dining and drugstore purchases
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Often has a high-value intro offer
Cons
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Foreign transaction fee
HIGHLIGHTS
- Annual fee
- Insurance and protection
Why we chose it: Simply put, the Chase Freedom Unlimited® offers more bonus categories and higher cash back rates than most no-annual-fee cards — higher, in fact, than than some cards that do charge an annual fee.
The Chase Freedom Unlimited® is one of the most popular credit cards and with good reason. Its high reward rates, travel and rental car insurance, and lack of an annual fee make it one of the best cards around.
Originally, the Chase Freedom Unlimited® only provided 1.5% of unlimited cash back on all purchases. In 2020, however, Chase added a 5% cash back on travel purchases when booked through Chase Ultimate Rewards®, 3% on dining and drugstores while keeping 1.5% on all other purchases.
These benefits, along with rental collision waiver and flight cancellation insurance, make it one of the best cards for travel. Do note that it has a pesky 3% foreign transaction fee, which applies to any purchase you make abroad.
Finally, Chase Ultimate Rewards® frequently provides promotional offers for cardholders, and you can often get up to 20% cash back at specific stores upon activation.
Pros
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6% back at U.S. supermarkets up to the first $6,000 each year
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6% on select U.S. streaming subscriptions
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3% on transit (includes U.S. gas stations, public transportation and more)
Cons
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$0 introductory annual fee for first year, but $95 annual fee thereafter
Terms apply. Click here for applicable rates and fees.
HIGHLIGHTS
- Annual fee
- Insurance and protection
Why we chose it: The Blue Cash Preferred® Card from American Express offers incredibly high rewards, especially when it comes to groceries and transportation.
American Express® cards are known for providing plenty of rewards and luxury perks, and the Blue Cash Preferred® Card is easily its best cash back credit card.
It offers one of the highest rates out there when it comes to groceries — 6% cash back at U.S. supermarkets up to the first $6,000 spent, after which you get 1%. That’s a potential $360 back per year for a family or anyone that can really max out the category, plus however much you earn with the subsequent 1%.
Cardholders also get 6% back on select U.S. streaming services, including fan favorites like Netflix, Hulu and Spotify. (Terms apply.) This means that, depending on how many subscriptions you have, you could get over $30 back a year just for binge-watching your favorite shows.
Whether you and your family commute by car or use public transportation, this card has cash back rewards for you. It offers 3% cash back on U.S. gas stations, public transportation such as trains and buses, plus tolls and even parking. (Terms apply.)
The biggest downside is the card’s $95 annual fee. While it also comes with benefits such as secondary rental car insurance, purchase protection and more, the $95 might not be worth it if your grocery shopping is minimal and/or you don’t commute much.
If the annual fee is a deal-breaker, you can also take a look at the Blue Cash Everyday® from American Express. It offers 3% back on U.S. supermarkets, U.S. online shopping and U.S. gas stations, up to $6,000 on each of those categories, and 1% after.
Pros
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High 2.5% cash back on all purchases up to $10,000 per billing cycle
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Visa Signature(R) benefits such as purchase and identity theft protection
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No foreign transaction fee
Cons
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Cardholders must comply with certain requirements to get the 2.5% rewards
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No introductory offer
HIGHLIGHTS
- Annual fee
- Insurance and protection
Why we chose it: Alliant’s credit card has an advantage over all other flat rate cards: a 2.5% cash back on every qualifying purchase up to $10,000 spent monthly. That’s a potential $3,000 in cash back per year.
This card by Alliant Credit Union offers the highest flat-rate cash back around: 2.5% on every purchase, up to the first $10,000 spent per billing cycle. This is a potential $3,000 if you spend the full amount; after that, you can still keep earning unlimited cash back at a base rate of 1.5%.
While the rate is certainly attractive, earning it does involve certain requirements. To qualify for the 2.5% earning rate, you have to be an Alliant Tier One customer. This means cardholders must have an Alliant High-Rate Checking account, keep an average daily balance of $1,000 or more, sign up for eStatements and make at least one electronic deposit a month.
This could be onerous or even inaccessible for some potential customers. However, if you can easily meet these requirements, the 2.5% will be well worth it. If you don’t qualify for the 2.5% rewards, you’ll still get cash back, but at a 1.5% rate.
In addition to its high rewards, the card includes significant perks, such as travel accident insurance, purchase protection and other warranty policies. This makes the Alliant Cashback Visa® Signature a very complete package that, when paired with no annual fee, can yield enormous savings.
Pros
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Unlimited 4% back on dining, entertainment and select streaming services
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3% at grocery stores
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8% on purchases booked through Capital One Entertainment
Cons
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$95 annual fee
HIGHLIGHTS
- Annual fee
- Insurance and protection
Why we chose it: The Capital One Savor is practically custom-made for a good night out, offering high rewards on dining as well as entertainment.
Many cards offer bonus rewards on dining and takeout; however, if your week regularly includes date nights and hitting the town to catch games and live shows, few come close to the Capital One Savor.
It offers 4% cash back on dining, which includes all sit-down restaurants, coffee shops and fast food places. It also offers 4% on entertainment such as concerts, movies, sporting events and more, as well as streaming services. However, you can double this entertainment rate to 8% if you purchase tickets through Capital One Entertainment.
If you want to cook at home, you can benefit from the 3% cash back on groceries. Capital One, NA is very specific with grocery store purchases, though, excluding wholesale clubs and super stores like Target and Walmart. To see what qualifies for this rate, check Capital One, NA’s list to be sure.
Keep in mind that this version of the card has a $95 annual fee. If you don’t go out to eat much, the no-annual-fee Capital One SavorOne Cash Rewards Credit Card could be a better option.
Pros
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2% back across the board on all purchases
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No annual fee
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Often has valuable introductory offers
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Cell phone protection
Cons
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No bonus categories
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Foreign transaction fee
HIGHLIGHTS
- Annual fee
- Insurance and protection
Why we chose it: The Wells Fargo Active Cash® Card is as straightforward as cards come, offering 2% on all purchases, along with a great intro offer to jump-start your earnings.
Flat-rate cash back cards are great for anybody who just wants to earn rewards without complications. Just swipe away and get a fixed amount back every single time. In the case of the Wells Fargo Active Cash® Card, you get 2%, higher than the more common 1.5%.
As an additional bonus, the Wells Fargo Active Cash® stands out from many competitors by offering that 2% without restrictions or hoops to jump through. As of publication time, it also has a sizable introductory offer that surpasses that of most 2% flat-rate cards.
On top of this, the Wells Fargo Active Cash® Card offers cell phone protection up to $600, which most of its competitors lack, along with standard credit card security such as fraud protection and alerts.
Pros
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5% back on gas until the first $6,000 spent
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3% on dining
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3% at Sam’s for Plus members
Cons
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Needs a Sam’s Club membership
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Only 1% at Sam’s for non-Plus members
HIGHLIGHTS
- Annual fee
- Insurance and protection
Why we chose it: Plain and simple, no other card offers 5% back on gas like the Sam’s Club Mastercard® does — this, in addition to other great benefits, makes it a great option for avid Sam’s Club shoppers.
The Sam’s Club Mastercard® is not just for wholesale shopping fans as it also offers benefits outside the store.
First, cardholders get a 1% base rate. That means 1% cash back on every purchase, whether at Sam’s or not. You also get 3% back on dining, a highly competitive rate in the category. Those who have the more expensive, $100 Sam’s Plus membership can enjoy a total 3% back on Sam’s Club purchases, though regular Club members will only get 1%.
Finally, all Sam’s Club Mastercard® users get a whopping 5% back at U.S. gas stations up to the first $6,000 spent each year, and 1% thereafter. If you commute long hours or own a large gas-guzzler and reach that amount, that’s $300 of cash back each year, plus however much you earn with the other 1%.
You can use all this cash back to pay at any Sam’s Club, both at the register or through the mobile app, or redeem it for actual cash at the cash register.
Having said that, the lackluster introductory offer, the lack of any travel or purchase insurance and the need to be a Sam’s Club member are definite drawbacks. However, if you live near Sam’s major competitor, check out the Costco Anywhere Visa® Card by Citi, which offers 4% on gas up until the first $7,000 spent, and 1% afterwards.
Pros
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5% back on rotating quarterly categories
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5% on travel through Chase Ultimate Rewards(R)
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3% on dining and drugstores
Cons
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1% base rate on all other purchases
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Foreign transaction fee
HIGHLIGHTS
- Annual fee
- Insurance and protection
Why we chose it: The Chase Freedom Flex℠ packs great rewards and perks; add on the 5% cash back on quarterly categories and it’s easily one of the best cards in the category.
A card that simply offered 5% back on travel, 3% on two extra categories and nothing else would already be a leading contender for best cash back card.
But the Chase Freedom Flex℠ offers that and more. It offers 5% on travel booked through the Chase Ultimate Rewards® portal, 3% on dining and drugstores, 1% on everything else, and a high 5% on rotating bonus categories up to the first $1,500 spent each quarter. The categories depend on Chase’s cash back calendar; for example, you could get 5% back on gas one quarter, followed by the same rate of rewards on purchases at Amazon the next.
It also offers significant insurance and protection, which is rare for cards with no annual fees. It has trip cancellation and delay insurance, cell phone protection, extended warranties, purchase protection and more.
Keep in mind that the Chase Freedom Flex℠ only offers 1% on regular purchases. If you’re not going to use or keep track of the 5% rewards categories, you should consider the Chase Freedom Unlimited®, our pick for best no-annual-fee card.
Pros
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5% on Amazon shopping
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2% on dining, gas and drugstore purchases
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Great protection and insurance benefits
Cons
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1% base rate
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Must be a Prime member to enjoy highest rewards
HIGHLIGHTS
- Annual fee
- Insurance and protection
Why we chose it: With one of the highest store-specific cash back rates, and one of the largest product selections in the world, this Amazon card can get you hundreds of dollars back a year.
The amount of products and services that tech giant Amazon offers is, arguably, the largest selection in the world. A card that gives you 5% every time you hit that purchase button is definitely a good addition to your wallet.
You can also get up to 10% on select products every so often, as well as get 5% at Whole Foods. If you’re a big fan of that avocado, dairy-free ice cream, this card is made for you.
While you can get the Amazon Prime Store Card and get 5% cash back, the Amazon Prime Rewards Visa Signature® Card by Chase offers additional benefits beyond that. Since it’s a regular Visa®, you can use it everywhere and still get rewarded. It offers 2% on dining, gas and drugstore purchases, as well as 1% cash back on everything else. Even if this is your only card, it’s a pretty good deal.
It also offers a wide variety of insurance and protection services, including travel accident insurance, rental car collision waiver, luggage reimbursement, purchase protection and more.
If you’re already a Prime member and do a lot of your shopping in Amazon-affiliated sites or stores, including using AmazonPay, this card is one of your best ways to get rewarded for it.
Best for Custom Categories: Bank of America(R) Customized Cash Rewards
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Our Partner
Pros
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3% back on category of your choice and 2% on groceries up to $2,500 combined each quarter
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Preferred Rewards members could get even more cash back
Cons
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Spending cap for bonus rewards is low
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No insurance
HIGHLIGHTS
- Annual fee
- Insurance and protection
Why we chose it: The Bank of America® Customized Cash Rewards has top notch customizability, allowing cardholders to choose from a long list of categories the ones that yield the most rewards for them.
This card by Bank of America is, as its name suggests, customizable. You can choose a category each quarter and get a high 3% cash back on qualifying purchases of up to $2,500 each quarter. The eligible categories are dining, gas, travel, drug stores, online shopping and home improvement or furnishing.
You also earn 2% at grocery stores and wholesale clubs. Keep in mind, however, that this is also within the $2,500 spending cap per quarter. Still, this cap is higher than most competitors.
Preferred Rewards members, who must comply with hefty checking account requirements ($20,000 three-month combined daily average to qualify for the lowest Gold Tier), can get even more cash back on all categories. Gold members could earn 3.75% cash back on their custom category, for example, and all the way up to 5.25% for Platinum and Diamond members.
On the downside, the Bank of America® Customized Cash Rewards doesn’t provide added features beyond standard services such as fraud and overdraft protection. There’s no travel-related insurance policies or cell-phone protection.
Other cash back credit cards we considered
Citi Custom Cash℠
The Citi Custom Cash℠ is similar to a rotating categories card, but personalized. It offers 5% cash back on the cardholder’s most used category each billing cycle, on spending up to $500 a month. While it’s a great card, its low spending cap for extra cash back, along with the absence of bonus categories, leaves it a little behind other options.
Pros
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5% back on user’s highest spending category up to $500 a month
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Categories are not limited to a pre-established list
Cons
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$500 spending limit on 5% rate can be too low for some users
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1% base rate
Discover it® Cash Back
The Discover it® Cash Back Card offers a cash back match during the first year, meaning it doubles however much you earned at the end of the year. However, once you lose that perk after the first year, its reward rate isn’t as high as many competitors’.
Pros
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5% cash back on quarterly categories up to $1,500
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Cash back earned is matched at the end of your first year
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Usually has a good welcome offer
Cons
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Only 1% base rate
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No additional spending categories
Apple® Card
Apple’s credit card provides one of the most intuitive and transparent ways to pay out there if you’re using Apple Wallet. It also has great rewards that are paid almost instantaneously. However, its lack of intro offers and the need to use Apple Pay to earn these high rewards leaves it out from our top picks.
Pros
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2% whenever using Apple Pay
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3% on Apple, Uber, Walgreens and anything bought through iTunes
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Fastest cash back program in the industry
Cons
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No welcome offer
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Only 1% whenever using the physical card
SoFi Credit Card
This SoFi card has an interesting approach to rewards, offering even higher payouts when you make deposits into an investment account. You get 3% cash back during the first year and 2% thereafter. However, it’s actually a system of points that equates to a cent each (like cash back) only when redeemed for shares or deposited into a SoFi account. The rate drops considerably when used as a statement credit and can’t be redeemed as cash outside of SoFi.
Pros
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3% cash back equivalent when redeeming for shares during the first year (2% afterwards)
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No foreign transaction fee
Cons
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Rewards are not redeemable outside of SoFi accounts
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Points are only worth $0.005 when used as statement credits
Capital One Spark 2% Cash Plus
This business card from Capital One provides unlimited 2% cash back on all purchases, as well as 5% on travel and rental cars when booked through Capital One Travel. Although it has a high $150 annual fee for its rewards, businesses that spend over $200,000 in a year, get an annual $200 bonus that can make up for it. It doesn’t provide much more than that, unfortunately, which is why it doesn’t make the cut.
Pros
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Unlimited 2% on all purchases
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5% on travel through Capital One Travel
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Annual $200 bonus after spending $200,000
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Extended warranty
Cons
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No travel-related insurance or statement credits
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High $150 annual fee
Cash Back Credit Cards Guide
Credit cards can be complicated. Calculating and evaluating points versus cash back can be confusing, plus other rewards, perks and insurance policies are hard to keep track of.
In this guide, you’ll find information about cash back rewards specifically, how they work and how to choose the right card for your purchasing habits.
What are cash back credit cards?
Although it sounds too good to be true, cash back credit cards do just that: they give you a small amount of your spending back. Unlike points, which are subject to the issuer’s rewards program and formulas, cash back corresponds to dollar value. That is, if you spend $100 and your credit card offers 1% cash back, you’ll get $1 back in your account.
This can be instant, like with the Apple® Card, but cash back may be paid monthly or yearly.
Depending on your preferences, cash back earnings can be used as a statement credit to pay the card back or as points in the issuer’s website, which you can then redeem for certain products and services. Or it can be actual cash added to your bank account via direct deposit.
It’s important to note that different terms apply to different credit cards, and “qualifying purchases” or “eligible purchases” can mean different things. In some cases, qualifying purchases can mean those from specific stores or categories, while in other cases, some purchases yield no cash back at all.
However, in most credit cards (and all of our picks), this exception is usually mentioned for the base rate or flat rate. This means that you typically won’t get cash back for transactions such as money orders, balance transfers, person to person deals (with the exception of the PayPal Cashback Mastercard®), or things of that nature, but most purchases will at least get the minimum cash back.
Reading the card’s fine print is important, especially in terms of specific exclusions about bonus categories or offers. For example, some cards specify that wholesale clubs don’t qualify as supermarkets. That means purchases at Costco or other wholesale clubs won’t earn the high rate of rewards available for supermarkets, but you’ll still earn the base rate cash back.
Types of cash back credit cards
Most credit cards feature a specific type of reward structure, such as a flat cash back percentage on all purchases or the use of bonus categories, in which the cardholder earns bonus rewards for purchases of a certain brand or kind of product or service. Some cards might combine aspects of both of these reward structures and use a hybrid approach.
These are the main types of cash back you’ll find:
Flat rate credit cards
Flat rate credit cards have a fixed cash back percentage across the board. Anything you purchase, with the exception of money orders, fee payments and similar transactions, will earn the pre-established percentage.
Most flat rate cards have a higher cash back base rate than other types. A typical flat rate card earns 1.5% cash back. Many of these feature “Unlimited” in their names, which, as that implies, means there are no monthly or annual spending limits past which you can’t earn rewards. However, unlimited flat rate cards usually do not have bonus categories that can garner you higher cash back rates.
Recently, there’s been a spike in cards with a 2% across all purchases, such as the Citi® Double Cash Card and the Wells Fargo Active Cash® Card.
These are great choices for those who want a single card to get high rewards on absolutely everything. For lucky cardmembers who can pay expensive bills with their credit card, like rent or a car loan (if your lender allows it without charging fees), this can be especially rewarding.
Bonus categories or tiered rewards credit cards
Many cards offer higher cash back rates in special categories — in some cases, much higher. The categories can vary widely and depend on the type of card you get. For example, a specialized dining card may earn you bonus cash back at restaurants, while a card partnered with a specific store might give extra rewards or special discounts on purchases with that retailer.
These rewards are usually tiered. For example, a card can offer 4% back on gas, 3% at drugstores, 2% on streaming and 1% on everything else. This minimum on everything else is regularly referred to as the base rate.
Rotating or quarterly categories cards
Some cards offer a set rate of cash back, but change categories throughout the year. For instance, a card can offer 5% on gas during the first quarter of the year, and then 5% on travel during the second.
This method usually requires activation on the user’s part and regular attention to see what the calendar brings next.
Custom categories cards
Some credit card issuers let users choose a specific bonus reward category every quarter from a preselected list.
However, this method, just like rotating categories, tends to have a low spending cap for bonus rewards and requires activation.
Cash back categories
While they reward spending differently, most cards use Merchant Category Codes (MCCs) to identify purchases and then reward each one differently.
How issuers group and reward these categories can be flexible, however, which can work in your favor or not, depending on your shopping habits. For example, if you buy groceries at a drugstore, you’ll get the rate awarded to drugstore purchases, not supermarkets. With some cards, that means higher rewards; with others, it’s a lost opportunity.
These are some of the most common ones:
Restaurants. This includes restaurants, fast foods, cafes and most sit-down establishments. Some issuers use the word dining, which can sometimes (but not always) include takeout and delivery services.
Gas stations. This rewards you when paying at the pump, but it might also include other purchases at the gas station. Another possible category is transit, which typically includes gas, along with public transportation, paytolls, taxis, parking and more.
Travel. Travel doesn’t just include airfare, but hotels and rental cars as well. While most popular travel-focused cards use points systems, there are some cash back options with high travel rewards when you use their digital portals for booking vacations.
Supermarkets. Often specified as “U.S. Supermarkets,” this is just what it sounds like. However, in many cases the category excludes wholesale stores like Costco and stores such as Walmart and Target®. This category of spending can also be called groceries.
Retailers. Some stores tend to offer high reward rates if you use their co-branded cards at their retail locations. In this case, it’s not so much a category but benefits you can get from purchases made with a particular store or brand.
Streaming services. Some cards offer high rewards on select streaming services, which considering all the current options, can amount to quite a bit. Be sure to check each issuer’s list of approved services to ensure your favorites are included.
Utilities. Bills such as energy, water and internet can be categorized as utilities and yield higher rewards with certain cards.
Business expenses. Although “business expenses” is not a category of its own, the best business credit cards often reward business-related expenses such as telecommunication services, shipping services or advertising and marketing. These are all separate categories, so make sure you look at which one each card offers.
Pros and cons of cash back credit cards
There are two main types of rewards structures: points and cash back. While cash back is fairly straightforward, points are measured by the issuers’ own systems.
If you want a more in-depth look at credit cards all around, and the differences between rewards structures, you can check out our article on the best credit cards, which takes a look at credit cards of all types.
Here are some advantages and drawbacks of cash back over points.
Pros
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Cash back is literally money in your pocket.
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Cash back is simple and easy to calculate.
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Cash back can be used to pay back the credit card itself.
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Introductory offers often feature reduced interest charges and can provide extra cash back.
Cons
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Cash back’s value is often static, while redemption options for points are more flexible.
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Cash back cards usually have fewer perks than premium, point-based cards.
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Rewards could give false sense of saving, driving users deeper into debt.
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Annual fees could outweigh rewards.
How to choose a cash back credit card
In the process of applying for a cash back credit card, you should take into account your personal finances and spending habits as well as other factors.
Here are some things to consider before filling the application.
1. Your credit status
The first step when applying for a new credit card is to understand how lenders analyze your financial status and what their requirements are. Some lenders are more lenient than others, but all will take into account your income, your debt-to-income ratio and your FICO score, among many other factors.
If you’re just starting out, you may want to learn what is a credit score and how to build credit, and perhaps obtain a copy of your credit report if one is available. You could also take a look at secured credit cards, for example, or check out our best student credit cards if you’re in college.
And, if your credit isn’t where you’d like it to be, check out the best credit repair companies, which could help you raise your score before you apply for a new card.
2. Consider spending habits when looking at rewards rates
If you’re looking for the best cash back credit cards, it means you’re in it for the rewards. Analyze and compare the different tiers of cash back offered by each card and evaluate how much you spend in each category.
For example, a big family or an avid home chef might benefit from high rewards on groceries with a card like the Blue Cash Preferred® from American Express. However, someone who doesn’t have a particular category that accounts for a lot of their monthly expenses could be better off with a flat-rate option such as the Wells Fargo Active Cash® Card.
3. Calculate whether the annual fee is worth it
While cash back cards don’t typically charge high annual fees, you’ll still have to analyze whether the rewards make up for the fee. Say you manage to earn $1,000 in cash back with a 2% cash back card, but have to pay a $95 annual fee. Your yearly cash back total will be $905. But if you could instead make $950 with a 1.5% cash back card that doesn’t charge an annual fee, you’d be better off.
4. Compare introductory offers
Most cards include intro offers to lure applicants. Some are in the form of introductory bonuses, giving $50 to over $1,000 after the cardholder reaches a spending requirement within a few months from the account opening.
Some cards also have a promotional period with a 0% introductory APR offer on purchases and, possibly, balance transfers — frequently, on both. This period can be from nine months all the way up to 21 months. Some cards also offer lower balance transfer fees during the first few months from account opening.
The best cards tend to have a combination of these offers. You might see, for example, a $200 bonus after spending $500 in the first three months, along with 12 months of 0% intro APR.
5. Compare cardholder benefits
Other than monetary rewards like cash back and gift cards, some cards offer an array of benefits that can include travel insurance and purchase protection.
A seemingly small additional benefit such as cell phone protection can be the one distinguishing factor between two cards. Make sure you look at sections breaking down all the services provided, normally titled “Service & Protection.”
You may also find luxury travel benefits included with the card such as priority boarding, restaurant reservations or airport lounge access.
6. Compare interest rates
A couple of percentage points in interest rates can make a huge difference in the long run. Make sure to look at and compare regular and variable APRs — that is, the rate you’ll be charged after any promotional introductory period is over — to know what to expect.
Cash back cards vs. travel cards
Travel benefits are big reasons people want rewards cards. However, travel cards normally use points or miles instead of cash back. The cards with the most benefits can also be quite expensive, with annual fees ranging from $95 to $695. These typically require excellent credit too.
However, cash back options — especially no-annual fee cards — can be more versatile while still offering good benefits for traveling. For example, the Chase Freedom Unlimited® and Chase Freedom Flex℠ offer 5% when booking travel through Chase Ultimate Rewards®, as well as flight cancellation insurance.
If you’re looking for top-notch perks like statement credits for TSA PreCheck® or access to luxury lounges, check out our articles on the best travel credit cards and the best airline credit cards.
Latest News in Cash Back Credit Cards
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Due to many factors, such as reemerging from pandemic isolation and high inflation, credit card debt is reaching record highs. For more on this, read our article: Credit Card Debt Rose Hand in Hand With Inflation Last Year
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Some people may have credit cards just laying around, whether it’s because they have a better one or they just have it to boost their credit. However, inactive credit cards could get closed by issuers and impact your credit utilization ratio. For more details, read our article: Will Credit Card Companies Actually Close Your Account if You Don’t Use Your Card?
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This renowned dining credit card is now offering much higher cash back on Uber and Uber Eats orders. Read the details on this offer: These Credit Cards Just Started Offering 10% Cash Back on Uber and Uber Eats
Cash Back Credit Cards FAQ
How do cash back credit cards work?
Cash back credit cards return a percentage of what you spend on your credit card on a periodic basis. This percentage can be redeemed to buy certain products or services through the bank’s online portal, or as a check in the mail. It can also be given as a statement credit to pay back part of your credit card bill.
What is the best cash back credit card?
The best cash back credit card depends on your spending habits and needs. We consider the Chase Freedom Unlimited(R), which has no annual fee and offers a wide array of perks and bonus cash back categories, as one of the best ones out there, as well as the Blue Cash Preferred(R) from American Express, which despite its $95 annual fee, offers high rewards in everyday categories.
Is cash back taxable?
Cash back is not taxable since it’s considered a rebate or discount. However, sign-up bonuses that are awarded just for enrollment could be taxable. If you earned many of these throughout the year, especially from business credit cards that offer higher amounts, keep in mind that you’ll most likely have to pay taxes on them.
When does my cash back expire?
In the majority of cases, cash back does not expire unless the account is closed.
How do I redeem my cash back?
Redeeming cash back depends on the issuer. In some cases, like the Apple(R) Card, you’ll receive the cash back through their app almost immediately. With others, the cash back is reflected each billing cycle. With some cards, you’ll get your rewards yearly in the form of a check.
Can I ask for cash back with a credit card at the cash register?
No, you can only get cash back at the register when you use a debit card. When credit cards refer to “cash back,” it means the card issuer gives you back a small percentage of what you spent throughout the year as a check or points, usually redeemable on the card issuer’s website. However, you may be able to redeem cash back from a store’s credit card at one of that store’s establishments, such as with the Sam’s Club Mastercard(R).
How We Chose the Best Cash Back Credit Cards
In order to find the best cash back credit cards for each situation and lifestyle, we used the following methodology:
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Cash back rates: We looked at cash back percentages on all purchases, bonus categories and other offers available for each card. Depending on the usefulness of each category, the spending limits, if any, and base rate cash back, we calculated the possible earning rate to see how competitive each card is.
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Trustworthiness: There are a lot of options out there in terms of credit cards, but not all come from well-known and trustworthy issuers. We looked at the JD Power 2022 Credit Card Satisfaction Study℠, as well as reviews on other third-party websites, to see which banks and issuers did right by their customers.
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Introductory offers: Intro offers are a big deal when applying for a new card. We looked at issuers that offer high welcome bonuses and/or long-term 0% introductory APR on purchases, as well as any of their intro balance transfer promotions.
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Extra benefits: Most cards have ways of protecting users from fraud, but some have additional protection such as extended warranties, rental car insurance and flight cancellation coverage. Many cash back cards are lacking in this category, so those that offer solid protection had a leg up on their competition.
Summary of Money’s Best Cash Back Credit Cards of April 2023
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Chase Freedom Unlimited® — Best with No Annual Fee
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Blue Cash Preferred® Card by American Express — Best for Groceries
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Alliant Cashback Visa® Signature Credit Card — Highest Cash Back Rate
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Capital One Savor — Best for Dining
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Wells Fargo Active Cash® Card — Best Flat Rate
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Sam’s Club Mastercard® — Best for Gas
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Chase Freedom Flex℠ — Best for Rotating Categories
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Amazon Prime Rewards Visa Signature® Card — Best for Retail
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Bank of America® Customized Cash Rewards — Best for Custom Categories
* Insurance disclosures for American Express Cards on this page:
Trip Delay Insurance: Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.
Global Assist Hotline: Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Card Members are responsible for the costs charged by third-party service providers.
Extended Warranty, Purchase Protection, Baggage Insurance Plan: Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
Car Rental Loss & Damage Insurance: Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.
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