Credit Cards
By
Summer Hull
Director of content
Summer Hull has been covering (and using) travel tips, rewards credit cards and loyalty programs for over a decade. She has flown close to a million miles, often on points and miles and with her family in tow.
and
Christina Ly
Credit cards writer
Christina Ly is a writer at TPG. She has covered credit cards and personal finance topics since joining the team in 2022.
•
Edited by
•
Reviewed by
Stanley Sanford
Senior compliance associate
Senior compliance associate Stanley Sanford has years of compliance experience in the credit card industry dating back to 2017. He's reviewed content for several reputable sites, including CreditCards.com, Bankrate, CNET. and even thepointsguy.com before leading the compliance team for The Points Guy full time in early 2022.
March 01, 2024
If you’re looking to earn money back on your spending, 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 on every purchase. Each card on this list has been chosen for its great earning rates — from simple 2% flat-rate cash-back cards to those with optimized cash back on specialized spending categories.
No matter your typical spending habits, these cards can help you maximize your everyday purchases and earn rewards that are easy to use. Keep reading to learn more about some of the best cash-back credit cards on the market, chosen by our team of experts.
Check out our curated selection and comprehensive guide on some of the best cash back cards from our partners below.
At The Points Guy, our goal is to help you maximize your travel experiences while minimizing spending. Our travel and credit cards experts share their own experiences and give honest analyses to help you make decisions that benefit you the most. While we do receive compensation through our credit card application links, ads, and clearly indicated sponsored content, our editorial content, points valuations and card analysis are entirely our own.
Browse by card categories
Best
Travel
Airline
Hotel
No Annual Fee
0% APR
Filter by
ANNUAL FEE
$
695
$
$
695
Select all
Show Results (
)
Comparing the best cash-back credit cards
Credit card | Best for | Intro offer | Earning rate | Annual fee |
|---|
More details on the best credit cards
Credit pointers with Brian Kelly
Here's how to choose the best cash back card to suit your spending habits and needs
54 sec video
How to maximize cash-back credit cards
Activate your bonus categories
If your cash-back credit card requires you to activate or select your bonus categories, make sure you set a reminder to do that so you don't leave valuable rewards on the table. This is most common with cards that have rotating bonus categories or the option to select your own bonus categories.
Read : How to choose a cash-back credit card
Consider multiple cash-back cards
After you have identified your major spending categories, you will be able to choose a cash back card that offers the most rewards for your spending. For example, if groceries are a major expense, consider a card that offers elevated earning rates on these purchases. On the other hand, if you’re a foodie and dine out frequently, aim for a card with bonus cash back at restaurants.
Then, in order to maximize your cash-back rewards, consider getting a card with a flat-rate earning structure. A handful of popular cards offer 2% cash back on all purchases, allowing you to fill in the spending gaps where your other cards don’t have an elevated earning rate.
Just be sure to pay attention to foreign transaction fees, as many popular cash-back cards tack on up to 3% when you swipe them outside the U.S.
Stack your rewards
But don’t just settle for the rewards you earn by swiping your card. Another way to maximize your cash-back cards is by using them alongside cash-back apps and online shopping portals. Many popular sites like Rakuten give users bonus rewards on qualifying purchases, and this can be stacked with the cash back you earn by using your credit card.
In addition, the major credit card issuers offer discounts or bonus rewards with targeted promotions on your spending — including Amex Offers, Chase Offers and Citi Merchant Offers. By activating these offers ahead of your shopping trips, you can increase your card’s cash-back potential and maximize your rewards.
new
Points 101
Take off with award travel
Go from points and miles newbie to booking your first award trip in just one month with this email series.
Subscribe
download
The Points Guy App
Keep TPG in your pocket
Maximize your spending, earn more rewards and get recommendations for cards that fit best in your wallet.
View the app
How we rate cards
We rated the best cash-back credit cards on several factors, including how simple it is to maximize the earning structure, the ability to redeem earned rewards as statement credits as well as having the option to transfer cash back to a linked bank account and whether or not a card features an annual fee. We additionally considered how certain cards might pair well with other popular credit cards you may already have to help you accrue and utilize your cash back more quickly.
Welcome bonusCash-back credit cards typically offer decent welcome bonuses that feature low spend thresholds.
Annual feeSome cash back credit cards don’t require cardholders to pay an annual fee and others that do are typically budget-friendly.
Earning ratesChoosing a cash back card that’ll maximize your earnings depends on which categories you most use.
Redemption optionsRedeeming cash back is pretty straightforward, although some cards may require you to meet a minimum amount of cash back before you can redeem.
Added benefitsWe additionally factor in the extra perks — besides cash back — you get when you carry one of the cards on this list.
What is a cash-back credit card?
A cash-back credit card awards you cash – or a cash-like reward – for every dollar charged to the card. For example, if the card awarded 2% back on all purchases and you made a $100 purchase on the card, you’d earn $2 cash back.
Some cash-back credit cards offer a fixed amount rewarded back across all purchase categories, such as in the example above, while others award different percentages back in the form of rewards on various types of spending, such as dining or groceries.
Earned cash back is often awarded in the form of a statement credit. However, it may also be available for deposit into your bank account or via a check. In some cases, cash-like rewards can be cashed out for gift cards or other travel and merchandise items at a fixed rate similar to the value you’d get if you opted for a statement credit.
Cash back vs travel credit cards
The cash back vs points debate is a common credit card contention. Some credit cards reward you with airline miles, hotel points or flexible travel points that can be used in different ways to book that next trip. Sometimes, the points earned by those cards are worth a fixed value (1 cent per point, for example). In other cases, the value of the points may vary based on how you use them.
However, with cash-back credit cards, you are earning a cash equivalent reward. The benefit of this is that you can have more flexibility when it comes to using the rewards. The downside is that you likely won’t get an outsized return for your spending the way you would if you redeemed hotel points or airline miles.
How do cash-back credit cards work?
When you charge a purchase to your cash-back credit card, you earn rewards based on the percentage of cash back your card awards in that purchase category. You are then able to cash out your rewards via options such as a statement credit, a check, a deposit in your checking account, etc.
Types of cash-back credit cards
Cash-back credit cards are a great way to earn on your spending. Luckily, there are many types of cash-back credit cards which means there is a good fit for any wallet.
The simplest cash-back credit cards are the ones that earn the same percentage of cash back on all purchases. This flat rate is often 1.5% to 2% cash back on all purchases, though that amount occasionally goes higher with some credit cards, especially if you have a qualifying existing relationship with the issuing bank. At TPG, we recommend at least a 2% cash back credit card if you're looking for a cash-back card.
Many cash-back credit cards offer different amounts of cash back on various categories or purchases.
For example, a card may award:
- 1% back on everyday spending.
- 2% back at gas stations.
- 3% back on dining and at grocery stores.
This means that tiered cash-back cards often make it so you earn a little less on a broader everyday spending category than you would with some other cards, but you’ll earn a higher amount back in some targeted spending categories.
A few cash-back credit cards award a fixed amount of cash back for everyday spending but also offer as much as 5% cash back for bonus categories that alternate every quarter.
For example, the bonus categories in the first quarter of the year might be restaurants and streaming services before switching to grocery stores and Amazon purchases in the second quarter of the year. In some cases, you have to remember to activate the bonus categories each quarter in order to be eligible for the increased earnings. There is typically a cap on how much you can earn in cash back on those rotating categories per quarter.
There are some cash-back credit cards that put the cardholder in the driver seat and let them choose the categories that earn bonus cash back. With some of these cards, you make the selections yourself. One of the largest cash back credit card mistakes is not selecting the right category to earn the most on your spending. Others automatically give bonus cash back in the eligible category you spent the most in within a billing cycle.
While most cash-back credit cards are available to anyone who meets their approval requirements, a few deem it necessary to have a specific membership in order to be a cardholder. This may include having a membership to a warehouse store, a specific bank or credit union, or another entity.
Some stores will offer a co-branded store card with an elevated cash back rate. Choosing between a credit card or store card will mostly be dictated by your spending but we generally recommend a general cash back card over a co-branded store card.
Common cash-back bonus categories
Some cash-back cards offer an elevated earning rate on select spending categories. This is known as a bonus category and some common ones include:
- Restaurant dining
- Groceries
- Gas stations
- Entertainment and streaming
- Travel including rideshares, trains, buses and more
The best way to get the most out of your cash-back card is to look for one that offers bonus earnings on your most common spending category.
How to choose the best cash back credit card
Choosing the best cash back credit card will most likely depend on whether or not you’re willing to pay an annual fee and what categories you typically spend in. Take stock of where the bulk of your spending occurs and choose a card that aligns with that category.
Here are some of the main points to consider when choosing a cash back credit card:
1
Sign-up bonus
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.
2
Annual fee
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.
3
Bonus categories
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.
How to choose a cash-back credit card - The Points Guy
Maximize your earnings for everyday expenses with a cash back card
Or, get pre-qualified offers here
What is a cash-back credit card?
A cash-back credit card awards you cash – or a cash-like reward – for every dollar charged to the card. For example, if the card awarded 2% back on all purchases and you made a $100 purchase on the card, you’d earn $2 cash back.
Some cash-back credit cards offer a fixed amount rewarded back across all purchase categories, such as in the example above, while others award different percentages back in the form of rewards on various types of spending, such as dining or groceries.
Earned cash back is often awarded in the form of a statement credit. However, it may also be available for deposit into your bank account or via a check. In some cases, cash-like rewards can be cashed out for gift cards or other travel and merchandise items at a fixed rate similar to the value you’d get if you opted for a statement credit.
Cash back vs travel credit cards
The cash back vs points debate is a common credit card contention. Some credit cards reward you with airline miles, hotel points or flexible travel points that can be used in different ways to book that next trip. Sometimes, the points earned by those cards are worth a fixed value (1 cent per point, for example). In other cases, the value of the points may vary based on how you use them.
However, with cash-back credit cards, you are earning a cash equivalent reward. The benefit of this is that you can have more flexibility when it comes to using the rewards. The downside is that you likely won’t get an outsized return for your spending the way you would if you redeemed hotel points or airline miles.
How do cash-back credit cards work?
When you charge a purchase to your cash-back credit card, you earn rewards based on the percentage of cash back your card awards in that purchase category. You are then able to cash out your rewards via options such as a statement credit, a check, a deposit in your checking account, etc.
Types of cash-back credit cards
Cash-back credit cards are a great way to earn on your spending. Luckily, there are many types of cash-back credit cards which means there is a good fit for any wallet.
The simplest cash-back credit cards are the ones that earn the same percentage of cash back on all purchases. This flat rate is often 1.5% to 2% cash back on all purchases, though that amount occasionally goes higher with some credit cards, especially if you have a qualifying existing relationship with the issuing bank. At TPG, we recommend at least a 2% cash back credit card if you're looking for a cash-back card.
Many cash-back credit cards offer different amounts of cash back on various categories or purchases.
For example, a card may award:
- 1% back on everyday spending.
- 2% back at gas stations.
- 3% back on dining and at grocery stores.
This means that tiered cash-back cards often make it so you earn a little less on a broader everyday spending category than you would with some other cards, but you’ll earn a higher amount back in some targeted spending categories.
A few cash-back credit cards award a fixed amount of cash back for everyday spending but also offer as much as 5% cash back for bonus categories that alternate every quarter.
For example, the bonus categories in the first quarter of the year might be restaurants and streaming services before switching to grocery stores and Amazon purchases in the second quarter of the year. In some cases, you have to remember to activate the bonus categories each quarter in order to be eligible for the increased earnings. There is typically a cap on how much you can earn in cash back on those rotating categories per quarter.
There are some cash-back credit cards that put the cardholder in the driver seat and let them choose the categories that earn bonus cash back. With some of these cards, you make the selections yourself. One of the largest cash back credit card mistakes is not selecting the right category to earn the most on your spending. Others automatically give bonus cash back in the eligible category you spent the most in within a billing cycle.
While most cash-back credit cards are available to anyone who meets their approval requirements, a few deem it necessary to have a specific membership in order to be a cardholder. This may include having a membership to a warehouse store, a specific bank or credit union, or another entity.
Some stores will offer a co-branded store card with an elevated cash back rate. Choosing between a credit card or store card will mostly be dictated by your spending but we generally recommend a general cash back card over a co-branded store card.
Common cash-back bonus categories
Some cash-back cards offer an elevated earning rate on select spending categories. This is known as a bonus category and some common ones include:
- Restaurant dining
- Groceries
- Gas stations
- Entertainment and streaming
- Travel including rideshares, trains, buses and more
The best way to get the most out of your cash-back card is to look for one that offers bonus earnings on your most common spending category.
Ask our experts
What's your favorite cash-back card — and why?
Apply for Chase Freedom Unlimited®
Chase Freedom Unlimited®
Convert cash-back rewards into Chase points
"The Freedom Unlimited offers at least 1.5% cash-back on all purchases, but its power goes far beyond that earning rate. When you combine it with a higher-end Chase card, those cash-back rewards can effectively be converted into fully-transferable Ultimate Rewards points."
Brian KellyFounder and “The Points Guy”
Apply for Citi Double Cash® Card
Citi Double Cash® Card
Fantastic cash-back rate
"This cash-back card comes with no annual fee, unlimited 2% cash back on every purchase (1% when you buy, 1% when you pay) and a long introductory APR period on balance transfer, which is why the Citi Double Cash will always have a place in my wallet."
Christina LyCredit cards writer
Apply for Blue Cash Preferred® Card from American Express
Blue Cash Preferred® Card from American Express
Lucrative option for groceries
"The Blue Cash Preferred is the card I recommended to my parents when they were looking for a new cash-back rewards card for their groceries. 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%)."
Katie GenterSenior writer
Pros + cons of cash-back credit cards
Pros
- Using cash-back credit cards responsibly can help you build your credit score.
- Cash-back credit cards can help you save money on every dollar you spend.
- Cash-back credit cards can provide purchase, theft and fraud protection.
- Rewards from cash-back credit cards don’t require advanced knowledge to redeem.
Cons
- Cash-back credit cards can encourage overspending.
- Carrying a balance and using your cash-back card irresponsibly can damage your credit score.
- The cost of borrowing on cash-back credit cards is higher 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.
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 circ*mstances 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.
