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Best cash-back credit cards for October 2024
Cash-back credit cards are often designed to reward everyday spending. Our list includes the best credit cards with cash-back rewards that we believe can offer maximum savings on the purchases you make most often.
In this article
Best cash-back credit cards for October 2024
- Annual fee$0
- Welcome offerEarn a $200 statement credit after spending $2,000 within the first 6 months
- Ongoing Balance Transfer APR18.74%-29.74% Variable
- Introductory Purchases APR0% on purchases for 15 months
- Introductory Balance Transfer APR0% on balance transfers for 15 months
- Ongoing Purchases APR18.74%-29.74% Variable
- Rewards rate
- 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%)
- 3% cash back on U.S. online retail purchases (on up to $6,000 per year in purchases, then 1%)
- 3% cash back at U.S. gas stations (on up to $6,000 per year in purchases, then 1%)
- 1% cash back on all other purchases
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout
More details: After spending at least $9.99 on an eligible Disney Bundle subscription, get $7 back as a statement credit each month (up to $84 per year; with enrollment). Plus, earn up to $15 back each month when you sign up for an auto-renewing Home Chef subscription (up to $180; with enrollment; terms apply; see rates and fees).
Read our full review of the Blue Cash Everyday Card from Amex
Perks & benefits
- Multiple cash-back opportunities across many spending categories
- No annual fee
- 0% introductory APR for first 15 months
Potential drawbacks
- Cash back can only be redeemed on Amazon or as a statement credit
- Has annual earning caps on several spending categories
- Potentially high APR after intro period
Potential annual cash back: $406.38
Why this is the best cash-back credit card for gas stations
This card offers among the highest cash-back rates available on gas station spending, with a potential $180 back each year if you meet the spending cap. But we also love the versatility of the Blue Cash Everyday. It offers rewards at U.S. supermarkets, and you can earn 3% back on your online shopping — which may include everything from huge retail sites to small online shops by your favorite sellers. That’s not a common bonus category among other cash-back cards today, and it can offer some major savings for frequent online shoppers.
- Annual fee$0
- Welcome offerEarn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back
- Introductory Purchases APR0% Intro APR on Purchases for 15 months
- Ongoing Purchases APR20.49% - 29.24% Variable
- Introductory Balance Transfer APR0% Intro APR on Balance Transfers for 15 months
- Ongoing Balance Transfer APR20.49% - 29.24% Variable
- Rewards rate
- Enjoy 5% cash back on travel purchased through Chase Travel℠
- 3% cash back on drugstore purchases and dining at restaurants (includes takeout and eligible delivery service)
- 1.5% on all other purchases
- Annual fee$0 intro annual fee for the first year, then $95.
- Welcome offerEarn a $250 statement credit after spending $3,000 in eligible purchases in the first 6 months
- Introductory Purchases APR0% on purchases for 12 months
- Ongoing Purchases APR18.74%-29.74% Variable
- Introductory Balance Transfer APR0% on balance transfers for 12 months
- Ongoing Balance Transfer APR18.74%-29.74% Variable
- Rewards rate
- 6% cash back at U.S. supermarkets (on up to $6,000 in purchases annually, then earn 1%)
- 6% cash back on select U.S. streaming subscriptions
- 3% cash back on transit and U.S. gas stations
- 1% cash back on all 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
More card details: You can get $7 back per month in statement credits (up to $84 per year; with enrollment) when you spend at least $9.99 on an auto-renewing Disney Bundle subscription (valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S. (terms apply; see rates and fees).
Perks & benefits
- Multiple cash-back opportunities across many spending categories
- 0% intro APR for first 12 months
- Easy-to-earn welcome offer
Potential drawbacks
- Has an annual fee
- Cash back can only be redeemed as a statement credit on Amazon
- Has a spending cap of $6,000 on grocery earnings
Potential annual cash back: $513.33 (after accounting for annual fee)
Why this is the best cash-back credit card for groceries
You’ll be hard-pressed to find a credit card today that can beat the Blue Cash Preferred’s 6% back at U.S. supermarkets. Even with the $6,000 annual cap, that’s a potential $360 back on just your grocery bills each year.
Plus, this card is one of the top options for potential rewards value based on our spending calculations. We estimate you can earn more than $500 back each year even after accounting for the $95 annual fee (though it’s waived the first year).
Whether you do the monthly shopping for your family, have roommates, or just tend to eat and spend time at home often, you can get a ton of value from this card — as long as you can outpace the annual fee.
Read more: See our picks for the best American Express credit cards
- Annual fee$0
- Welcome offerEarn $200 cash back after spending $500 on purchases in the first 3 months
- Purchase APR19.99% - 29.99% variable
- Introductory APR0% intro APR on purchases and balance transfers for 15 months, then variable 19.99% - 29.99% APR
- Rewards rate
- 8% cash back on Capital One Entertainment purchases
- 5% cash back on hotels and rental cars booked through Capital One Travel
- 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart and Target)
- 1% cash back on all other purchases
More card details: The SavorOne card charges no foreign transaction fees, making it a good choice for trips abroad. Through Nov. 14, 2024, you can also earn 10% back on Uber and Uber Eats and get a monthly statement toward Uber One membership if you pay using your card.
Read our full review of the Capital One SavorOne Cash Rewards Credit Card
Perks & benefits
- Multiple cash-back opportunities across many spending categories
- No annual fee
- 0% introductory APR for first 15 months
Potential drawbacks
- Limits which grocery stores you can earn at
- Potentially high APR after intro period
- Requires good to excellent credit
Potential annual cash back: $447.38
Why this is the best cash-back credit card for restaurants
We like the SavorOne card for restaurants thanks to its 3% rewards rate — unmatched among most cash-back rewards credit cards for dining out. But it can be ideal for both nights out and nights in, with other bonus rewards on entertainment spending (including movie theaters and tourist attractions), grocery stores, and streaming subscriptions.
According to our calculations, the average consumer can get a total $447.38 in value with this card each year — one of the highest cash-back credit card returns with no annual fee. And if much of your spending is focused in the SavorOne’s top categories, you can potentially get rewarded even more for where you spend most.
- Annual fee$0
- Welcome offerNone
- Purchase APR29.99% variable
- Rewards rate
- 5% unlimited cash back on hotels and rental cars booked through Capital One Travel
- 1.5% unlimited cash back on every purchase, everywhere
More details: For this secured card, you’ll need to put down at least a $200 security deposit upon opening, which will act as your credit line. You’ll be automatically considered for a higher credit line after a minimum six months, and can earn your deposit back and potentially upgrade to the unsecured Capital One Quicksilver Cash Rewards Credit Card with responsible use over time.
Perks & benefits
- Higher-than-average cash-back rate on general spending
- Can help you build credit or improve your existing credit score
- No annual fee
Potential drawbacks
- As a secured card, it requires a security deposit
- Lower potential earnings than others on our list
- No welcome offer or introductory APR
Potential annual cash back: $344.88
Why this is the best cash-back credit card for building credit
If you’re trying to build your credit history or rebuild your score, you probably know how difficult it can be to qualify for cards with any rewards at all — which is why we like the Quicksilver Secured for cardholders looking to build credit while still earning cash rewards.
Not only can you get 1.5% back on every purchase from the start, but Capital One offers a clear path towards graduating to an unsecured version of the card and a higher credit line. If you show that you’re using your card responsibly, you can get valuable cash back and the credit score required to help you qualify for other cards.
Read our full review of the Capital One Quicksilver Secured Cash Rewards Credit Card
- Annual fee$0
- Welcome offerEarn $200 cash back after spending $1,500 on purchases in the first 6 months (bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back)
- Card type(s)Cash-back
- Purchase APR19.24% - 29.24% variable
- Introductory APR0% intro APR on balance transfers for the first 18 months (19.24% - 29.24% variable APR after that)
- Rewards rate
- 5% cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24
- 2% cash back on every purchase with unlimited 1% cash back when you buy
- Earn an additional 1% as you pay for your purchases (to earn cash back, pay at least the minimum due on time)
Perks & benefits
- No annual earning caps
- Higher-than-average cash-back rate on general spending
- 0% APR on balance transfers for 18 months
Potential drawbacks
- No 0% intro offer for new purchases
- Potentially high APR, after intro period
Potential annual cash back: $459.84
Why this is the best cash-back credit card for flat cash back
The Citi Double Cash takes our spot for the best flat cash-back card for several reasons. For one, it offers up to 2% cash back on every purchase — which is about as high as you’ll find flat cash-back rewards today. But we also like the structure of this card’s earnings, which encourages you to pay your balances in full and on time each month. You’ll only earn half of your 2% cash back when you make a purchase with your card. The other 1% requires you to pay off the purchase in full.
- Annual fee$0
- Welcome offerDiscover will automatically match all the cash back you’ve earned at the end of your first year, with no minimum spending requirement or maximum rewards cap
- Purchase APR18.24% - 28.24% variable
- Introductory APR0% intro APR on purchases and balance transfers for the first 15 months (18.24% to 28.24% variable APR after that; 3% intro balance transfer fee until until Dec. 10, 2024, then up to 5%)
- Rewards rate
- 5% cash back on everyday purchases at different places each quarter — including grocery stores, restaurants, gas stations, and more — up to the quarterly maximum
- 1% unlimited cash back on all other purchases
More details: It’s important to keep track of bonus categories each quarter to make sure you take advantage of your rotating 5% cash back. Discover doesn’t announce its full annual calendar in advance; categories are typically released the month prior to the start of a new quarter. It also pays to activate early. If you wait until the quarter’s already started, you’ll only earn 5% for qualifying purchases made after you activate.
Perks & benefits
- Unlimited cash-back match for first 12 months
- 0% APR for 15 months
- Free credit monitoring alerts
Potential drawbacks
- Higher cash-back rate is limited to certain rotating categories, so it may be unpredictable
- Rotating rewards categories require manual activation
- Potentially high APR after intro period
Potential annual cash back: $446.32 (based on 2023 categories)
Why this is the best cash-back credit card welcome bonus
The Discover it Cash Back card’s welcome bonus is unique among cash-back cards today — and can potentially be worth much more than other offers. Instead of a specific dollar amount, Discover will make an unlimited cash-back match of all the rewards you earn over your first year. So if you earn the potential $446.32 we predict based on average American spending, you could double that to a total of $892.60 cash back in your first year.
Like with any new card, just remember not to spend more than you can afford just to get a bigger welcome bonus. If you carry a balance and take on the card’s high APR, you could end up paying much more than you get in return.
- Annual fee$0 for the first year, then $95
- Welcome offerEarn a $250 bonus after spending $2,000 within the first 120 days
- Purchase APR19.74% - 29.74% variable
- Rewards rate
- 6% cash back on the first $1,500 in combined purchases each quarter with two retailers of your choice
- 5.5% cash back on hotel and car reservations booked directly in the Rewards Travel Center
- 3% cash back on the first $1,500 in purchases each quarter on one everyday category of your choice (like wholesale clubs, gas and EV charging stations, bills and utilities)
- 1.5% cash back on all other purchases
Perks & benefits
- Annual fee waived for the first year
- Higher-than-average cash-back rate on general spending
Potential drawbacks
- Quarterly earning caps
- No 0% intro APR
Potential annual cash back: $553.32 (after annual fee; assuming groceries bought at retailers included in 6% category)
Why this is the best cash-back credit card for customization
If you use the Shopper Cash Rewards card from U.S. Bank wisely, it has the potential to offer the most value of any cash-back credit cards on our list — but you’ll also need to put in some extra work to maximize this card.
Based on average spending data, we assume that most people spend the greatest amount each month on groceries, for example. With this card, you can earn as much as 6% back on groceries if you buy them at Target or Walmart each month (two retailers typically excluded from supermarket rewards categories).
But the benefit of customizable rewards is that you can switch things up when necessary. Maybe you’re planning a home improvement project and want to purchase new appliances from Home Depot or Lowe’s — you can change one of your choice 6% retailers for the quarter to maximize your current spending.
Plus, after you max out the 6% and 3% quarterly spending caps, this card offers even more as a flat cash-back card, with a minimum 1.5% cash back on every purchase.
- Annual fee$0
- Welcome offerEarn a $150 bonus after you spend $500 on purchases in the first 3 months
- Purchase APR20.49% - 29.24% variable
- Introductory APR0% intro APR on purchases and balance transfers for the first 15 months, after which the standard APR applies
- Rewards rate
- 5% cash back on up to $1,500 on combined purchases in bonus categories each quarter you activate
- 5% cash back on travel purchased through Chase Travel℠
- 3% on dining, including takeout and drug stores
- 1% on all other purchases
More details: In addition to its variety of cash-back categories, Chase Freedom Flex can help you earn 5% back on Lyft rides through March 2025. Plus, get three free months of DoorDash’s DashPass membership (automatic enrollment at 50% off for the next nine months after that; activate by Jan. 30, 2025) and get up to $10 off each quarter on non-restaurant DoorDash orders.
Learn more: Chase Freedom Unlimited® vs. Chase Freedom Flex
Perks & benefits
- Multiple cash-back opportunities across many spending categories
- 0% introductory APR for first 15 months
- Can transfer points between other Chase credit cards
Potential drawbacks
- Higher cash-back rate limited to certain spending categories
- Limits which grocery stores you can earn at
- Potentially high APR after intro period
Potential annual cash back: $402.22 (based on 2023 categories)
Why this is the best cash-back credit card for rotating rewards
The Chase Freedom Flex offers a wide range of rotating categories each quarter. Over the past year, these have ranged from specific retailers like Target and Amazon to broader everyday spending like wholesale clubs, fitness clubs and gym memberships, and more. We also like this card for its ongoing cash-back rates on dining, at drugstores, and on Chase Travel purchases.
Plus, it makes a smart pairing for cardholders who have other Chase cards in their wallets. You can transfer the rewards you earn as points to either of the Chase Sapphire cards and earn their boosted rewards rates when you redeem for travel. If you’re already using a Chase travel credit card, the Freedom Flex can help expand your rewards categories and let you rack up points even faster.
All information about Chase Freedom Flex has been collected independently by Yahoo Finance. Chase Freedom Flex is no longer available through Yahoo Finance.
More cash-back cards to consider
The Wells Fargo Active Cash Card is another 2% flat cash-back card that can make a great option for a wide range of cardholders. This card has no annual fee, and a welcome offer of $200 after you spend $500 within the first three months. There’s also an introductory 0% APR for 12 months on purchases and balance transfers (with a 20.24%, 25.24%, or 29.99% variable APR thereafter).
There are few other ongoing rewards or benefits, but 2% cash back alone is at the high end of flat cash-back rewards you’ll find among any card today.
For the most part, we didn’t include co-branded cash-back cards on this list — but this card is an exceptionally versatile version of a retail card. For frequent Amazon shoppers, the Prime Visa card can offer many savings and cash back in other everyday categories. There’s no annual fee, but you need a Prime membership ($14.99 per month or $139 per year). Here are the rewards categories:
5% cash back at Amazon.com, Amazon Fresh, Whole Foods Market, and on Chase Travel™ purchases with an eligible Prime membership
2% cash back at gas stations, restaurants, and on local transit and commuting (including rideshare)
1% cash back on all other spending
After you sign up, you can get an instant $150 Amazon gift card. Throughout the year, you’ll also earn a boosted 10% back on select products and categories when you shop with Amazon.
If you’re considering a co-branded cash-back credit card and want a similar amount of flexibility as the Prime Visa, here are a few more options we like:
Read our full review of the Prime Visa card
Types of cash-back credit cards
Today’s cash-back credit cards tend to fall in one of three categories. You can look at your own spending habits to find the type of cash-back credit card best fit for you.
Flat cash back
Flat cash-back cards have a fixed earning rate, so you’ll get a standard amount of cash back on everything. There’s no need to keep track of bonus categories or percentages, because you’ll get the exact same amount back no matter what type of purchase you make.
Flat cash-back cards usually offer 1.5% or 2% cash back on every purchase.
A flat-rate credit card with cash back on everything may be best for someone who doesn’t have a single top spending category each month or is looking for an easy way to earn rewards without putting too much thought into maximization.
Tiered cash back
Tiered cash-back cards may be what you imagine when you think of a cash-back credit card. These cards earn cash back at different rates across different spending categories. Typically, you’ll see a tiered cash-back card with 2-3 eligible bonus categories that earn anywhere from 2%-6% cash back.
Some tiered cash-back cards — especially those with very high 5%-6% bonus categories — have spending caps for top earnings (monthly, quarterly, or annually). For example, you might earn 5% bonus cash back on dining, but only on the first $1,500 you spend at restaurants each quarter. After you meet the cap, you’ll earn 1% in that category until the cycle renews.
If you’re looking for a tiered cash-back card, make sure you choose a card with top rewards where you spend most to get the best return.
Rotating cash back
Rotating cash-back cards are unique among rewards credit cards, since your top bonus rewards categories are constantly changing. These cards generally earn 5% cash back each quarter in specific rotating categories, up to certain limits.
Rotating categories can differ year-to-year, but they tend to center around everyday spending. You may, for instance, see categories like groceries, gas, and dining, as well as specific retailers like Target, Walmart, and Amazon. These cards often have 2-3 eligible categories per quarter.
The rewards caps are important to remember with this type of card. If you spend much more than the quarterly cap (often around $1,500), you may not get the best value for your spending. You’ll also need to keep up with and activate the new categories each time they roll around.
Read more: Chase Freedom bonus categories
How to choose a cash-back card
There are plenty of good cash-back credit cards available today. Find the right fit for you by comparing the details below to your goals, budget, and what you’re looking for in your new card.
Annual fee
Many cash-back cards charge no annual fee. However, you may be more likely to find the highest cash back rates if you are willing to pay an annual fee for your card.
Whether an annual fee is worth it depends on your individual spending and the value you’ll get out of your rewards. When we calculated average cash rewards earnings, all the cards with annual fees far outpaced their annual fees in rewards value. But if you don’t spend as much as the average across bonus categories like groceries, restaurants, and gas stations, that may not be true for you.
Luckily, many top cash-back cards charge no annual fee at all — making it easy to find one that works with any budget.
Welcome offer
Cash-back credit cards often offer cash sign-up bonuses after you meet a spending threshold within a certain amount of time after opening your account.
You'll most frequently see cash rewards bonuses for $150 or $200 after spending a minimum of $500 to $2,000 on your card within three to six months of account opening. Like with any new card, avoid spending more than you usually would just to meet the bonus threshold. The potential interest charges from carrying a balance could quickly eliminate any added value.
In addition to cash welcome offers, many cash-back cards also have 0% introductory APR offers on new purchases. You’ll take on 0% interest on purchases you make with your card for around 6 to 18 months, after which any remaining balance will earn interest at your ongoing variable APR.
Some cash-back cards also have 0% APR offers for balance transfers, which can help you pay down any existing credit card debt (just make sure you know the terms of the offer, including any balance transfer fees, before you sign up).
Cash-back rewards categories
Perhaps the most important thing to factor into your cash-back card choice is the categories in which you’ll earn rewards. Here are a few common bonus categories offered today:
Dining
Groceries
Gas stations
Streaming services/subscriptions
Wholesale clubs
Utilities
Review your receipts and statements from the past several months to get an idea of where you spend most. Do you tend to eat at restaurants or order takeout most nights or do you stick to a weekly grocery shop for most of your meals? Do you have a car that takes a lot of miles on for your weekly commute? Or do you rely more on public transportation, supplemented by Uber and Lyft rides?
The details of your own spending habits can help you choose the best credit card with cash-back rewards. Don’t forget about flat cash-back cards and cards with rotating categories. These can sometimes be among the most lucrative options, especially if your spending falls outside common categories.
Benefits and more
You won’t find as many added benefits and perks from cash-back cards as you will on travel and rewards credit cards. But some cash-back options do offer extra benefits that can help you save even more throughout the year.
Often, cash-back credit card benefits come from brands that partner with credit card issuers. For example, you may get a small monthly credit toward a subscription or membership. Alternatively, you might be eligible for a few months’ trial membership for a service.
If you don’t already use the services these benefits help subsidize, it could cost you more money over time. But if you are already a member or subscriber, they may give you an extra savings boost over time.
How to make the most of cash back
Here are a few things to consider while you earn and redeem cash-back rewards:
Track your rewards
Make sure you keep regular track of the cash rewards you earn. While they probably won’t expire (unless you close your account), you don’t want to let them sit unused for too long, either.
Consider redeeming your cash back every few months, unless you’re saving for a big redemption. If your rewards are simply sitting in your account unused, you’re not gaining any value from them. Unlike a savings account, for example, they don’t earn any interest — so you could even lose potential value if you account for inflation.
Some issuers have thresholds (like a $25 minimum) you must meet before you can redeem. You may also be able to set up automatic redemptions once you meet a certain amount of rewards earned.
Combine with other cards
Cash-back cards can be ideal for pairing with other cash-back cards or travel rewards cards to maximize your earnings.
For example, say you already have a travel card you use to earn bonus points on flights, hotels, and rental cars when you travel. You can also open a cash-back card for savings on dining at restaurants, your favorite streaming services, and supermarket shopping. Now, between both cards, you can optimize the majority of your spending while traveling and at home.
If you prefer the simplicity of only cash back, you could do something similar with two cash-back cards. For instance, maybe you already have a cash-back card that earns top rewards at supermarkets and gas stations, but you only get 1% back elsewhere. A flat cash-back card that earns 2% on every purchase could be a good option to help increase your baseline rewards every time you swipe beyond the supermarket or gas station.
Strategizing card use like this can take some time, but it will help you earn a lot higher cash-back value in the long run.
Just remember to pay your balance off in full and on time each month to get your maximum value. Otherwise, the high interest rates these cards carry could wipe out the amount you earn in rewards — and leave you with mounting debt balances.
Read more about our top rewards credit cards for 2024.
Pros and cons of cash-back credit cards
Pros
Among different types of reward cards, cash-back credit cards can be some of the simplest to use. You don’t have to worry about converting points to currency or maximizing redemptions. Instead, you can simply redeem the cash back you earn for statement credits, a deposit into your bank account, or a check.
Cash-back cards are also perfect for saving on everyday purchases. If you don’t travel much, you may find many rewards cards don’t offer a lot of value for you. But cash-back cards tend to reward purchases in essential categories for many Americans: gas, groceries, streaming services, and more.
Despite their simplicity, cash-back cards can also be powerful tools. You can get hundreds of dollars in value each year just by spending the amount normally within your budget on a cash-back card. And the extra features — such as an intro 0% APR on new purchases or balance transfers, purchase protections, and more — can offer a lot of benefits and protections to help make the most of your spending.
Cons
Cash-back cards may hold a lot of value, but that doesn’t mean they’re for everyone. Like any type of rewards credit card, you shouldn’t opt for a cash-back card if you’re going to carry a balance. These cards can charge very high variable APRs, and any revolving balance on your account can quickly turn into high-interest debt. If you want to get any return on your spending with cash back, avoid taking on debt with your card.
In some cases, there may be better options than cash-back cards for your spending. Spending caps for rewards earnings can hinder some people with very large monthly budgets, for example. Plus, the value you get for your rewards can sometimes increase when you opt for a rewards program with multiple redemption options. And for frequent travelers who spend a lot of time on the go, cash-back cards don’t offer nearly as many perks as some travel rewards cards. Travel cards may also have higher returns in different rewards categories that could better suit your budget, like airfare, hotel stays, car rentals, and more.
Before you choose, compare your individual spending and budget to multiple card options to find the best one for you.
Should you open a cash-back credit card?
As long as you pay your balance in full and on time each month, we believe a cash-back card can play an important role for nearly every shopper — whether you’re looking to supplement the other cards in your wallet, maximize your everyday spending, or begin building credit.
Just make sure you take the time to find the right cash-back option for you. To maximize your purchases without adding to your budget, choose a credit card with rewards where you already spend. Between flat, rotating, and tiered cash rewards (and cards that offer any combination of the three), there are plenty of options that will fit your top spending categories.
Cash-back credit card frequently asked questions (FAQs)
What credit score do you need for a cash-back credit card?
Many cash-back cards require good to excellent credit, or a FICO Score of at least 670, for approval. If you don’t already have good credit, you may want to consider a cash-back credit card designed for cardholders who are building credit, though they may not offer as robust rewards as others.
Before you apply, consider seeing whether you’re pre-approved for a card, so you don’t undergo a hard credit inquiry only to not get approved.
How do cash-back cards work?
Cash-back credit cards work like any other credit card. What’s unique about them is the potential to earn cash rewards. When you charge a purchase to your cash-back card, you’ll receive a percentage of each purchase back. As those amounts add up, you can redeem them for statement credits toward your card balance, a direct deposit into a bank account, a check, gift cards, etc. You can get boosted cash back percentages on specific purchases depending on the card you have.
Cash-back cards offer a simpler rewards structure than some other points-and-miles rewards programs, which make them popular among cardholders who want to maximize their spending without too much extra work.
How do I get the best cash-back rewards?
The best cash-back rewards for you will depend on your spending habits and how you use your cash-back credit card. If the majority of your budget is focused in a few different categories (buying groceries, filling up your car’s gas tank), you’ll probably get the best value from a card with higher earnings in those categories. On the other hand, if you don’t want to worry about categories, you may find a flat cash-back card that earns 1.5% or 2% back on every purchase will be a much better value for you.
Before you apply for a cash-back card, look at your overall spending and budget — and get realistic about how much you’re willing to do to maximize different spending categories.
Does cash back expire?
In many cases, the cash back you earn does not expire until your account is closed. However, individual issuers may have different standards for how long your cash back lasts. Always make sure to read your card agreement for expiration dates and other details that may apply for your cash-back card.
What doesn’t count toward cash back?
Most cash-back cards offer at least 1% back on every purchase — but there are some transactions that may not qualify. For example, issuers often exclude lottery ticket or gambling chip purchases from earning cash back, as well as items you return or unauthorized spending. You also won’t earn cash back for balance transfers, cash advances, and other types of non-purchase transactions.
You can find the full list of what counts toward your cash-back earnings and what doesn’t qualify within your card’s rewards agreement.
Which credit card gives the most cash back?
The credit card that gives you the most cash back will depend on where you do most of your spending. The highest cash-back rewards rates today can reach 5% or 6% cash back in specific categories. But if those categories don’t match your most frequent purchases, they won’t give you a very high cash-back return. You might, instead, get the most cash back from a flat cash-back card that earns a lower 1.5%-2% cash back on every purchase.
To find the most rewarding cash back option for you, always compare a card’s rewards categories and earning structure to your own spending.
What is the best cash-back credit card for gas?
There are some great cash-back credit cards today with high rewards rates at gas stations. With some of these cards, you can get upwards of 3% or potentially even more back when you fill up your gas tank, even from cards with no annual fee.
These are a few credit cards we like with high cash-back rewards rates for gas stations:
Citi Custom Cash® Card
Wells Fargo Autograph℠ Card
Read more about all of our top picks for earning credit card rewards at gas stations.
Which credit card has the best cash back on everything?
If you’re looking for the credit card with the most cash back on everything, you’ll want to look for a flat-rate cash-back card. Today, these cards typically max out at 2% cash back on every purchase, and some offer 1.5% cash back on every purchase.
While you might earn a lower rate on some purchases than cards with up to 5% or 6% back in specific categories, you could ultimately come out ahead if your most frequent spending doesn’t fit into typical cash-back rewards categories.
Here are a few cards that earn flat cash back on every purchase:
Wells Fargo Active Cash® Card
How do you get 5% cash back on everything?
Plenty of cash-back cards do have 5% rewards (whether in specific bonus categories or rotating quarterly categories), but you’re not likely to find a card with flat 5% cash back on every purchase. To earn 5% cash back across several of your top spending categories, consider combining more than one cash-back credit card into your rewards strategy.
Are cash-back credit cards worth it?
Cash-back credit cards are often worth it if you’re looking for a simpler rewards credit card option that can still help you save money. Many have no annual fee — and even those that do have fees tend to charge no more than $100 — meaning more of your rewards earnings can go straight toward maximizing your spending. Plus, you can enjoy all the other benefits of rewards credit cards, like annual discounts and credits, purchase protections, fraud prevention, and more.
Cash-back credit cards are probably not worth it if you carry a balance, since the interest charges you’ll take on at these cards’ high APRs can quickly outpace the rewards value. Make sure you spend only what you can afford and pay your balance off every monthly billing cycle to get the most out of your cash-back credit card.
Methodology
Our list of the best cash-back cards is designed to highlight the best overall cards with cash rewards as well as those with the most potential return on your spending.
We began by calculating average annual rewards for more than three dozen cash-back credit cards. This included every card from major issuers that earn cash back, as well as student and secured options with cash rewards. Retail cards and co-branded card options were excluded to keep this list focused on general cash-back earnings.
To determine average annual rewards, we used the most recent Consumer Expenditure data from the Bureau of Labor Statistics to get an idea of the amount Americans spend each year. We excluded housing, vehicle purchases, healthcare, cash contributions, personal insurance, and pension spending from the total, since these purchases don’t typically apply to credit card spending. That left us with a total average annual expenditure of $22,992 per year, or $1,916 per month.
From there, we broke out several categories and calculated how much the average spender could earn with each card. All non-category spending earned 1% cash back.
The cash-back totals we found were also integrated into the overall criteria we used to give each cash-back card a rating and determine the final picks on our list. In addition to total cash back value, we factored for the cards’ annual fees, rewards structures, 0% intro APR offers, ongoing APRs, any added benefits, and more — in addition to standard factors among all of our best cards ratings, like issuer transparency, mobile app use, credit score access, and others.
Our final best cash-back picks represent the top rated from this list, as well as the cards with the maximum cash-back value according to spending averages.
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