All you need to know about cashback credit cards
Cashback credit cards are a useful tool to get paid back for the things you buy every day. Cashback is typically easy to understand and redeem, which is great for on-the-go folks who like to keep it simple. Cashback is also the most flexible form of reward, allowing you to spend your earnings however you’d like.
Other cashback cards offer a higher rewards rate on specific purchase categories like dining or groceries. usually between 1% and 2%, some cards offer a flat cashback rate on all purchases.
According to a recent survey by Bankrate, It’s clear that Americans love cashback .it can be tough to decide which cashback card is going to give you the most value, With so many credit card offers on the market. so we lay out the pros and cons for you all in one place Choosing a credit card is an important financial decision.
Best Cash Back Credit Cards
The best for flexible cash back categories is the Bank of America® Customized Cash Rewards credit card your summer budget may skew more heavily toward gas or travel You might do a lot of online shopping during the holiday months as spending is cyclical For most people.
You have the freedom to change your bonus category once per calendar month With the Bank of America® Customized Cash Rewards credit card, allowing you to tailor your rewards to your spending habits. especially since there’s no annual fee.
Best for U.S. supermarkets is Blue Cash Preferred® Card from American Express
This is a fantastic option for those who prefer their dinner-and-a-movie at home, for purchases at U.S. supermarkets as well as 6% back on select U.S. streaming services, % for up to $6,000 each year, then 1% Offering supreme cashback rates.
A tad steep, but consider the high rewards rates, Some may find its annual fee of $95 waived for the first year. Along with up to 20% back on Amazon.com purchases within the first 6 months, in the first 6 months of card membership Plus, the introductory offer of a $150 statement credit after you spend $3,000.
The best for introductory APR on purchases is Chase Freedom Unlimited®
You can earn $200 after spending $500 on purchases within the first 3 months of opening an account As a welcome bonus. including 5% cashback on travel purchased through Chase Ultimate Rewards, plus boosted rewards in practical everyday categories, You’ll earn a standard 1.5% on all purchases as It’s safe to say you have plenty of opportunities to earn cashback with Chase Freedom Unlimited.
The best for unlimited rewards is Capital One Quicksilver Cash Rewards Credit Card
1% when you buy and 1% as you pay off the purchase, earns higher flat-rate cash back at 2%. Note that the Citi Double Cash, While unlimited rewards are an attractive offer as Rewards are valid for the life of the account.
The best for rotating categories is Discover it® Cash Back
Then a flat-rate cash-back card like the Citi® Double Cash Card may be a better option for you if you anticipate spending far more than the $1,500 quarterly limit as you’ll have the opportunity to earn a generous 5% cashback bonus every day.
The best for flat-rate cashback is Citi® Double Cash Card
So you need to remember to use the card every so often if you don’t want your rewards to go to waste, the rewards will expire if the card isn’t used in more than 12 months.
The lack of a sign-up bonus does detract from some of this card’s appeal, While the long-term value is great. the Citi Double Cash boasts one of the most competitive rewards rates of all cashback cards as then an additional 1% cashback as you pay off those purchases, excluding gift cards Offering 1% on general purchases.
Best for dining and entertainment is Capital One SavorOne Cash Rewards Credit Card
Which offers 3% cashback on dining as well as rewards on several other everyday categories, You might also consider the Chase Freedom Flex. within the first 3 months of opening an account, Earn a $200 welcome bonus after spending $500 on purchases. you earn 3% cashback on popular streaming services and 1% cashback on all other purchases.
Excluding Walmart® and Target, you’ll also earn 3% cash back at grocery stores, even when you feel like eating in as Foodies will like the SavorOne for its generous 3% cashback on dining and entertainment purchases.
Jasper Cash Back Mastercard®: Best for a referral bonus
People who don’t want to work so hard for bonus rewards might want to consider a flat-rate cash-back card instead, your earnings will be limited and the cashback program can be confusing, particularly for credit card newbies.
If you can’t successfully refer friends, The card carries no annual fee as Your promotional cashback rate lasts for a full year. You earn 0.5% cash back for each friend you successfully refer, you can get 3% cashback by referring two friends at 1% each. but can earn up to a whopping 6% cashback by successfully referring friends as Jasper Cash Back Mastercard cardholders start by earning 1% cashback on purchases.
Best for cashback on eligible travel is Chase Freedom Flex℠
3% cashback on drugstore purchases and dining at restaurants, up to $1,500 per quarter with quarterly activation required. You can also earn 5% cashback on eligible purchases in rotating categories.
Requires some attention and may not be ideal for everyone, along with remembering to enroll in the 5% bonus category each quarter, you might want to look for a different cashback card If the idea of keeping track of all of the cashback categories and the rules that come with each makes your head spin
The best for tiered cashback is Blue Cash Everyday® Card from American Express
The yearly $6,000 limit on the 3% purchase category could cut into your potential earnings. On the flip side, there’s no annual fee. 2% at U.S. gas stations and at select U.S. department stores and then 1% on general purchases, up to $6,000 in purchases annually, then 1%), This card offers 3% cashback at U.S. supermarkets, which is why it’s a great addition to nearly anyone’s wallet as The Blue Cash every day is all about rewarding essential purchases.
The best for cell phone protection is the Wells Fargo Cash Wise Visa® card
There are cards that offer more cash back in select spending categories and a few cards with a higher sign-up bonus. subject to a $25 deductible you’ll receive up to $600 worth of cell phone protection against covered damage and theft. a decent sign-up bonus, unlimited 1.5% cash rewards on general purchases as The Wells Fargo Cash Wise Visa has all the key components of a good flat-rate cash back card.
Best for students is Discover it® Student Cash Back
There’s plenty of incentive, making the most of those rotating categories may take some time, For students brand new to credit, up to $300 a year on the 5% offer.
activation required each quarter and $1,500 limit each quarter, earn 5% cashback on rotating categories, In addition. there’s no annual fee and no foreign transaction fee, match your earnings to get up to $600 At the end of your first year.
Some people may prefer the simplicity of a cash-back rewards card Because reward points often come with a lot of restrictions in terms of how they can be redeemed Cashback essentially works like a rebate.
Cashback credit cards give a particular dollar amount of each eligible purchase back to the cardholder, which offers redeemable points or miles on purchases as Cashback credit cards are a type of reward credit card. Unlike other rewards credit cards. gift cards and checks are also common redemption options Direct deposits to your bank account.
Which will lower your credit card balance, Most cards allow you to redeem your cash back as a statement credit, you’ll probably have several options When you redeem your cashback.
Types of cashback credit cards each with its own benefits Nearly every cashback card on the market falls into one of three categories.
Usually between 1% and 2%, on every purchase, With a flat-rate card, you’ll earn a set amount of cashback Flat-rate cash back cards are probably the simplest type of rewards card you can get.
Simply set and forget until you want to redeem your rewards, this type of cashback card is great for first-time cardholders and those who want to use just one credit card for the majority of their expenses Since there’s no need to strategize spending.
Others are Tiered categories like gas or groceries A cashback card with tiered categories is a great choice if you have regular expenses within particular categories. , you get the best of both worlds and you never have to settle for a low rate of cashback That way.
Rotating or customizable bonus category – like holiday purchases or a summer road trip, year, which can help you make the most of seasonal expenses, Rotating categories often correspond with the time of. The main difference being that the categories change, usually each quarter This type of cashback card is very similar to a tiered category card.