Cash back credit cards are a fantastic way to earn money back on your everyday spending. They offer a simple and straightforward way to reduce your expenses, making them a popular choice for consumers. This guide will help you navigate the world of cash back credit cards, highlighting the best options available in 2024 and providing you with the information you need to choose the card that best suits your needs.
Comprehensive Cash Back Credit Card Comparison Table
| Credit Card | Key Features | Rewards Structure |
|---|---|---|
| Chase Freedom Unlimited | No annual fee, Intro APR offer, Purchase protection, Travel and emergency assistance, Trip cancellation insurance, Extended warranty protection, Free credit score monitoring, Fraud liability protection. | 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining and drugstores, 1.5% cash back on all other purchases. |
| Blue Cash Preferred Card from American Express | Annual fee (waived first year sometimes), Intro APR offer, Purchase protection, Return protection, Car rental loss and damage insurance, Global Assist Hotline, Extended warranty, ShopRunner membership. | 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and at transit, 1% cash back on other purchases. |
| Capital One Quicksilver Cash Rewards Credit Card | No annual fee, Intro APR offer, Travel accident insurance, Auto rental collision damage waiver, 24-hour travel assistance services, Extended warranty, Purchase Security. | 1.5% cash back on all purchases. |
| Discover it Cash Back | No annual fee, Cashback Match (dollar-for-dollar match of all cash back earned at the end of the first year), Freeze it (ability to freeze your card), Free FICO score, $0 fraud liability. | 5% cash back in rotating categories each quarter (up to a quarterly maximum, then 1%), 1% cash back on all other purchases. |
| Citi Double Cash Card | No annual fee, 2% cash back on all purchases (1% when you buy, 1% when you pay), Citi Entertainment, Citi Identity Theft Solutions, Fraud Early Warning. | 2% cash back on all purchases (1% when you buy, 1% when you pay). |
| Amazon Prime Rewards Visa Signature Card | No annual fee (with Amazon Prime membership), Travel and purchase coverage, No foreign transaction fees, Emergency card replacement, Lost luggage reimbursement. | 5% cash back at Amazon.com and Whole Foods Market (with Amazon Prime membership), 2% cash back at restaurants and gas stations, 1% cash back on all other purchases. |
| U.S. Bank Cash+® Visa Signature® Card | No annual fee, Choose your bonus categories, Travel and purchase protection, Visa Signature benefits. | 5% cash back on two categories you choose each quarter (on up to $2,000 in combined purchases, then 1%), 2% cash back on one everyday category (gas stations, grocery stores, or restaurants), 1% cash back on all other eligible purchases. |
| Wells Fargo Active Cash® Card | No annual fee, Intro APR offer, Cell phone protection, Zero liability protection, Overdraft protection (if linked to a Wells Fargo checking account). | 2% cash back on purchases. |
| American Express Cash Magnet® Card | No annual fee, Intro APR offer, Purchase protection, Car rental loss and damage insurance, Global Assist Hotline, Extended warranty, ShopRunner membership. | 1.5% cash back on all purchases. |
| Bank of America® Customized Cash Rewards credit card | No annual fee, Online and mobile banking, Choose your category, Overdraft protection (if linked to a Bank of America checking account). | 3% cash back in a category of your choice (on up to $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1%), 2% cash back at grocery stores and wholesale clubs (on up to $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1%), 1% cash back on all other purchases. |
Detailed Explanations
Chase Freedom Unlimited
The Chase Freedom Unlimited card is an excellent option for those seeking a simple and rewarding cash back experience with no annual fee. It offers a solid rewards structure across various spending categories, making it versatile for everyday use. The intro APR offer can also be beneficial for those looking to transfer balances or finance purchases.
- Rewards Structure: Earn 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining and drugstores, and 1.5% cash back on all other purchases. This tiered system allows you to maximize your rewards based on your spending habits.
- Additional Benefits: Includes purchase protection, travel and emergency assistance, trip cancellation insurance, extended warranty protection, free credit score monitoring, and fraud liability protection. These benefits provide added security and peace of mind.
Blue Cash Preferred Card from American Express
The Blue Cash Preferred Card from American Express is a top choice for families and individuals who spend a significant amount at U.S. supermarkets and on streaming services. While it has an annual fee, the high cash back rates can easily outweigh the cost for many users.
- Rewards Structure: Receive 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and at transit, and 1% cash back on other purchases. This card is ideal for those with high grocery and streaming expenses.
- Additional Benefits: Offers purchase protection, return protection, car rental loss and damage insurance, Global Assist Hotline, extended warranty, and a ShopRunner membership. These perks add value and convenience.
Capital One Quicksilver Cash Rewards Credit Card
The Capital One Quicksilver Cash Rewards Credit Card stands out for its simplicity, offering a flat cash back rate on all purchases with no annual fee. This makes it a great option for those who prefer a straightforward rewards program without the hassle of tracking spending categories.
- Rewards Structure: Earn 1.5% cash back on all purchases, regardless of the category. This is a consistent and easy-to-understand rewards system.
- Additional Benefits: Includes travel accident insurance, auto rental collision damage waiver, 24-hour travel assistance services, extended warranty, and purchase security. These features offer added protection and convenience.
Discover it Cash Back
The Discover it Cash Back card is known for its rotating 5% cash back categories and the unique Cashback Match feature, which doubles all the cash back you earn in your first year. This can be a highly rewarding card, especially for new cardholders.
- Rewards Structure: Get 5% cash back in rotating categories each quarter (up to a quarterly maximum, then 1%), and 1% cash back on all other purchases. The rotating categories require some planning to maximize rewards.
- Additional Benefits: Offers the Cashback Match, Freeze it (ability to freeze your card), free FICO score, and $0 fraud liability. These features provide extra value and security.
Citi Double Cash Card
The Citi Double Cash Card provides a straightforward 2% cash back on all purchases, making it a popular choice for those who want a simple and rewarding card with no annual fee. The unique structure of earning 1% when you buy and 1% when you pay encourages responsible credit card usage.
- Rewards Structure: Earn 2% cash back on all purchases (1% when you buy, 1% when you pay). This simple and consistent rewards system is appealing to many users.
- Additional Benefits: Includes Citi Entertainment, Citi Identity Theft Solutions, and Fraud Early Warning. These features offer added convenience and security.
Amazon Prime Rewards Visa Signature Card
The Amazon Prime Rewards Visa Signature Card is a must-have for Amazon Prime members who frequently shop on Amazon.com and at Whole Foods Market. The high cash back rate on these purchases can lead to significant savings.
- Rewards Structure: Receive 5% cash back at Amazon.com and Whole Foods Market (with Amazon Prime membership), 2% cash back at restaurants and gas stations, and 1% cash back on all other purchases. This card is tailored for Amazon Prime users.
- Additional Benefits: Offers travel and purchase coverage, no foreign transaction fees, emergency card replacement, and lost luggage reimbursement. These perks add value for travelers.
U.S. Bank Cash+® Visa Signature® Card
The U.S. Bank Cash+® Visa Signature® Card stands out for its customizable cash back categories, allowing users to choose the categories where they earn the highest rewards. This flexibility makes it a great option for those who want to tailor their rewards to their specific spending habits.
- Rewards Structure: Get 5% cash back on two categories you choose each quarter (on up to $2,000 in combined purchases, then 1%), 2% cash back on one everyday category (gas stations, grocery stores, or restaurants), and 1% cash back on all other eligible purchases. This customizable structure allows for maximizing rewards based on individual spending.
- Additional Benefits: Includes travel and purchase protection, and Visa Signature benefits. These features offer added security and value.
Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card offers a simple and straightforward 2% cash back on all purchases with no annual fee. It's a great option for those who want a consistent rewards rate without having to worry about rotating categories or spending limits.
- Rewards Structure: Earn 2% cash back on purchases. This is a very simple and easy-to-understand rewards system.
- Additional Benefits: Includes cell phone protection, zero liability protection, and overdraft protection (if linked to a Wells Fargo checking account). These features add value and convenience.
American Express Cash Magnet® Card
The American Express Cash Magnet® Card provides a flat 1.5% cash back on all purchases with no annual fee. It's a solid choice for those seeking a straightforward rewards program from a reputable issuer.
- Rewards Structure: Earn 1.5% cash back on all purchases. This is a consistent and easy-to-understand rewards system.
- Additional Benefits: Offers purchase protection, car rental loss and damage insurance, Global Assist Hotline, extended warranty, and a ShopRunner membership. These perks add value and convenience.
Bank of America® Customized Cash Rewards credit card
The Bank of America® Customized Cash Rewards credit card allows you to choose a 3% cash back category each month, making it a good option for those who want some flexibility in their rewards.
- Rewards Structure: Earn 3% cash back in a category of your choice (on up to $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1%), 2% cash back at grocery stores and wholesale clubs (on up to $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1%), 1% cash back on all other purchases.
- Additional Benefits: Offers online and mobile banking and overdraft protection (if linked to a Bank of America checking account).
Frequently Asked Questions
What is a cash back credit card?
A cash back credit card is a type of credit card that rewards you with a percentage of your spending back in the form of cash. This cash back can be redeemed as a statement credit, direct deposit, or other options.
How do cash back rewards work?
When you make purchases with a cash back credit card, you earn a percentage of the purchase amount back as cash. This percentage varies depending on the card and the spending category.
What is an annual fee?
An annual fee is a yearly charge that some credit cards impose for the privilege of using the card. Some cards with higher rewards may have annual fees, but many excellent cash back cards come with no annual fee.
What is an APR?
APR stands for Annual Percentage Rate and represents the interest rate you'll be charged on your outstanding balance if you don't pay it off in full each month. It's crucial to choose a card with a low APR if you tend to carry a balance.
What are rotating categories?
Rotating categories are spending categories that change each quarter, in which you earn a higher cash back rate. Some cards, like the Discover it Cash Back, feature these rotating categories.
What is a welcome bonus?
A welcome bonus is an incentive offered to new cardholders, typically in the form of a cash bonus or points, after meeting certain spending requirements within a specified timeframe.
How do I choose the best cash back credit card for me?
Consider your spending habits, preferred rewards structure (flat rate vs. tiered or rotating), and whether you're willing to pay an annual fee. Compare different card options to find the one that aligns best with your needs.
Can I redeem my cash back rewards for anything other than cash?
Yes, some cards allow you to redeem your cash back rewards for gift cards, travel, or merchandise. However, redeeming for cash is usually the most flexible option.
Conclusion
Choosing the best cash back credit card depends on your individual spending habits and preferences. Consider factors such as annual fees, rewards structures, and additional benefits to find the card that maximizes your cash back earnings. Carefully evaluate your needs and compare the options available to make an informed decision and start earning rewards on your everyday purchases.