When it comes to managing your finances, finding ways to save money on everyday purchases is a game-changer. One of the easiest and most rewarding ways to do this is by using cashback credit cards. These cards offer cash rewards for each dollar you spend, making them a great tool for anyone looking to maximize savings on regular purchases.
In this article, we’ll dive into the best cashback credit cards currently available. Whether you’re buying groceries, filling up your gas tank, or shopping online, these cards can help you earn rewards and save money in the process. Plus, we’ll look at the unique features of each card so you can decide which one best fits your lifestyle.
1. Blue Cash Preferred® Card from American Express
If you’re looking for a high cashback rate on supermarket purchases, the Blue Cash Preferred® Card from American Express is hard to beat. With 6% cashback on the first $6,000 spent at U.S. supermarkets (then 1%), this card is perfect for families or anyone who does a lot of grocery shopping. You’ll also earn 3% cashback on transit, including parking, tolls, trains, buses, and rideshares like Uber and Lyft. And don’t forget about 1% cashback on all other purchases.
The card also offers a welcome bonus of $350 after you spend $3,000 in the first three months. However, it comes with an annual fee of $95, which is something to consider before applying. Still, if you’re spending a lot on groceries and transit, the rewards will quickly offset that fee.
2. Chase Freedom Flex℠
For those who love variety and flexibility, the Chase Freedom Flex℠ card is a solid choice. This card offers 5% cashback on quarterly rotating categories (up to $1,500 in combined purchases), such as grocery stores, gas stations, or select streaming services. If you stay on top of the rotating categories, you can earn a lot in cashback. Plus, you’ll earn 3% cashback on dining and 1% on all other purchases.
A standout feature of the Chase Freedom Flex℠ is its 0% APR for the first 15 months on purchases and balance transfers, which can help you save even more if you have an outstanding balance. There’s no annual fee, and a $200 sign-up bonus is available after spending $500 in the first three months.
One of the main advantages of the Chase Freedom Flex℠ is its ability to be paired with the Chase Sapphire Preferred® Card or Chase Sapphire Reserve® for those who want to earn even more points and rewards through the Chase Ultimate Rewards® program. This makes it a great option for anyone looking to maximize their rewards.
3. Citi® Double Cash Card
The Citi® Double Cash Card is straightforward and no-frills, which makes it ideal for people who want cashback without any gimmicks. You earn 2% cashback on every purchase—1% when you buy and 1% when you pay off your balance. This simple structure is incredibly easy to use, and with no rotating categories to track, it’s perfect for people who don’t want to deal with the hassle of switching categories every few months.
This card has no annual fee, which is a major perk, especially when compared to other cashback cards with annual fees. And for those who carry a balance, the 0% APR for the first 18 months on balance transfers (with a 3% fee) is a great bonus.
The Citi® Double Cash Card is perfect for those who don’t want to fuss with managing different categories, and prefer to earn cashback on all purchases, no matter where they shop.
4. Capital One® Quicksilver® Cash Rewards Credit Card
The Capital One® Quicksilver® Cash Rewards Credit Card is another simple yet rewarding cashback card. It offers 1.5% cashback on every purchase, which may not sound like a lot compared to other cards, but it’s important to remember that it has no annual fee. For anyone who doesn’t want to think too much about their credit card’s rewards program, this is an excellent option.
Plus, the card offers a $200 bonus after you spend $500 in the first three months, and there’s also no foreign transaction fee, making it a great option for travelers. With 1.5% cashback on every purchase and no restrictions, it’s a reliable choice for everyday spending.
5. Discover it® Cash Back
If you’re someone who loves to earn extra rewards, the Discover it® Cash Back card offers 5% cashback on rotating categories each quarter (up to $1,500 in purchases), such as grocery stores, restaurants, and Amazon.com. This card has no annual fee, and at the end of the first year, Discover will match all the cashback you’ve earned, which is a great way to supercharge your savings.
Like the Chase Freedom Flex℠, the Discover it® Cash Back card requires you to activate the bonus categories every quarter, but the card’s ability to double your cashback in the first year is an excellent way to maximize your rewards.
The 5% cashback categories change every quarter, so it’s a good idea to keep track of the new categories to take full advantage of this card.
6. Wells Fargo Active Cash® Card
For people who want a straightforward cashback card, the Wells Fargo Active Cash® Card offers 2% cashback on every purchase, with no annual fee. There are no rotating categories or spending limits, which makes it an easy card to use day-to-day. Plus, you’ll earn a $200 cash rewards bonus when you spend $500 in the first 3 months.
What makes this card even better is the 0% intro APR for the first 15 months on purchases and balance transfers, which allows you to pay down any existing credit card balances without paying interest.
7. Bank of America® Customized Cash Rewards Credit Card
If you prefer to choose your category for cashback, the Bank of America® Customized Cash Rewards Credit Card might be just the card for you. You can earn 3% cashback in one of six categories, such as dining, online shopping, gas, or drug stores. You’ll also earn 2% cashback at grocery stores and wholesale clubs (on the first $2,500 combined in the 3% and 2% categories each quarter), and 1% cashback on all other purchases.
This card also offers a $200 online cash rewards bonus after spending $1,000 in the first 90 days, making it a great choice if you’re looking for a versatile and customizable card.
Choosing the Right Card for Your Spending Habits
When it comes to cashback credit cards, the key to getting the most out of your rewards is choosing the card that aligns with your spending habits. Are you someone who spends a lot on groceries, dining out, or gas? Or do you prefer the simplicity of a flat-rate cashback card? There are options for every lifestyle, so it’s important to think about where you spend the most money.
For example, if you’re a frequent grocery shopper, cards like the Blue Cash Preferred® Card from American Express or the Bank of America® Customized Cash Rewards card can provide incredible savings. On the other hand, if you prefer a flat cashback rate on everything you buy, the Citi® Double Cash Card or Capital One® Quicksilver® Cash Rewards Credit Card could be a better fit.
It’s also important to consider other factors, such as annual fees, interest rates, and introductory offers. If you’re just starting with credit cards, a no annual fee card like the Chase Freedom Flex℠ or Discover it® Cash Back could be a great way to test out cashback rewards without the risk of paying fees.
Maximizing Your Cashback Rewards
Once you’ve selected the right cashback credit card, there are a few strategies you can use to ensure you’re maximizing your rewards:
- Track spending categories: If your card offers rotating categories, keep track of when they change and activate your bonus categories on time.
- Pay your balance in full: To avoid paying interest, always try to pay off your balance in full each month.
- Take advantage of sign-up bonuses: Many cards offer large bonuses if you meet a spending requirement in the first few months. Be sure to make use of these offers.
- Use your card for all purchases: To earn cashback on everything you buy, be sure to use your card regularly.
By using the best cashback credit cards, you can turn your everyday purchases into significant savings. With so many options to choose from, you’re sure to find a card that suits your spending habits and helps you earn more rewards. Whether you’re looking for high cashback on groceries, flexible rewards, or a straightforward flat-rate option, there’s a perfect card out there for you.