Discover the 5 best cash back credit cards in the USA! Learn how to choose the right one, understand the types, benefits, and get recommendations for top cash back cards.
What Are Cash Back Credit Cards?
Cash back credit cards are a type of rewards card that allows you to earn a percentage of the money you spend as cash back. This means for every purchase you make, you receive a small percentage of that amount returned to you, usually in the form of statement credits, checks, or direct deposits. They’re a popular choice among consumers who want to save money on everyday purchases without worrying about redeeming complicated reward points.
Types of Cash Back Credit Cards
- Flat-Rate Cash Back Cards
These cards offer a fixed percentage (e.g., 1.5% or 2%) on all purchases. They’re simple to use because you earn the same rate across all spending categories. - Category-Based Cash Back Cards
With these cards, you earn higher rewards in certain spending categories like groceries, dining, gas, or travel. However, the rates may vary and may require activation or enrollment in rotating categories. - Hybrid Cash Back Cards
These cards combine both flat-rate and category-based rewards, allowing you to earn different rates depending on where you spend the most.
Benefits of Cash Back Credit Cards
- Easy to Understand: Cash back rewards are straightforward and simple to redeem.
- Instant Savings: Cash back is returned to you immediately or credited to your account, allowing you to save money in real-time.
- Flexible Use: Unlike travel points or miles, cash back can be used for anything, giving you more freedom to decide how to spend or save.
- No Annual Fees (on some cards): Many cash back cards don’t charge annual fees, making them a great option for consumers who want to avoid extra costs.
- Bonus Categories: Many cards offer higher cash back in categories like dining, groceries, or gas, which can maximize your savings.
Why Choose Cash Back Credit Cards?
Cash back credit cards are perfect for people who want simple rewards and savings without having to deal with the complexities of other reward programs like points or miles. These cards allow you to earn money back on your purchases, which can then be used for anything you choose. Whether you are a frequent shopper, a traveler, or just someone looking for a little extra money each month, cash back credit cards offer tangible financial benefits.
How to Choose the Best Cash Back Credit Cards
When choosing the best cash back credit card for your needs, consider the following factors:
- Spending Habits: Do you spend more on groceries, gas, or dining out? Some cards offer higher cash back percentages in specific categories.
- Sign-Up Bonus: Look for cards that offer an attractive sign-up bonus to maximize your rewards when you first open the account.
- Annual Fee: Some of the best cash back credit cards charge an annual fee. Compare this with the potential cash back rewards to determine if it’s worth the cost.
- APR and Other Fees: If you plan to carry a balance, consider the APR. A lower interest rate is ideal, but try to pay off your balance in full each month to avoid interest charges.
- Redemption Options: Make sure the redemption options for your cash back are convenient, whether it’s through statement credits, checks, or direct deposits.
5 Best Cash Back Credit Cards in the USA
1. Chase Freedom Unlimited®
- Pros:
- 1.5% cash back on all purchases
- 5% cash back on travel purchased through Chase Ultimate Rewards
- No annual fee
- 0% Intro APR for the first 15 months
- Cons:
- High APR after introductory period
- Limited bonus categories compared to others
- Benefits:
- Unlimited cash back on every purchase
- Access to Chase Ultimate Rewards program for travel perks
- Best For:
- Those who want a straightforward, flat-rate cash back card with no annual fee.
- Website: Chase Freedom Unlimited®
2. Blue Cash Preferred® Card from American Express
- Pros:
- 6% cash back on U.S. supermarkets (up to $6,000 per year)
- 3% cash back on transit and U.S. gas stations
- $300 welcome bonus after spending $3,000 in the first 6 months
- Cons:
- $95 annual fee (waived for the first year)
- Foreign transaction fees
- Benefits:
- High cash back rates for everyday expenses like groceries and gas
- Great for families who spend a lot on food
- Best For:
- Consumers who spend heavily on groceries and gas.
- Website: Blue Cash Preferred® Card from American Express
3. Citi® Double Cash Card
- Pros:
- 2% cash back on all purchases (1% when you buy, 1% when you pay)
- No categories to track
- No annual fee
- Cons:
- No sign-up bonus
- Cash back only credited when you pay your bill
- Benefits:
- Simplicity with 2% cash back on every purchase
- No rotating categories or activation required
- Best For:
- Those who prefer a straightforward, high cash back percentage with no categories.
- Website: Citi® Double Cash Card
4. Discover it® Cash Back
- Pros:
- 5% cash back on rotating categories (up to $1,500 per quarter, activation required)
- 1% cash back on other purchases
- No annual fee
- 0% intro APR on purchases for 15 months
- Cons:
- Limited 5% categories can be restrictive
- Requires activation each quarter
- Benefits:
- Generous rewards in rotating categories
- Cashback match for the first year
- Best For:
- Those who can optimize rotating categories for maximum rewards.
- Website: Discover it® Cash Back
5. Capital One QuicksilverOne® Cash Rewards Credit Card
- Pros:
- 1.5% cash back on all purchases
- No rotating categories
- $39 annual fee (no introductory fee)
- Cons:
- High APR
- $39 annual fee
- Benefits:
- A great choice for those who want a consistent, flat-rate cash back card
- Ideal for those with fair credit
- Best For:
- Individuals who want a straightforward card with a low annual fee and consistent rewards.
- Website: Capital One QuicksilverOne®
Conclusion: 5 Best Cash Back Credit Cards in USA
The 5 best cash back credit cards in USA provide diverse options to suit different financial goals, from flat-rate rewards to bonus categories. Whether you’re looking for simplicity, higher rewards on specific purchases, or no annual fees, there’s a card for everyone. By understanding your spending habits and comparing the benefits of each card, you can maximize your cash back and save money on your everyday purchases. Make sure to choose a card that aligns with your financial lifestyle to make the most of your cash back rewards.
