Cashback credit cards are a great way to earn rewards for your everyday spending. Whether you’re shopping for groceries, dining out, or paying bills, these cards help you save money by giving back a percentage of your purchases. Here’s a guide to the best cashback credit cards and tips to choose the right one for your needs.
What is a Cashback Credit Card?
A cashback credit card rewards you with a percentage of your spending as cash. Depending on the card, you might earn a flat rate on all purchases or higher rates on specific categories like groceries, gas, or travel. The cashback can usually be redeemed as a statement credit, a check, or even deposited into a bank account.
Top Cashback Credit Cards
Here are some of the best cashback credit cards available:
1. Chase Freedom Flex
- Rewards:
- 5% cashback on rotating categories each quarter (up to $1,500 in combined purchases).
- 5% on travel booked through Chase Ultimate Rewards.
- 3% on dining and drugstores.
- 1% on all other purchases.
- Annual Fee: $0
- Best For: Those who want versatile rewards and don’t mind tracking rotating categories.
2. Discover it® Cash Back
- Rewards:
- 5% cashback on rotating categories each quarter (up to $1,500 in combined purchases, activation required).
- 1% on all other purchases.
- First-year cashback match (all cashback earned is doubled at the end of the first year).
- Annual Fee: $0
- Best For: First-time cashback card users and those who value the cashback match.
3. Blue Cash Preferred® Card from American Express
- Rewards:
- 6% cashback at U.S. supermarkets (up to $6,000 per year).
- 6% on select U.S. streaming services.
- 3% on transit and U.S. gas stations.
- 1% on all other purchases.
- Annual Fee: $95 (waived for the first year).
- Best For: Families with high grocery and streaming service spending.
4. Citi® Double Cash Card
- Rewards:
- 2% cashback on all purchases (1% when you buy and 1% when you pay).
- Annual Fee: $0
- Best For: Those who prefer a simple and straightforward cashback program.
5. Capital One SavorOne Cash Rewards Credit Card
- Rewards:
- 3% cashback on dining, entertainment, popular streaming services, and grocery stores.
- 1% on all other purchases.
- Annual Fee: $0
- Best For: Foodies and entertainment enthusiasts.
How to Choose the Best Cashback Credit Card
When selecting a cashback card, consider the following factors:
- Spending Habits: Identify your spending patterns. Do you spend more on groceries, dining, or gas?
- Annual Fees: Some cards have fees that may outweigh the rewards if your spending is low.
- Reward Categories: Choose a card that offers high cashback rates in categories where you spend the most.
- Redemption Options: Ensure the card’s redemption process suits your preferences, whether it’s statement credits, checks, or deposits.
- Sign-Up Bonuses: Many cards offer attractive bonuses for new cardholders who meet a minimum spending requirement.
Tips to Maximize Cashback
- Pay in Full: Avoid interest charges by paying your balance in full each month.
- Track Rotating Categories: For cards with rotating categories, activate them on time to earn maximum rewards.
- Combine Cards: Use multiple cashback cards to optimize rewards for different spending categories.
- Watch for Promotions: Some issuers offer limited-time promotions for extra cashback.
Final Thoughts
Cashback credit cards can significantly boost your savings when used responsibly. Evaluate your spending habits and financial goals to find the card that aligns with your needs. Start earning rewards today and make every purchase work for you!
