20 Best Cashback Credit Cards Of 2024

Charity Jerop
September 11, 2023
20 Best Cashback Credit Cards Of 2024
20 Best Cashback Credit Cards Of 2024

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A re you looking to sign up for a cashback credit card?

Credit cards can be handy financial tools to give you the purchasing power and offer rewards for everyday purchases.

Some of the eligible uses of credit cards include grocery, tickets, dine, travel, business purchases, etc.

Furthermore, utilizing a credit card can help improve your credit score.

And if you can conveniently pay with your credit card, why not get money back on every purchase you make?

This blog looks into the 20 best cashback credit cards that can reward you with cash and other rewards every time you transact with the card. 

We compare these cards in cashback amount, APR (annual percentage rate), annual fees, and other card perks. 

Table of Contents

Top Select For Best Cashback Credit Cards

Narrowing down your preferable cashback credit card can be quite a hassle.

Check out the cashback credit cards below to determine the best card that fits your spending and lifestyle

Chase Freedom Unlimited® Credit Card - Best Cashback Credit Card for Everyday Purchases

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  • Until March 31, 2025, receive a 5% cashback on eligible Lyft services when purchased through the Lyft app.
  • Amazon Shop with Points: Redeem points at checkout, where 100 points equal $0.80.
  • Amazon.com Service Terms: Refer to Amazon.com Shop with Points service terms.
  • Zero Liability: Zero Liability Protection doesn't cover unauthorized authorized user account use.
  • Complimentary DashPass: Get 3 months free DashPass, 50% off for 9 months with DoorDash.
  • Complimentary Instacart+ Membership: Enjoy a free Instacart+ membership.
  • Get a $200 bonus after spending $500 in 3 months.
    Earn 5% cash back on gas stations (up to $6,000) in the first year.
  • Earn substantial rewards with elevated flat rates and boosted category rewards.
  • Introductory APR offers benefit those with card debt or upcoming purchases.
  • Valuable benefits for a no-annual-fee card, including travel insurance and DashPass.
  • Higher welcome offer compared to typical no-annual-fee cards.
  • Shorter intro APR periods than some other rewards cards.
  • General purchase cash back rate of 1.5% is lower than some flat-rate cards.
  • Risk of penalty APR up to 29.99% for late payments, potentially indefinite.

Chase Freedom Flex® Card - Best Cashback Credit Card for Multiple Cashback Offers

Why we like it:

Annual Fees

$0

Regular APR

20.49%-29.24% Variable APR

Credit Required

690-850 (Good – Excellent)

Annual Fees

$0

Regular APR

20.49%-29.24% Variable APR

Credit Required

Good to Excellent (670 – 850)

Why we like it:

  • Additional cash back rates: 5% on travel through Chase Ultimate Rewards, 3% on dining, 3% at drugstores, and 1% on all other purchases.
  • Low intro APR: 0% for 15 months on purchases and balance transfers, then 20.49%–29.24% APR. 
  • Available if no prior card/bonus in 24 months.
  • Enjoy 5% cash back on gas (up to $6,000) in the first year
  • Earn 5% cash back on rotating bonus categories like gas, groceries, and online merchants (up to $1,500 per quarter)
  • $200 bonus + 5% gas offer for $500 spend in 3 months
  • Earn 5% cash back on gas (up to $6,000 in 1st year)
  • 5% cash back on quarterly categories (up to $1,500/quarter)
  • Additional cash back on travel, dining, and more
  • Low intro APR: 0% for 15 months on purchases and balance transfers
  • Prior card/bonus restrictions apply
  • Intro APR reverts to 20.49%–29.24% after 15 months

Ink Business Unlimited® Credit Card - Best Flat-rate Cashback Credit Card for Business

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  • Intro 0% APR for 12 months on purchases, then variable APR.
  • Earn $750 bonus cash back with $6,000 spend in 3 months.
  • Unlimited 1.5% cash back on every business purchase.
  • Redeem rewards for cash back, gift cards, travel via Chase Ultimate Rewards®.
  • Free employee cards with spending limits.
  • Enjoy 5% cash back on Lyft rides till March 2025.
  • $750 intro cashback bonus
  • 0% intro APR
  • No annual fees
  • Unlimited 1.5% cashback.
  • Ink Unlimited® Business Credit Card
  • Foreign transaction fees apply
  • No bonus categories to get more rewards

Ink Business Cash® Credit Card

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  • $750 bonus cash back for $6,000 spend in 3 months.
  • Earn 5% cash back on office supply stores, internet, cable, phone services (up to $25,000/year).
  • Get 2% cash back at gas stations and restaurants (up to $25,000/year).
  • Unlimited 1% cash back on all other purchases.
  • Free employee cards with spending limits.
  • Redeem for cash back, gift cards, travel through Chase Ultimate Rewards®.
  • Enjoy 5% cash back on Lyft rides till March 2025.
  • Helps new businesses with introductory APR.
  • No annual fee, ideal for budget-conscious owners.
  • Unique flexible rewards with Chase Ultimate Rewards.
  • Capped rewards at $50,000 annually for larger businesses.
  • 3% foreign transaction fee reduces earnings.
  • Not suited for small or remote-based businesses.

CITI DOUBLE CASH® Credit card - 18-month BT offer - Best Cashback Credit Card for No Limits on Cashback Earnings

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. This card's simplicity and lack of bonus categories make it an easy-to-use option for those seeking hassle-free cash back rewards.
  2. The flexibility to redeem points for statement credits, bank account deposits, or transfers to travel partners adds versatility to the The Citi Double Cash® Card - 18 month BT offer rewards program.
  3. While the card's 0% introductory APR on balance transfers for 18 months can be a valuable feature, it's important to consider the variable APR after the introductory period.
  • An excellent standalone or second rewards card with one of the highest flat cash back rates available.
  • No annual fee to worry about.
  • Features a generous intro APR offer for balance transfers, one of the longest among rewards cards.
  • Lacks a sign-up bonus, putting it at a disadvantage compared to other 2 percent flat-rate cash back cards.
  • Not suitable for international travel due to a high 3 percent foreign transaction fee.
  • Unlike some rivals, it doesn’t provide an introductory APR for new purchases.

Capital One SavorOne Student Cash Rewards Credit Card—Best Cashback Credit Card for Cashback on Grocery Shopping and Dining

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Rewards don't expire for the life of the account, and you can redeem cash back for any amount.
  2. Earn 10% cash back on purchases made through Uber and Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024.
  3. Enjoy 8% cash back on Capital One Entertainment purchases with exclusive access and cardholder perks.
  4. Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.
  • No annual fee, ensuring no need to balance costs with rewards.
  • Provides an intro APR period for both purchases and balance transfers, aiding interest-free balance reduction.
  • Attain the welcome offer with relatively low spending.
  • Requires at least good credit for application approval.
  • Optimal benefits hinge on spending within tiered rewards categories.
  • Boosted rewards on hotel and rental car bookings necessitate booking through Capital One Travel.

Citi Custom Cash® Card - Best 5% Cashback on Groceries and Entertainment

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. No annual fee, providing a cost-effective way to earn competitive cash back rewards effortlessly.
  2. Automatic 5% cash back on top spending category each billing cycle, up to $500, and 1% thereafter, without the hassle of category activation.
  3. Tailored rewards to suit diverse spending patterns, including popular categories like dining, groceries, travel, streaming services, and more.
  4. Seamless integration with other Citi cards that earn ThankYou points, allowing for easy consolidation and redemption options.
  • High rewards for top category without annual fee.
  • Valuable World Elite Mastercard perks.
  • Complements well with other Citi cards.
  • Spending limits on top category.
  • Need to track spending for bonus.
  • Not versatile for all spending.

Wells Fargo Active Cash® Card - Best Cashback Credit Card for unlimited 2% Cashback on Purchases

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Benefit from a 0% intro APR for 15 months on purchases and qualifying balance transfers.
  2. No annual fee and added security features for peace of mind.
  3. Get up to $600 of cell phone protection when you pay your monthly cell phone bill with your eligible Wells Fargo card.
  4. Access to Visa Signature Concierge and Visa Signature Luxury Hotel Collection for premium perks.
  5. Flexible redemption options including statement credit, ATM withdrawal, direct deposit, or mailed check.
  • Earn unlimited 2 percent cash rewards on purchases with versatile redemption options, no gimmicks.
  • Intro APR offer for purchases and qualifying balance transfers helps save on interest.
  • No annual fee suits various rewards strategies.
  • 3 percent foreign currency conversion fee hampers international purchases.
  • Lacks certain valuable perks compared to rival cash back cards.
  • Limited travel rewards redemption value compared to other issuers.

Bank of America® Unlimited Cash Rewards - Best Cashback Credit Card for Online $200 bonus on Sign-up

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Benefit from a 0% intro APR for 15 billing cycles on both purchases and balance transfers (3% fee applies).
  2. No annual fee, providing a cost-effective way to earn cash back rewards.
  3. Preferred Rewards members can earn up to 75% more cash back on every purchase, potentially reaching 2.62% cash back.
  4. Flexible redemption options including statement credit, direct deposits, or credit to eligible Bank of America accounts.
  5. Contactless card for added convenience and security.
  • New cardholder bonus offer.
  • Intro APR period.
  • No annual fee.
  • Requires good/excellent credit.
  • Best rewards limited to certain customers.
  • No bonus categories.

Capital One QuicksilverOne Cash Rewards Credit Card - Best Flat-rate Cashback Credit Card for Fair Credit

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Benefit from automatic credit line reviews, potentially allowing for an increase in your credit limit in as little as 6 months.
  2. Access to CreditWise from Capital One, allowing you to monitor and track your credit profile for free.
  3. $0 Fraud Liability ensures you won't be held responsible for unauthorized charges, offering peace of mind.
  4. Tap to Pay feature allows for quick and secure contactless payments, enhancing convenience.
  5. No foreign transaction fees, making it a suitable option for international travel.
  • Qualify for a higher credit limit with timely payments in just six months, promoting good credit behavior.
  • Enjoy effortless cash back on all purchases, no limits or rotating categories.
  • Travelers benefit from no foreign transaction fees, ideal for international shopping.
  • Need to spend at least $2,600 annually to counter the 1.5 percent cash back rate’s annual fee.
  • No welcome offer or introductory APR for purchases/balance transfers.
  • Perks are less remarkable in contrast to alternative cash reward cards.

Bank of America® Customized Cash Rewards - Best Cashback Credit Card for Shopping Categories of your Choice

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Benefits:

  1. Easy Redemption Options for statement credits, direct deposits, or contributions to eligible accounts.
  2. Contactless Payment Option for added convenience and security.
  3. Low Balance Transfer Fee of 3% (applies for the first 60 days).
  4. Wide Range of Eligible Retailers in the online shopping category.
  5. Access to Bank of America® Preferred Rewards for higher rewards rates and other benefits.
  6. Chip Card Security and Contactless Payment for ease of use.
  • Monthly category swap for rewards alignment.
  • Up to 75% more cash back for Bank of America® Preferred Rewards members.
  • Generous intro APR periods for purchases and balance transfers.
  • Spending cap on 3% and 2% categories.
  • Higher sign-up bonus spending requirement.
  • Few standout benefits beyond rewards program.

Discover It® Cash back Credit Card - Best Cashback Credit Card for 5% Cashback on Rotating Categories

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Valuable sign-up bonus where Discover matches all the cash back you’ve earned during your first year.
  2. Flexible redemption options for your cash back rewards.
  3. Free access to your FICO® score.
  4. Service to help protect your personal information online.
  5. No foreign transaction fees.
  • Top rewards rates in rotating categories without an annual fee.
  • Offers some of the lowest rates and fees, including no foreign transaction fees, penalty APR, or first late payment fee.
  • Cashback Match program doubles cash back earned in the first year, a strong welcome offer.
  • Rewards success depends on matching spending with rotating categories announced a few months ahead.
  • No option to enhance rewards value through transfers to other loyalty programs via premium Discover card.
  • Rotating category program demands quarterly activation and might be complex for newcomers to rewards cards.

Discover It® Student Cash Back - Best Cashback Credit Card for Students to Build Credit

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Discover will match all the cash back you’ve earned at the end of your first year, making it a lucrative deal for students.
  2. This card provides an opportunity for students with limited credit history to start building their credit.
  3.  Discover offers assistance in removing personal information from select people-search sites, helping to safeguard your data.
  4. 0% Intro APR: Enjoy a 0% intro APR on purchases for 6 months, providing some breathing room for initial expenses.
  5. The card offers forgiveness for your first late payment, providing a bit of flexibility for students.
  • Best for students to build credit. You don’t need any credit history to qualify for the card.
  • Rewards automatic match during the first year.
  • Discover It® App to help manage accounts and track rewards on the fly.
  • Zero annual fees
  • The rotating reward categories might be confusing and a hassle for a student. Plus, you’ll need to activate the cashback rewards each quarter of the year.

TD Cash® Credit Card— Best Cashback Credit Card for Intro bonus and 2% cashback rewards

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Special limited-time offer: Earn 5% cash back on Grocery Store purchases for the first 6 months or up to $6,000 in spend.
  2. Receive a $150 cash back bonus when you spend $500 within the first 90 days after account opening.
  3. Enjoy a 0% introductory APR for balance transfers for the first 12 billing cycles (then variable APR applies).
  4. Benefit from Visa perks including cell phone protection when you pay your monthly mobile bill with the card.
  5. No annual fee, providing excellent value for cardholders.
  6. Competitive variable APRs based on creditworthiness.
  • Zero annual fees.
  • There are no limits on cashback rewards as long as you have an active account.
  • 0% intro APR.
  • Easy-to-earn intro bonus of $150.
  • Three percent on foreign purchases.
  • Balance transfer fees apply.
  • Late and return payment of up to $40

T.D. Double Up® Credit Card - Best Cashback Credit Card for Double Rewards

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Benefit from a 0% introductory APR on balance transfers for the first 15 billing cycles (20.24%, 25.24% or 30.24% variable APR thereafter).
  2. No annual fee, making it a cost-effective choice for cash-back rewards.
  3. Visa benefits, including cell phone protection when you pay your monthly mobile bill with your card.
  4. Points can be redeemed for cash back, gift cards, travel, and merchandise at a value of 1 cent per point.
  5. No foreign transaction fees, adding to the card's cost-saving advantages.
  • $100 Cash Back for $1,000 spend in 90 days.
  • Unlimited 2% Cash Back on all purchases.
  • Visa benefits, including cell phone protection.
  • Contactless payments and no annual fee.
  • Instant card replacement.
  • Limited availability to select states.
  • No enhanced bonus categories.
  • Potential higher APR after introductory period.
  • 3% foreign transaction fee.
  • Minimum spending for signup bonus.

Blue Cash Preferred® Card from American Express - Best Cashback Credit Card for 6% Cashback

card_name

(Terms Apply – Rate and Fees)

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Take advantage of the Buy Now, Pay Later feature with $0 intro plan fees for the first 12 months.
  2. Low intro APR of 0% on purchases and balance transfers for 12 months, followed by a variable APR of 19.24% - 29.99%.
  3. Additional perks include statement credits for Equinox+ membership and the Disney Bundle subscription.
  • Strong purchase protection, return protection, and extended warranty benefits.
  • Earns top-rate cash back on groceries, gas, transit, and streaming.
  • Valuable perks like Equinox+ credits and Disney Bundle streaming service.
  • Offers a respectable welcome offer and introductory APR for new purchases and balance transfers.
  • Limited rewards redemption options compared to other cash back cards.
  • The card has a $95 annual fee after the first year, which may be a deal breaker for cost-conscious people.
  • High-earning U.S. supermarket category capped at $6,000 in annual spending, excluding certain retailers.

Blue Cash Everyday® Card from American Express - Highest Cashback Credit Card with No Annual Fees

card_name

(Terms Apply – Rate and Fees)

Why we like it:

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Annual Fees

annual_fees

Regular APR

reg_apr,reg_apr_type

Credit Required

credit_score_needed

Why we like it:

  1. Receive a $7 monthly statement credit after using your Blue Cash Everyday Card for eligible subscriptions to The Disney Bundle.
  2. Flexible redemption options for statement credit, ATM withdrawal, direct deposit, or mailed check.
  3. Additional perks include a $180 credit for Home Chef and access to American Express benefits
  • Enjoy the benefits without any yearly cost.
  • Earn substantial cash back with 3% on bonus categories.
  • Benefit from a 0% intro APR on purchases and balance transfers for 15 months.
  • Earn 3% cash back on U.S. supermarkets, online retail, and gas stations (up to $6,000/year).
  • Requires good/excellent credit
  • Spending caps on bonus rewards

American Express Cash Magnet® Card—Best Cashback Credit Card for Flat-rate Cashback with Zero Annual Fees

(Terms Apply – Rate and Fees)

Why we like it:

Annual Fees

$0

Regular APR

19.24%-29.99% Variable APR

Credit Required

Good to Excellent (670 – 850)

Annual Fees

$0

Regular APR

19.24%-29.99% Variable APR

Credit Required

Good to Excellent (670 – 850)

Why we like it:

  1. Receive unlimited 1.5% cash back on all your purchases, offering reliable rewards on every transaction.
  2. Benefit from the Plan It® option to split up purchases of $100 or more into monthly installments with a fixed fee, providing greater financial control.
  3. Access to American Express Experiences, offering exclusive virtual events and content in entertainment, sports, and more.
  4. Pay It® feature allows for quick and convenient payments for small purchase amounts while still earning rewards.
  • Automatic cash back on all purchases.
  • No annual fee.
  • Straightforward cash back plan with no activation required.
  • Welcome offer is lower compared to other cash back cards.
  • Cash back rate is lower in some categories compared to other cards.
  • The card charges foreign transaction fees.

myWalgreens®Credit Card—Best Cashback Credit Card for Walgreens Purchases

Why we like it:

Annual Fees

$0

Regular APR

22.99%, 28.99% or 31.99%, Variable

Credit Required

Good – Excellent (690-850)

Annual Fees

$0

Regular APR

22.99%, 28.99% or 31.99%, Variable

Credit Required

Good – Excellent (690-850)

Benefits:

  1. Enjoy 3% Walgreens Cash rewards on grocery and health & wellness purchases outside of Walgreens, from spa appointments to pet store expenses.
  2. Earn 1% Walgreens Cash rewards on all other purchases made with the card.
  3. No annual fee, providing straightforward savings on everyday essentials.
  4. Redeem rewards instantly at checkout, ensuring immediate value from your cash rewards.
  5. Benefit from $0 fraud liability and access to your credit bureau score for added security.
  6. Access personalized offers, product recommendations, and exclusive deals tailored just for you.
  • Earn substantial cash rewards on Walgreens branded products, other brands & Rx purchases at Walgreens, and various categories outside.
  • Versatile earning potential spanning groceries, personal care, health & wellness, and more.
  • Benefit from 1% cash rewards on all Mastercard purchases for everyday savings.
  • Instant redemption of earned cash rewards adds convenience.
  • Benefits limited to specific brands within Walgreens.
  • Redemption options restricted to future purchases.
  • Category-specific rewards may have caps on earnings.
  • Varying percentages may require strategic spending planning.

Alliant Visa® Signature - Best Cashback Credit Card for Alliant Credit Union Members

Why we like it:

Annual Fees

$0

Regular APR

16.99% – 26.99% (Variable)

Credit Required

Excellent (740 – 850)

Annual Fees

$0

Regular APR

16.99% – 26.99% (Variable)

Credit Required

Excellent (740 – 850)

Why we like it:

  1. Simplified rewards program eliminates the need to track bonus categories.
  2. No foreign transaction fees, ideal for international travelers.
  3. Access to additional benefits and features through Alliant Credit Union membership.
  4. Enhanced security features, including an embedded EMV chip.
  5. Additional protections like Purchase Security, Travel Accident Insurance, and Extended Warranty Protection.
  • Offers one of the market’s highest flat cash back rates.
  • No annual fee, providing cost-free ownership.
  • Features a relatively low variable APR range, ideal for occasional balance holders.
  • Qualification involves meeting multiple requirements, more than traditional cards.
  • A $50 minimum redemption requirement makes reward redemption less flexible.
  • No cash sign-up bonus or introductory APR offers available.

Things To Consider In A Cashback Credit Card

With a slew of cashback credit cards from different companies in the market, it can be quite a hassle figuring out the best cashback credit card for you.

1. Cashback Credit Card Categories

There is more to credit cards than meets the eye.

First, there are three types of cashback credit cards in the market—the flat-rate, rotating category, and tiered-rate credit cards.

You can consider any of the above credit card types depending on your spending habits and card use.

1. Flat-Rate Cashback Credit Cards: These are the most straightforward cashback credit cards to use, and as its name suggests, you get a flat-rate cashback on any transaction.

Depending on the provider, you can expect a 1.5% to 2.5% cashback rate on any purchase.

An excellent example of a flat-rate cashback credit card is the Capital One Quicksilver Cash Reward card. It offers an unlimited 1.5% money back on every purchase you make every day. 

Chase’s Freedom Unlimited® Credit Card is a flat-rate cashback credit card with a 1.5% cashback rate on your every purchase.

2. Rotating Categories Cashback Credit Card: Have you heard of a credit card promising up to 5% cashback on your purchases? Those are the cashback credit cards that feature rotating categories of rewards. 

In layman language, you’ll need to use your credit card to pay for stuff in specific categories available for that quarter year to qualify for the 5% money back. 

So, although the cashback rate is pretty tempting, you need to meet the terms to get the reward.

With a rotating categories cashback credit card, you’ll need to opt-in to the 5% cashback offer every quarter year.

Notably, the cashback rate applies to purchases of up to $1,500 in that active quarter with this credit card type.

Chase Freedom Flex℠ cashback credit card is an excellent example of rotating cashback categories.

3. Tiered-Rate Cashback Credit Card: This is another cashback credit card type that requires some effort on the spender to enjoy maximum cashback and rewards.

The tiered rate means that the credit card features some categories with higher cashback and a 1% cashback on all other purchases.

An excellent example of a tiered-rate credit card is the Capital One Savor Rewards which offers 4% on popular streaming, dining, and entertainment. You will also get 3% cashback on groceries and 1% on all other purchases.

2. Cashback Credit Card Fees

Another thing to consider when hunting for the best cashback credit card is the annual fee. Some cashback cards like the Capital One Savor Rewards card have annual fees that you must pay to keep and use the card.

But luckily, many of the cashback credit cards offer zero annual credit card fees. Zero-fee cashback credit cards are great to maximize your card earnings without paying any fee. And if you must pay the credit card’s annual fee, you can do the math and see if using the card is worth your money. 

Notably, other cashback credit card fees apply— apart from annual fees—and you should consider them when choosing your credit card.

For instance, credit cards can have balance transfer fees—some can be pretty high, so it is good to look for a cashback credit card that charges lower fees for balance transfer transactions.

A late fee is another typical credit card fee that issuers can charge on your card for late payments.

Some credit cards don’t have a late fee policy but ensure to read the fine print to understand all the terms and conditions.

Another thing you should consider is the foreign transaction fee. Some cashback credit cards can charge you to make transactions outside of The US, including using your credit card for online purchases in different currencies.

3. Cashback Credit Card Perks And Rewards

Cashback credit cards have different reward structures, and it is best to consider one that works for you.

A recent study by Bankrate shows that 31% of cardholders didn’t utilize their cashback and rewards in 2020. 

You’re likely to leave your money on the table by pulling out the wrong card. 

Utilize all your rewards and bonuses by understanding each card’s redemption structure.

Some of the typical credit card perks include money back to your account, travel points, a statement credit, and gift cards redemption.

A money-back credit card means getting the actual cashback loaded into your account every time you use the card.

With some credit cards, you will have to redeem your cashback in gift cards. 

Certain cards will allow you to redeem your cashback to pay off the balance on your credit card.

And lastly, with specific cashback credit cards, you can convert your cashback into travel points that you can redeem on select flights and hotels.

4. Credit Score

Another crucial variable determining whether you can get a credit card is your credit score.

And luckily, there is a credit card for every consumer regardless of your credit score rating.

Credit card providers can use FICO or VantageScore to determine your creditworthiness, and here is how those rankings look.

FICO® SCORE

  • Poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739
  • Very good: 740 to 799
  • Exceptional: 800 to 850

 

VantageScore

  • Very poor: 300 to 499
  • Poor: 500 to 600
  • Fair: 601 to 660
  • Good: 661 to 780
  • Excellent: 780 to 850

 

Understanding where you fall in the above credit ratings can help you choose the right cashback credit card.

Remember, cashback credit cards come with interest rates, and you can get high-interest rates if you’re a lower-scoring spender.

5. Cashback Credit Cards APR (Annual Percentage Rate)

A credit card’s APR is the interest you incur on balances on your card.

The credit card APR varies, depending on your credit card type and the company. 

Most cashback credit card companies have an introductory offer of 0% APR, which means you won’t have to pay interest on your card balances during the initial period.

According to a recent report by CreditCards, the average credit cards APR stands at 16.17%.

6. Cashback Credit Cards Limit

The credit card limit is crucial to consider when looking for a cashback credit card.

The credit limit you can get depends on your creditworthiness and other variables set by the card issuer.

The credit limit dictates the maximum balance amount you can utilize to make purchases before repaying.

What Are The Advantages Of Cashback Credit Cards?

Cashback credits cards offer more benefits than money-back to your account.

First, most cashback credit cards have sign-up bonuses, which means that you can get instant rewards once you sign up for the card. 

Often the bonuses apply when you purchase with your card within the introductory period.

Another advantage is that cashback credit cards can help you build your credit score.

Paying off your credit card bill on time can help keep your credit use down and boost your credit score.

Your credit card provider will typically share your card activity with credit reporting agencies like Experian, TransUnion, and Equifax.

Another benefit of cashback credit cards is that some have a 0% APR offer for the introductory period. And this means that you can enjoy an interest-free bonus for a while, which can be helpful if you’ve got large purchases to make.

Cashback Credit Cards Drawbacks

One of the most significant downsides of cashback credit cards is the high annual percentage rate (APR).

You can get the zero APR as a welcome offer, but the annual APR will start rolling once the introductory period is over.

And this means that you could be looking at an APR starting from 16% and upwards of 20%.

Furthermore, some cashback credit cards have cashback caps which means that you can’t earn more than the maximum cashback.

Additionally, cashback credit cards can charge a foreign transaction fee, which means you might need to pay to use your card to make online purchases outside the country.

Conclusion

There you have it! Twenty cashback credit cards with rewards that fit your spending habits and lifestyle.Whether you need best cashback credit card for grocery shopping, dining or travelling, there is a card for you.

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