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 article looks into the 23 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.
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.
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.
- 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.
- 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.
- 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.
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.
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.
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.
Are there cashback credit cards for bad credit?
Yes, there are excellent cashback credit cards for bad credit to help you build your credit rating.
If you’ve got a fair/good credit score, you can consider unsecured cashback credit cards like Capital One Platinum Mastercard®.
It can also be pretty easy to qualify for secured cashback credit cards if you have bad credit.
You’ll need to load your credit card with a minimum deposit to act as collateral and your spending limit with secured credit cards.
If you are late on bill payment, you’ll lose your deposit, so make timely payments with such a credit card.
Importantly, consider a secured cashback credit card for bad credit that you can upgrade to unsecured once you hit a good credit score.
Secured Credit Card from Discover It® is an excellent unsecured cashback credit card that can upgrade to unsecured.
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%.
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.
With all that in mind, below are our top choices for cashback credit cards.
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.
1. Chase Freedom Unlimited® Credit Card—Best Cashback Credit Card for Everyday Purchases
Chase Freedom Unlimited is our first pick for the best cashback credit cards. If you’re looking for the best cashback credit card with the best sign-up bonus and zero annual fees, Chase Freedom Unlimited®’s cashback credit card is it. This cashback credit card features a $200 sign-up bonus and 5% money back when you use them at gas stations. The $200 welcome bonus applies to the first $500 worth of purchases you make during the first three months of account opening. Furthermore, you will get 5% cashback on $6,000 worth of gas station purchases during the first year. Chase Freedom Unlimited® cashback credit card offers don’t stop there. You can also get 5% money back on travel purchases through Chase Ultimate Rewards®. There is also 3% cashback on dining, including takeout and applicable delivery services. As a cardholder, you will earn 3% cashback on drugstore purchases and 1.5% on all other purchases. And what’s better? Once you sign up for and hold an active Chase Freedom Unlimited® cashback credit card, you can invite your friends and get $100 on every qualifying sign-up.
Chase Freedom Unlimited® Cashback Credit card pros
- Chase Freedom Unlimited® offers a 0% introductory APR that lasts for 15 months. After that, you will get a low variable APR of 14.99%-23.74%.
- Another benefit of Chase Freedom Unlimited® is the zero annual fees. You won’t have to pay a yearly credit card fee as a cardholder, getting the most out of your cashback.
- There is no minimum to redeem your Chase Freedom Unlimited® rewards, and there is no reward expiry—you can accumulate your rewards for as long as your credit card is active.
- And the most vital of all is the round-the-clock security against fraud.
Chase Freedom Unlimited® cons
- Chase Freedom Unlimited® charges 3% or $5—whichever is more significant—on balance transfers during the first sixty days. After that, the fee is 5% or $5 on the balance transfer.
- There is also a 3% on abroad transactions and other fees, including up to $40 on late payment.
2. Alliant Visa® Signature—Best Cashback Credit Card for Alliant Credit Union Members
Do you have an Alliant Credit Union account? You can easily qualify for the Alliant Visa® Signature cashback credit card, which offers 2.5% cashback on purchases. Typically, you get 2.5% on purchases of up to $10,000, and any amount above this figure will earn you 1.5% cashback. And this means that the card works well if you’re a big spender. This cashback credit card is excellent for a zero-annual-fees card and zero fees on foreign transactions.
Alliant Visa® Signature pros
- Alliant Visa® Signature doesn’t charge annual fees.
- Zero fees on foreign transactions
- Straightforward unlimited rewards with zero categories to track
- Protection against fraud is a guarantee.
Alliant Visa® Signature Cons
- Alliant Visa® Signature cashback credit card is only available for Alliant Credit union members.
- They charge 3% on each balance transfer transaction.
3. Citi® Double Cash Card—Best Cashback Credit Card for No Limits on Cashback Earnings
Citi® Double Cash Card is an ideal credit card to earn 2% cashback on eligible purchases. Typically, you get double rewards when you use Citi® Double Cash Card—earn 1% money back on all purchases and an additional 1% when you pay your balances. Additionally, Citi® Double Cash offers 0%APR for the first 18 months. You will earn cashback in the form of ThankYou® Points that you can convert into statement credit, check, or direct deposit. The reward structure remains 1% on purchases and 1% on bill payments.
Citi® Double Cash Card Pros