Best Cash Back Credit Cards for Everyday Spending Show
Best OverallChase Freedom Flex℠Up to 5X Reward Rate Earn 5% cash back in categories that rotate quarterly on up to $1,500 when enrolled, 5% on travel purchased throughRead More Regular APR17.99% - 26.74% Variable Credit ScoreExcellent, Good (700 - 749) Why We Picked It This card has the brawn to handle just about all of your credit card spending needs without an over-inflated price tag. The card has an annual fee of $0, yet comes with a pumped-up earnings structure that covers a wide swath of expenses including travel, drugstores and dining plus rotating quarterly bonus categories in areas many households are likely to find appealing. Pros & Cons
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Runner-UpChase Freedom Unlimited®Up to 5X Reward Rate Earn 5% on Chase travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores and 1.5% on all otherRead More Welcome BonusUp to $300 cash back Regular APR17.99% - 26.74% Variable Credit ScoreExcellent, Good (700 - 749) Why We Picked It A good overall spending card that allows you to hold a balance on new purchases with a low introductory APR, pay no annual fee, and still earn at least 1.5% cashback on all purchases Pros & Cons
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Best Cash-Back Card for Intro Purchase APRCapital One SavorOne Cash Rewards Credit CardUp to 8% Cash Back Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® andRead More Regular APR17.99% - 27.99% (Variable) Credit ScoreExcellent, Good (700 - 749) Why We Picked It The Capital One SavorOne card is a perfect cash back credit card for those who spend a lot at restaurants, grocery stores and on entertainment. With its 3% cash back rate in those categories, it's a win for socialites that don't want to pay for an annual fee. Pros & Cons
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Best Flat-Rate Cash-Back CardWells Fargo Active Cash® CardUnlimited 2% Rewards Rate Earn unlimited 2% cash rewards on purchases Welcome Bonus$200 Cash Rewards Regular APR18.74%, 23.74%, or 28.74% variable APR Credit ScoreExcellent, Good (700 - 749) Why We Picked It The Wells Fargo Active Cash offers an unlimited 2% cash rewards rate on purchases and charges no annual fee. This puts it in competition with the best flat-rate cash back cards on the market. Pros & Cons
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Best Cash-Back Card for Rotating CategoriesDiscover it® Cash BackUp to 5% Reward Rate Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations,Read More Welcome BonusCashback Match™ Regular APR14.99% - 25.99% Variable APR Credit ScoreExcellent/Good (700 - 749) Why We Picked It For moderate spenders who are willing to activate the 5% rotating categories and track the quarterly spending cap, this no-annual-fee card can deliver tidy rewards outside of its ongoing 1% earning rate. Pros & Cons
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Best Cash-Back Card for Balance TransfersDiscover it® Balance TransferWelcome BonusCashback Match™ Regular APR14.99% - 25.99% Variable APR Credit ScoreGood/Excellent (700 - 749) Card Details
Best Cash-Back Card For Gas and GroceriesBlue Cash Preferred® Card from American ExpressUp to 6% Reward Rate Earn 6% cash back at U.S. supermarkets, on up to $6,000 per year in purchases (then 1%); Earn 6% cashRead More Annual Fee$0 intro annual fee for the first year, then $95 Regular APR17.74%-28.74% Variable Credit ScoreExcellent/Good (700 - 749) Why We Picked It Big spenders at US supermarkets and road warriors who frequently spend at US gas stations or transit like taxis, rideshares or transit can rack up impressive cash back rewards. Pros & Cons
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Here's a summary of Best Cash Back Credit Cards
Best Cash Back Credit CardsMethodologyForbes Advisor combed through the profiles of dozens of cash-back credit cards. We focused on major banks and standout credit cards at lesser known banks with online accessibility. We looked for credit cards outperforming other cards in terms of cash-back rates and categories, fees, welcome bonus and other rewards and features. What Is Cash Back on a Credit Card?A cash-back credit card allows cardholders to earn a percentage back on eligible credit card spending. Typically, a cardholder can redeem rewards for money, issued as a statement credit, a check sent via mail or deposited directly into a qualifying bank account. Many types of cards offer cash-back rewards, including ones earning the same flat rate on everything you buy, ones offering tiered rewards where certain areas of spending earn higher rewards than other categories and cards offering elevated rewards in specific categories that change quarterly. Read More: How To Choose a Cash-Back Credit Card How Does a Cash Back Credit Card Work?Every time you make a purchase with your card, you’ll earn a percentage back on your spending. The exact amount you’ll earn depends on your particular card’s terms. Those earnings are accumulated in your card’s rewards account and you can redeem the rewards according to your issuer’s requirements. Some cards allow you to redeem your cash earnings in any amount at any time while others require a minimum balance to cash out. The exact way in which you’ll receive your money also varies by card, with some allowing you to receive a reward as a statement credit against your balance and others also allowing you to receive cash back as a deposit or check. Why Do Credit Cards Give Cash Back?Card issuers offer cash-back rewards to incentivize use of a card. Though benefits including fraud protection, convenience and the ability to easily build and maintain good credit history are all a standard part of credit cards, earning cash back allows a consumer to take a cut of the transaction fees charged to vendors. Transaction fees generate upward of $83 billion in revenue for banks, card issuers and card networks. These fees, though only typically 2% to 4% of a transaction amount, are split among the banks, card issuers, fintech companies and card networks involved in facilitating the purchase. With cash back, the customer is effectively cut in on the transaction fee. If a transaction fee is, for example, 3%, issuers may provide 1.5% cash back to the consumer as an incentive to apply for and use the card. Typically, rewards cards are used to attract more qualified customers—those with better credit and higher income. Though the issuer and its associates earn less on each transaction, it also assumes less risk by attracting a customer less likely to default on any debt. The issuer and its associates may also earn more overall because the higher-income customer is incentivized to spend more using the card in order to earn more rewards. Types of Cash-Back Credit CardsGenerally, three kinds of cash-back cards rule the market: flat-rate, tiered-rate and rotating category credit cards. Flat-Rate Credit CardsFlat-rate cash-back credit cards earn the same percentage back on your eligible spending, typically anywhere from 1% to 2%, without any spending caps or category restrictions. Tiered-Rate Credit CardsTiered rewards cash-back cards earn different amounts back in different areas of spending. For example, some cards offer elevated rewards on dining or travel and a lower rate on other areas of spending. Rotating Category Credit CardsWith rotating bonus category cards, you will earn higher-than-average rewards, typically about 5%, on specific areas of spending up to a quarterly maximum. After that, the rewards rate will drop to 1%. All other purchases on the card typically earn 1% cash back. Bonus categories typically change every three months. Factors to Consider When Choosing a Cash-Back CardThe best cash-back credit card is the one that best fits your lifestyle and spending habits. The right cash-back card for someone else may not be the right cash-back card for you. Forbes Advisor aims to help you by identifying what each cash-back card is best for, but you should always do the math yourself and consider not only how much cash back you could earn but also how you might use the other card benefits. After you’ve identified how much you spend in different areas and what other card features could benefit you, you’re ready to compare credit cards and shop for the best one for you. As you compare cards and credit card issuers, there are some things that you should incorporate into your evaluations.
How To Get Cash Back From a Credit CardCashing in on cash back you’ve earned from all those laborious swipes, taps and chip inserts will vary from issuer to issuer, but typically to redeem cash back you’ll make a request using an issuer’s app or website after you’ve logged into the mobile or online banking system. Some accounts redeem cash back automatically. You may be able to choose how your cash back is redeemed: as a statement credit, as a deposit to a qualifying bank account or as a check the issuer will mail to you. Some cash-back cards also allow you to redeem cash back by applying it to purchases. Pros and Cons of Cash Back Credit CardsCash-back credit cards are an excellent way to earn rewards with every qualifying purchase on your credit card. There’s generally no learning curve required and you can claim your rewards with a few clicks in your online account—sometimes they’re even provided as a statement credit automatically. You can also easily calculate your earnings so you know precisely what to expect. One con of a cash-back credit card is that there’s an upper limit on your earnings. Some other types of credit cards may feature higher earning rates than the typical 1% to 2% on cash back cards, assuming you are willing to put in the effort to learn about the associated points or miles program. Another con of cash-back cards is that, compared to specialty rewards cards, there are usually fewer built-in benefits. Frequently, cash-back cards focus only on the rewards rather than travel benefits, statement credits toward select purchases or other perks. Finding the Best Cash Back Card for YouThere are many great cash back cards on the market, but the card that will earn you the greatest rewards depends on your spending habits. Before committing to a card, take a look at your budget and see where you spend most frequently. Then choose the card that best fits your lifestyle. How to Make the Most of Your Cash Back Credit CardLeveraging multiple cash-back cards can mean earning elevated rewards across multiple bonus categories. For instance, you could earn a card rewarding gas purchases at 3% cash back and another earning 4% cash back on groceries and yet another earning 2% cash back on all other purchases. Where the first two cards likely only reward non-bonus category spending with 1% cash back, you can pair multiple cards to reward the major spending you do across all categories. Beware: Managing multiple credit card accounts means more responsibility, including more monthly statements, more minimum payments, more fees and more risk of accrued interest. Be careful not to shoulder too much. Read More: How Many Credit Cards Should I Have? Alternatives to Cash-Back Credit CardsDepending on your preferred redemptions, other types of credit card rewards might be more valuable to you. Cash Back vs. Travel RewardsTravel rewards, such as airline miles or hotel points, can be strategically redeemed to get outsized value. Every travel program has sweet spots where a single point or mile could be worth five or ten cents each when redeemed strategically. However, this assumes you’re well-versed on the program’s strengths—and have the flexibility to take advantage of them. Cash back, on the other hand, offers stable value. You don’t have to hunt for the most valuable redemptions and don’t have to worry about getting below-average value. It’s also much simpler and doesn’t require a time investment in order to redeem rewards. Cash Back Vs. Flexible Bank PointsMany card issuers offer proprietary points instead of traditional cash back. These programs, like Chase Ultimate Rewards or Citi ThankYou points, build in flexibility. When you earn credit card points, you can redeem them as cash back (often, but not always, equivalent to 1%) or you can redeem them for other rewards through the program. A common redemption option is to book travel through the points portal to get 25% more value with every point. You may also be able to transfer points to partnering travel loyalty programs, effectively earning travel rewards. Once again, cash back is the easiest and most straightforward option. However, credit card points usually have one or more alternate redemption options that are still relatively simple yet provide a greater return. The flexibility of points is their greatest attribute. To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page. *Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. **Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc. Frequently Asked QuestionsWhere can I get cash back on my credit card?Every card presents cash-back rewards in different ways. Many of them allow you to take your earnings in the form of a statement credit, which reduces the monthly balance you need to pay on your bill. Other cards may instead offer cash back as an electronic deposit to your banking account or a check in the mail. What’s the best cash-back credit card?There’s no one best cash-back credit card for everyone. Your spending habits and preferences determine which card will hold the most reward potential for you. Though many cards may net you more value with bonus categories, welcome bonuses and other benefits, the highest flat-rate cash back can be achieved with the the Alliant Cashback Visa Signature Credit Card*, which earns up to 2.5% cash back with no categories to track on up to $10,000 in purchases each billing cycle with qualifying accounts. All other purchases earn 1.5%, charges no annual fee and requires cardholders meet certain requirements before earning cash back, including membership with the credit union. Is cash back from a credit card taxable?In general, the IRS treats cash-back rewards on a credit card as a discount and not earnings, especially if you take your cash-back rewards as a statement credit on your credit card. This means that your cash-back rewards are not taxable. There is a caveat: If you use your cash-back rewards to pay for a business expense, you can’t deduct the cost of that purchase from your taxes since you used your rewards to purchase the item. In addition, some welcome bonuses are considered taxable income. Be sure to check with your bank or financial institution and a tax advisor to be certain. Which credit card gives the most cash back?There’s no one best cash-back card that will earn the most rewards for everyone. The highest-paying cash back card available today depends on how you spend money and how many cards you want to have. For example, a card might earn 6% cash back up to the first $6,000 in spending at U.S. supermarkets and after that 1%. But if you rarely shop for groceries, you might get more utility out of a card that earns an unlimited 4% cash back on dining and entertainment, 2% on groceries and 1% on all other spending. If you’re looking for the highest paying flat rate cash-back credit card, the Alliant Cashback Visa Signature Credit Card* is hard to top. It earns up to 2.5% cash back with no categories to track on up to $10,000 in purchases each billing cycle with qualifying accounts. All other purchases earn 1.5% and carries a $0 annual fee. You’re required to join Alliant’s credit union to apply for the card. If joining a credit union is unpalatable to you, you routinely spend more than $10,000 a month on your card or you don’t want to pay an annual fee, another option is the Citi® Double Cash Card which earns 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off. Does cash back expire?The expiration date, if there is one, on any cash-back rewards you’ve earned from your card depends on your credit card’s policies. Some cash-back rewards never expire and others may require card activity to keep your rewards from expiring. Check your card’s terms and conditions to make sure you don’t accidentally lose any earnings. In addition, be sure to cash out your rewards before you close a credit card account. Next Up In Credit CardsInformation provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
 Caroline Lupini is the Credit Card and Travel Analyst for Forbes Advisor. She's a credit card enthusiast and digital nomad who has leveraged credit cards to travel around the world for next to nothing, often in style. Prior to working for Forbes, she contributed to other leading publications in the credit cards and rewards space. She would like to visit every country and try as many different local culinary specialties as possible.
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Something went wrong. Please try again later. The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. This compensation comes from two main sources. First, we provide paid placements to advertisers to present their offers. The compensation we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. Second, we also include links to advertisers’ offers in some of our articles; these “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Here is a list of our partners who offer products that we have affiliate links for. What credit cards give you 3% cash back?The best credit cards for at least 3% cash back in major spending categories are:. Everyday Purchases Blue Cash Preferred® Card from American Express.. Travel, Dining & Drugstores Chase Freedom Unlimited®. Dining & Entertainment Capital One Savor Cash Rewards Credit Card.. Rotating Categories Discover it® Cash Back.. Which credit card is best with no charges?Listed below are the best credit cards without annual fee offered by top banks in India.. Which card has 5% cash back?The Chase Freedom Flex℠ Credit Card is a no annual fee cash back card. It lets you earn 5% cash back on a few categories — including rotating bonus categories that you activate each quarter (up to $1,500 in combined purchases each quarter).
What credit card does not charge an annual fee?Best Credit Cards With No Annual Fee of November 2022
Discover it® Cash Back: Best feature: Cash back on everyday purchases. Chase Freedom Unlimited®: Best feature: Flexible cash back rewards. Chase Freedom Flex℠: Best feature: Wide range of cash back rewards. Discover it® chrome: Best feature: Gas cash back.
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Credit cards with cash back rewards and no annual fee
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