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While they often don't get the same hype as some of our favorite travel rewards cards, cash-back cards can hold their own when it comes to deserving a spot in your wallet.
If you've skipped over them in the past, here's why you should give them a chance.
Simple rewards and redemptions
Valuable travel redemptions are great, but finding them can take a lot of research.
With cash-back cards, you simply decide whether you want to receive your cash rewards through a statement credit or bank deposit, depending on the card issuer.
There's no beating cash, which can cover expenses points and miles don't (i.e., bills, food or tour tickets). And beyond travel, you can use your cash-back rewards to cover Christmas presents, a bridesmaid dress or a snazzy new suitcase.
Related: How to redeem cash-back rewards
Competitive earning
A commonly cited drawback of cash-back cards is that they don't earn as much as travel rewards cards. That's generally true, but the disparity isn't as great as you may think.
Consider the earning potential of the Citi Double Cash® Card (see rates and fees) and the Capital One Venture Rewards Credit Card. The Double Cash Card earns 2% back on purchases (1% when you buy and 1% when you pay) or 2 points per dollar spent on all purchases.
Meanwhile, the Venture Rewards earns 2 miles per dollar on most purchases (with select bonuses via Capital One Travel). If you think travel rewards are always more valuable, you may assume it's better to earn 2 Capital One miles than 2% cash back on your dollar.
But if you want to redeem your Capital One miles as a statement credit to cover your travel expenses, you'll redeem them at a flat rate of 1 cent per mile. So the 2 miles that you earn per dollar with your Venture are worth 2 cents; this is the same return you'll get with the Citi Double Cash.
Plus, the Citi Double Cash doesn't carry an annual fee or restrictions around your redemption options. However, the Capital One Venture card has a $95 annual fee.
It's true that Capital One miles can be worth more when you maximize the program's airline and hotel transfer partners. However, it takes time to find these high-value redemptions, and you may want to focus on a simpler reward structure.
In this case, you're much better off earning and redeeming cash back with your Double Cash and simply using it to cover anything you want.
Related: Cash back vs. travel rewards points
Bottom line
Don't mistake cash-back cards' simplicity for mediocrity. Your new favorite card may be the one that earns you some cold hard cash.
Related: How to choose a cash-back card
