Should you get a flat-rate or bonus-category cash-back card?
Editor's Note
Cash-back credit cards appeal to a wide range of cardholders for one simple reason: Their value is easy to understand. Every purchase earns a clear, predictable rebate, without the guesswork that often comes with travel rewards cards.
That said, choosing the right cash-back card isn't always straightforward. At a high level, cards fall into two camps: flat-rate cards that earn the same percentage on nearly all purchases, and bonus-category cards that offer elevated rewards in specific spending categories.
Neither option is inherently better or worse. The best fit depends on your spending habits and how much effort you're willing to put into maximizing rewards.
So which option is right for you? Below, we'll break down the key factors to consider when deciding whether a flat-rate or bonus-category cash-back card makes the most sense.
Related: Cash back vs. travel rewards: How to choose a credit card
Our top cash-back card picks at a glance
Best flat-rate cash-back cards
- Citi Double Cash® Card (see rates and fees): Earns unlimited 2% cash back (1% when you buy, 1% when you pay) with no annual fee.
- Wells Fargo Active Cash® Card (see rates and fees): A strong 2% flat-rate option, with a welcome bonus.
- Chase Freedom Unlimited® (see rates and fees): A hybrid option that earns a solid 1.5% cash back on all purchases while also offering elevated rates in popular categories like dining, drugstores and travel.
Best bonus-category cash-back cards
- Blue Cash Preferred® Card from American Express: A top choice for households with high grocery spending, earning 6% cash back at U.S. supermarkets (on up to $6,000 per year) and elevated rates on select streaming subscriptions, U.S. gas stations and transit.
- Chase Freedom Flex® (see rates and fees): Ideal for earning elevated rewards through quarterly rotating bonus categories (activation required).
- Bank of America® Customized Cash Rewards credit card: Best for cardholders who want to choose their own bonus category, earning 6% cash back (for the first year, then 3%) on a selection of categories and 2% cash back at grocery stores and wholesale clubs.
- Citi Custom Cash® Card: Earns 5% cash back on your top eligible spending category each billing cycle (up to $500), then 1% on everything else.
The information for the Citi Custom Cash Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: The best cash-back credit cards to add to your wallet
Which type of cash-back card should you get?
Do you want to think about which card to use for each purchase?
If you're looking for something simple and don't want to spend time deciding which card to swipe with each purchase, a flat-rate cash-back card is likely the better fit. These cards earn the same cash-back rate on nearly all purchases, which means you can use one card everywhere without worrying about categories, activations or earning caps.
If you don't mind keeping track of your spending and are comfortable using different cards for different purchases, it's worth continuing through the decision process to see whether a more specialized card could earn you more.
Related: How do cash-back credit cards work?
Do you spend heavily in 1 or 2 major categories, such as groceries, dining or gas?
If a large portion of your monthly spending consistently falls into one or two purchase categories, a bonus-category cash-back card could earn you more than a flat-rate option. These cards offer elevated rewards in specific areas, allowing you to maximize cash back on the purchases you make most often, even if the rate on other spending is lower.
If your spending is spread fairly evenly across many categories, a flat-rate cash-back card may be the better choice. Many common expenses, such as utility bills, insurance payments, clothing or home improvement, don't qualify for bonus categories, making them ideal for flat-rate rewards.
When there isn't a clear spending pattern to optimize, earning the same rate on every purchase can provide more consistent value overall.
Related: The pros and cons of cash-back credit cards
Are you willing to activate rotating categories or track spending caps?
If you're comfortable activating bonus categories each quarter and keeping an eye on spending limits, a cash-back card with rotating bonus categories may be a good fit. These cards often offer some of the highest cash-back rates available, but they require ongoing attention to ensure you're earning the maximum rewards.
If you'd rather avoid activation requirements or tracking caps, consider a card with fixed or customizable bonus categories. These cards offer higher rewards in select areas without the extra steps, making them a more hands-off alternative to rotating-category cards.
If working through these questions already feels like more effort than you'd like, that's a strong sign a flat-rate cash-back card is the right choice.
Related: Are cash-back credit cards worth it?
Bottom line
There's no single best cash-back card for everyone, but the wide range of options makes it easier to find one that fits your spending style. For those who want to take a "set it and forget it" approach, a flat-rate cash-back card will probably work best for you. However, those willing to manage a maximization strategy might prefer a bonus-category credit card.
If you want the best of both worlds, pairing a bonus-category card with a flat-rate card can help you earn more cash back across your entire budget — with relatively little extra effort.