This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
Let’s talk cash-back credit cards. Many of my friends and family members want to know how I travel so much, but when I start explaining the various strategies of multiple credit cards, transferable points and online shopping portals, their eyes inevitably start to glaze over. Fortunately, many card issuers provide simpler reward options, so today I want to go over the top cash-back credit cards.
Many of the best travel rewards credit cards allow you to earn cash back on your purchases, but you’re usually forgoing better value redemptions to do so. So in this guide, we mainly consider cash-back credit cards where getting cash back is the redemption that provides the best return. Let’s get into the details of each of our top recommendations.
The Best Cash-Back Cards in the Most Popular Spending Categories:
- Flat-rate cash back: Chase Freedom Unlimited (1.5%, 3% on first $20,000 spent in first year), Citi Double Cash Card (2%, 1% when you buy and 1% as you pay), Capital One Quicksilver Cash Rewards Credit Card (1.5%), Bank of America Premium Rewards credit card (1.5x points), Discover it® Miles (1.5%, matched first year)
- Dining: Capital One Savor Cash Rewards Credit Card (4%), Uber Visa Credit Card (4%)
- Travel: Wells Fargo Propel American Express® Card (3%), Uber Visa Credit Card (3%)
- Gas: Blue Cash Preferred® Card from American Express (3%)
- Grocery stores: Blue Cash Preferred Card from American Express (6%, on up to $6,000 per year)
- Purchases that might need shopping protections: Citi Double Cash Card (2%; 1% when you buy, plus 1% as you pay)
- Office supplies: Ink Business Cash Credit Card (5%, on up to $25,000 in combined spending per year)
- Select streaming services: Wells Fargo Propel American Express® Card (3%)
- Rotating bonus categories: Chase Freedom (5%*), Discover it® Cash Back (5%*, matched first year)
- Flexible bonus categories: U.S. Bank Cash+ Visa Signature Card (5% and 2%**), Bank of America Cash Rewards credit card (3%***)
*Requires enrollment to earn 5% cash back on up to $1,500 in purchases in that quarter’s category.
**Requires selection of bonus categories. You’ll earn 5% on your first $2,000 in purchases each quarter in two categories you choose. There’s no limit on 2% earning.
***Requires selection of a bonus category. You only earn 3% on purchases each quarter in your chosen category until you’ve spent $2,500 on your chosen category, grocery store and wholesale club purchases.
Some issuers market options like the Barclaycard Arrival Plus World Elite Mastercard as cash-back cards. However, the most valuable redemption for your miles on this card is a statement credit that covers a travel expense. Since redeeming miles for straight-up cash back isn’t the best option, I’ve left these cards off the list.
Likewise, some credit cards have specific membership requirements. The following cards can be good options, but I’ve left them off this list due to their membership requirements:
- Fidelity Rewards Visa Signature Card: 2% on all purchases with no annual fee (must have specific Fidelity account)
- Alliant Cashback Visa Signature Credit Card: 3% on all purchases the first year with a waived annual fee, then 2.5% in subsequent years with a $99 annual fee (must be an Alliant Credit Union member)
- Costco Anywhere Visa Card by Citi: 4% on gas (up to $7,000 per year; then 1% thereafter), 3% restaurants and travel and 2% at Costco with no annual fee with Costco membership (must have Costco membership, must visit Costco location to redeem annual cash-back reward, may need to make a purchase at Costco to obtain the cash back reward)
- Sam’s Club Mastercard: 5% on gas (up to $6,000 per year, then 1% thereafter) and 3% on dining and travel with no annual fee (must have a Sam’s Club membership, must visit Sam’s Club location to redeem, cash back capped at $5,000 annually)
- USAA Cashback Rewards Plus American Express® Card: 5% on the first $3,000 on combined gas and US military base purchases annually and 2% on the first $3,000 on grocery purchases annually with no annual fee (must be a USAA member)
How to Choose a Cash-Back Credit Card
What things should you look for when you’re comparing credit cards that offer cash back? Here are some factors to consider:
- Earning rates: How much cash back will you earn? Is it consistent across all purchases, or does the card restrict the best rates to specific types of purchases? Since cash back by definition provides you with money to go back in your wallet, there isn’t any way to truly “maximize” the points or miles you earn. Instead, be sure to evaluate the exact earning rates compared to your typical spending patterns.
- Ease of redemption: Not all cash-back cards are created equal when it comes to actually getting the cash in your hands or bank account. Some post rewards automatically to your statement, while others earn you points/miles that can then be redeemed for cash back or for statement credits to offset specific purchases. Be sure to read the terms and conditions of the rewards program carefully so you know how (and when) you’ll actually put your hands on the money.
- Additional perks: A third factor involves the additional perks provided on the card. Does it incur foreign transaction fees? What about coverage and added protection for your purchases or trips? These benefits can add significant value to a card.
- Annual fee: A final aspect to consider is any possible annual fee. The majority of the cards below don’t charge an annual fee, but there are a handful of cash-back cards that do. It’s critical to crunch the numbers to see if the annual fee is offset by the earning rates on the card.
What Is the Best Cash-Back Credit Card for You?
Given these factors, it can be quite challenging to determine if a card would make a good addition to your wallet. As a result, I’d recommend using the process of elimination. Start by looking at the four factors above and figure out which is most important to you. Then, start whittling away at the contenders. If you abhor annual fees, cross off cards that require an upfront investment. If you crave simplicity, ignore cards with confusing rotating bonus categories or convoluted redemption schemes. By focusing in on the perks that mean the most to you, you’ll be able to quickly narrow the list down to one or two contenders to earn a spot in your wallet.
So, which cash-back cards should be included on your initial list?
Welcome bonus: 3% cash back on the first $20,000 you spend in your first year
The Chase Freedom Unlimited normally offers 1.5% cash back on all purchases, which isn’t bad for non-bonus category spending. And, a new sign-up bonus was recently added that will provide 3% cash back on the first $20,000 you spend in your first year. If you spend $20,000 in your first year, this bonus is worth $300.
Like the Freedom, the Freedom Unlimited’s points are usually worth 1 cent apiece toward cash back — but become more valuable when paired with a card that accrues Ultimate Rewards points. This is because then you can redeem your points for travel at a better rate or transfer them to partners for potentially even more value. Since TPG values Chase Ultimate Rewards points at 2 cents each, you’ll approximately double your return if you also hold a card that earns Ultimate Rewards points. Although the Freedom Unlimited doesn’t have an annual fee, it does impose a 3% foreign transaction fee. See our full card review for more information.
Welcome bonus: $500 back after you spend $3,000 in the first three months
The Capital One Savor Cash Rewards Credit Card is a great choice for eating out as well as for purchasing tickets to a variety of events due to its 4% back on dining and entertainment. Plus, the card offers 2% back at grocery stores and 1% back on everything else.
The card does have a $95 annual fee, but it is waived the first year. There are no foreign transaction fees, plus the card features extended warranty protection and price protection. See our full card review for more information.
Welcome bonus: 30,000 points (worth $300) after you spend $3,000 in the first three months
The Wells Fargo Propel American Express® Card effectively earns cash back, since points are worth 1 cent apiece toward statement credits, travel, gift cards or charity donations. You’ll earn 3x points on dining, travel (from Uber to gas stations to flights to hotels) and select streaming services, and 1 point per dollar on everything else.
This is a relatively straightforward card with no annual fee and no foreign transaction fees. But, it does stand out for offering cellphone protection, and the ability to boost the value of your point redemptions toward airfare to 1.75 cents per point if you have the Wells Fargo Visa Signature® Card and spend at least $50,000 on it in a year. In that case, you’re effectively getting up to 5.25% back on your spending, which is very solid for a card with no annual fee. See our full Wells Fargo Propel review for more information. (The information for the Wells Fargo Visa Signature Card and Wells Fargo Propel American Express Card have been collected independently by ThePointsGuy. The card details on this page have not been reviewed or provided by the card issuer.)
Welcome bonus: $500 cash back after you spend $3,000 on purchases in the first three months after account opening
If you’re looking for a business card that offers solid value from a cash-back standpoint, the Ink Business Cash Credit Card is a terrific option. You’ll earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on phone, internet and cable services each account year. You’ll also earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account year plus 1% cash back everywhere else. Plus, the card has purchase protection, extended warranty protection and primary car rental coverage when renting a vehicle for business purposes.
All of this is available without an annual fee, though there is a 3% foreign transaction fee for purchases made abroad. However, if you have a a card that accrues Ultimate Rewards points like the Ink Business Preferred Credit Card, Chase Sapphire Reserve or Chase Sapphire Preferred Card, you can actually convert the cash-back points from the Ink Cash to much more valuable Ultimate Rewards points. This would essentially double the value you’d get from your spending, as TPG pegs the value of these points at 2 cents apiece. See our full card review for more information.
Welcome bonus: $200 back after you spend $1,000 in purchases on your new card in your first three months
Another card with some intriguing bonus categories is the Blue Cash Preferred Card from American Express. You’ll get 6% cash back on purchases at US supermarkets (on up to $6,000 of spending each reward year, then 1%) plus 3% cash back at US gas stations, and 1% cash back everywhere else. These earnings accumulate as reward dollars and can be redeemed for statement credits when you have a rewards balance of at least $25.
The card has a $95 annual fee (See Rates & Fees), but offers return protection, extended warranty protection and purchase protection. It charges a 2.7% foreign transaction fee (See Rates & Fees) though, so while it’s a great option for use in the US, you’d be better off with some of the other options if you frequently travel outside the country.
Welcome bonus: $150 cash back after you spend $500 on purchases in your first three months from account opening.
The Chase Freedom offers a standard 1% cash back on all purchases, which (obviously) isn’t that exciting. However, this earning rate jumps to 5% cash back on up to $1,500 in combined purchases each quarter at merchants in the card’s quarterly bonus categories. Previous quarters have awarded bonus points on mobile wallets, gas stations and cable purchases or Walmart and department stores, giving you a variety of options throughout the year.
The Freedom’s rewards actually accrue as points that are worth 1 cent apiece toward cash back; you can choose to deposit the cash into a bank account or apply it as a statement credit. However, this card becomes even more lucrative when it’s paired with a card that accrues Ultimate Rewards points, like the Chase Sapphire Preferred Card. If you link that card to the same Chase online account as the Chase Freedom, you can actually transfer the cash-back points from the Freedom to convert them into much more valuable (and transferable) Ultimate Rewards points. While the conversion is a manual process, it essentially means that you can earn 5 Ultimate Rewards points per dollar spent at a variety of merchants throughout the year.
Since the bonus categories are capped at $1,500 each quarter, here’s a comparison of how much you can earn if you max out purchases at these merchants each year:
- With an Ultimate Rewards card: $1,500 per quarter x 4 quarters x 5 points per dollar = 30,000 Ultimate Rewards points (worth $600 based on TPG’s most recent valuations)
- Without an Ultimate Rewards card: $1,500 per quarter x 4 quarters x 5% cash back = $300
As you can see, holding a card that earns Ultimate Rewards points doubles your return. The rewards never expire as long as your account is open and active, and the Freedom carries no annual fee. The card has purchase protection and extended warranty protection, but also has a 3% foreign transaction fee. See our full card review for more information.
Welcome bonus: $150 after you spend $500 on purchases within the first three months
A great option for traveling outside the US is the Capital One Quicksilver Card, as it waives foreign transaction fees. The great thing about this card is the simplicity. You don’t need to worry about bonus categories or spending thresholds. It’s just a 1.5% return on all your spending with no annual fee. You also have the flexibility of getting your cash back as a statement credit or check, and you can do this on demand or on a specific schedule that you dictate. The card offers extended warranty protection as a benefit.
One of the simplest and most rewarding cash-back cards out there is the Citi Double Cash Card. This card essentially gives you two opportunities to earn cash back: 1% when you buy and then another 1% as you pay. You only need to make the minimum payment each month to earn the second reward, but remember that paying your balance in full is always strongly recommended (and was #1 on my list of 10 commandments for travel rewards credit cards).
That’s it. There are no categories to keep track of and no bonuses to sign up for. To actually get your hands on the cash, you have to wait until your cash rewards balance reaches $25. You then have four options:
- Request a check for at least $25 up to the total cash rewards balance at the time you redeem.
- Redeem for a statement credit to your card account for at least $25 up to the total cash rewards balance at the time you redeem.
- Redeem for a gift card in set denominations from the available inventory.
- Redeem for a credit to your linked Citi savings or checking account or to a checking account from which you have paid a Citi Credit Card bill at least two times.
Unfortunately, one of the biggest drawbacks of the card is a lack of a sign-up bonus, and it also charges a 3% foreign transaction fee. Still, 2% cash back on everyday purchases with no limits can be a pretty solid value proposition (not to mention a very simple way to get started in the points and miles hobby) and the shopping protections on this card are excellent for a card with no annual fee. See our full card review for more information.
Discover it Cash Back
Another great cash-back option is the Discover it Cash Back. It (pun intended) doesn’t get a ton of press since it doesn’t have a maximization option like the Chase Freedom, but the card does offer a standard earning rate of 1% cash back on all purchases. Also, enroll every quarter to earn 5% cash back on up to $1,500 in purchases made in various categories throughout the year.
What makes this card especially appealing is the promotion for new card holders. During your first year of card membership, Discover will match cash back on all purchases. This bumps the standard earning rate to up to 2% and the bonus category earning rate to up to 10%, though they will fall back down to the regular 1% and 5% levels after your first 12 months. This is (essentially) a sign-up bonus, though exactly how rewarding it is depends entirely on how much you spend.
You also have a number of options for putting your hands on the rewards:
- Gift cards or instant eCertificates from partners — starting at $20
- Charitable donation to select charities — starting at a penny
- Credit to your account — starting at a penny
- Electronic deposit into any account you designate — starting at a penny
- Pay with cash-back bonus at select online retailers — starting at a penny
This card carries no annual fee and also imposes no foreign transaction fees, making it a great option if you’re looking to keep earning cash-back when you travel abroad.
The Discover it® Miles card provides a modest 1.5 miles per dollar spent on all types of purchases. It’s marketed as a travel rewards credit card, but all types of redemptions — from travel statement credits to cash deposits into an account of your choice — are worth 1 cent per point. So, you’ll earn 1.5% cash back on all purchases.
Although the card doesn’t offer a sign-up bonus, it matches cash back on all purchases you make within your first year of card membership. This temporarily increases your standard earning rate to 3%, but it will fall back to 1.5% after your first 12 months.
The card has no annual fee and no foreign transaction fees, so it’s a good choice for earning cash back on your everyday purchases while traveling abroad.
Welcome bonus: 50,000 bonus points (worth $500) after you make at least $3,000 in purchases in the first 90 days of account opening
The Bank of America Premium Rewards credit card offers 2x points on travel and dining purchases and 1.5x points on all other purchases. The card has a $95 annual fee, but no foreign transaction fees and it features benefits that are usually only found on higher annual fee cards: an annual $100 airline incidental statement credit for qualifying purchases, a credit for TSA PreCheck or Global Entry every four years and travel insurance protections to assist with trip delays, cancellations and interruptions, baggage delay inconvenience, lost luggage and emergency evacuation and transportation.
When your points balance is 2,500 points or more, you can redeem your points for cash rewards. Each point redeemed is worth 1 cent when redeemed for the following types of cash rewards:
- A statement credit
- An electronic deposit into a Bank of America checking or savings account
- A contribution to an eligible Cash Management Account with Merrill Lynch Wealth Management or Merrill Edge, or College 529 savings account held at Merrill Lynch
See our full card review for more information.
Welcome bonus: $200 cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
The Bank of America Cash Rewards credit card offers 3% cash back in the category of your choice (gas, online shopping, dining, travel, drug stores or home improvement and furnishings) and 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined bonus category purchases each quarter. Subsequent purchases each quarter in these categories, as well as all other purchases, earn 1%. You can change your 3% category once a month and Preferred Rewards clients get a 25-75% rewards bonus on every purchase — which means you can get up to 5.25% cash back on the category of your choice.
You can redeem cash rewards for a statement credit, check, deposit made directly into a Bank of America checking or savings account or a qualifying Cash Management Account or 529 account. Some redemption options have a $25 redemption minimum, but redemptions for an electronic deposit into a Bank of America checking or savings account, into a qualifying Cash Management Account or for a statement credit don’t have a minimum redemption amount.
Uber Visa Credit Card
Welcome bonus: 10,000 bonus points (worth $100) after spending $500 on purchases in the first 90 days
TPG himself broke up with Uber last year, but The Uber Visa Credit Card can still be a good option for you. The Uber Visa card offers 4x points on dining, 3x points on hotels and airfare, 2x points for online purchases and 1x points on everything else. There’s no annual fee or foreign transaction fees, but the card offers mobile phone protection and a $50 credit for online subscription services when you spend $5,000 or more on your card per year.
Each point is worth 1 cent. Points can be redeemed for Uber Cash credits (minimum $5), cash back (minimum $25) or gift cards (minimum $25).
Welcome bonus: $150 bonus after making $500 in eligible net purchases within the first 90 days of account opening
The U.S. Bank Cash+ Visa Signature Card offers 5% on your first $2,000 in combined eligible net purchases each quarter on two categories you choose from a selection of categories. You’ll also earn 2% on one everyday category that you can choose from a selection of categories. You’ll have to select your 5% and 2% categories each quarter — if you don’t, you’ll only earn the 1% that you’ll earn on all other purchases. There’s no annual fee, which is pretty amazing considering you’ll earn 5% on some of your purchases.
Summary of the Best Cash-Back Credit Cards
Here’s a summary of the best cash-back credit cards we just went through, including bonus categories, general spending cash back rates, annual fee and other important information.
|Card||Bonus Rates||Flat Cash-Back Rate||Annual Fee|
|Chase Freedom Unlimited||1.5% on all purchases***||1.5%||$0|
|Capital One Savor Cash Rewards Credit Card||4% on dining and entertainment; 2% at grocery stores||1%||$95 (waived the first year)|
|Wells Fargo Propel Amex||3x points on dining, travel and select streaming services (points are worth 1 cent apiece)||1%||$0|
|Ink Business Cash Credit Card||5% at office supply stores*; 2% on gas and restaurants**||1%||$0|
|Blue Cash Preferred Card from American Express||6% on purchases at US supermarkets (on up to $6,000 of spending each reward year, then 1%); 3% at US gas stations||1%||$95|
|Chase Freedom||5% on up to $1,500 in purchases in rotating categories each quarter||1%||$0|
|Capital One Quicksilver Card||1.5% on all purchases||1.5%||$0|
|Citi Double Cash Card||2% on all purchases (1% when you make purchases, 1% when you pay your bill)||2%||$0|
|Discover it® Cash Back||5% cash back on up to $1,500 in purchases in rotating categories each quarter upon enrollment; Discover will match cash-back for first year||1%||$0|
|Discover it® Miles||1.5% cash back on all purchases; Discover will match cash-back for first year||1.5%||$0|
|Bank of America Premium Rewards credit card||2x points on travel and dining (points are worth 1 cent apiece)||1.5x points||$95|
|Bank of America Cash Rewards credit card||3% in the category you choose and 2% cash back at grocery stores and wholesale clubs (on your first $2,500 in purchases each quarter in these bonus categories)||1%||$0|
|Uber Visa Credit Card||4x points on dining; 3x points on hotels and airfare; 2% on online purchases (points are worth 1 cent apiece)||1%||$0|
|U.S. Bank Cash+ Visa Signature Card||5% on your first $2,000 in purchases each quarter in two categories you choose; 2% on your choice of another category you choose||1%||$0|
*On the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account year.
**On the first $25,000 spent in combined purchases at gas stations and restaurants each account year.
***3% on the first $20,000 in spend your first year. After that, 1.5% on all purchases.
My mother-in-law believes that “cash is king” and doesn’t want to waste her time with travel rewards programs. While I do disagree with her immediate dismissal of the points and miles world, there’s no doubting that earning cash back on your credit card can be simpler and easier to quantify. Hopefully this list has given you some food for thought if you’re just getting started in the hobby or plan on adding a cash-back card to your wallet.
What to learn more about each of the cash back cards described in this article? Check out the links below:
- Chase Freedom Unlimited
- Capital One Savor Cash Rewards Credit Card
- Wells Fargo Propel American Express® Card
- Ink Business Cash Credit Card
- Blue Cash Preferred® Card from American Express
- Chase Freedom
- Capital One Quicksilver Cash Rewards Card
- Citi Double Cash Card
- Discover it® Cash Back
- Discover it® Miles
- Bank of America Premium Rewards credit card
- Bank of America Cash Rewards credit card
- Uber Visa Credit Card
- U.S. Bank Cash+ Visa Signature Card
Additional reporting by Katie Genter.
Featured photo by Eric Helgas for The Points Guy.
*The information for the Wells Fargo Propel American Express® 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.
For rates and fees of the Blue Cash Preferred, please click here.
This is The Points Guy’s permanent page with the best currently available credit cards for cash back, so you can bookmark it and check back regularly for updates. Keep in mind you may see some reader comments referring to older offers below.
Know before you go.
News and deals straight to your inbox every day.
TPG'S BONUS VALUATION: $600
CARD HIGHLIGHTS: No annual fee + earn 1.5% cash back on all purchases after you meet the $20,000 cap
- New Offer! Double Cash Back: Earn 3% cash back on all purchases in your first year up to $20,000 spent. After that earn unlimited 1.5% cash back on all purchases.
- 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 17.24-25.99%. Balance transfer fee is 3% of the amount transferred, $5 minimum
- No minimum to redeem for cash back
- Cash Back rewards do not expire as long as your account is open
- Free credit score, updated weekly with Credit Journey℠
- No annual fee