Earn More on Everyday Spending

When you take the time to compare the best cash back credit cards, you'll notice they all do things differently. Some offer a flat rate of cash back for every type of purchase, whereas others offer bonus rewards in some categories and a base earning rate on everything else. There are also cash back credit cards that offer a higher rewards rate in categories that rotate every three months, which help consumers maximize their rewards on certain purchases.

Break things down further and you'll find that some come with 0% APR introductory offers and consumer protections like extended warranties. What credit cards have the best cash back rewards and other perks? We break down the best offers below with some expert advice on how to make the most of them.

What Is a Cash Back Credit Card?

Credit cards themselves can be a rectangular piece of metal or plastic, or they can come in the form of a virtual card number. Each credit card has a line of credit consumers can use to charge purchases, and they can opt to pay back their purchases over time or all at once.

Cash back credit cards are the cream of the crop because they let you turn spending into cash back by granting you a percentage of cash back on everything you buy. These rewards can be offered on a flat-rate basis, or come with a flat rate and bonus rewards in specific categories. Many of the best cash back credit cards also have benefits like intro APR offers, consumer protections and travel insurance coverages included.

Another benefit of credit cards is the fact they offer $0 fraud liability coverage. With this protection, consumers aren't on the hook for purchases if a criminal uses their credit card or card number to go on a shopping spree.

What's the catch? Using a credit card isn't free, and most charge a high variable APR on balances you carry from one month to the next.

Avoid credit card interest completely by paying your card's full statement balance by its posted due date each month. Some credit cards also offer 0% APR on purchases, but these offers are only available for a limited time.

Pros

• Convenient way to make purchases in-person or online

• Earn cash back for everything you buy

• Some cards offer intro 0% APR terms for purchases, balance transfers or both

• Many offer guaranteed returns and extended warranties

• $0 liability for fraudulent purchases

• Potential for $0 annual fee

• Build credit for the future

Cons

• High variable interest rates apply

• Some cards charge annual fees

• Potential for overspending and debt

A cash back credit card could be right for you if you want to get something back for each dollar you spend — and if you have the discipline to avoid long-term credit card debt. After all, the high variable rates cards charge more than eclipse the cash back rates they offer. This means that, if you wind up in debt trying to earn more rewards, the interest you pay will far surpass the cash back you earn.

A cash back credit card can also be right for you if you don't want to deal with the complexity of other credit card rewards programs, and especially travel credit card programs. However, for those interested in maximizing cash back, some strategies are still required. The simplicity of cash back credit cards makes them a good starting point for earning rewards, but more advanced techniques can yield even better returns.

In summary, a cash back credit card could be right for you if:

• You want to earn valuable, yet simple rewards on your spending.

• You have the discipline to avoid credit card interest and long-term debt.

• Having access to simple redemption options for rewards is important to you.

While the best credit cards for cash back are all different, they tend to have some overlapping features. This is a quick rundown, but for a deeper look, a comprehensive rewards guide can be helpful. Here are the key things to look for as you search for the best.

Welcome Bonus

Most cash back credit cards have a welcome offer that's worth at least $200 when you meet a minimum spending requirement within a few months of account opening. There are some higher offers out there, but they tend to come from cash back business credit cards and consumer cash back credit cards with a higher annual fee.

Solid Rewards

The best cash back credit cards also offer lucrative rewards rates for all kinds of purchases, although they don't all give out rewards in the same way. For example, there are flat-rate cash back credit cards, tiered bonus category cards and cash back cards that offer bonus rewards in rotating categories that change over time.

Consumer Protections

Many top cash back cards include some consumer protections for cardholders automatically. These protections are available for cardholders any time they use their cash back credit card for an eligible purchase.

Flexible Redemption Options

Also look for cards that offer the redemptions you want for your rewards, and remember that some cards and programs are considerably more flexible than others.

If you opt for a cash back credit card, you can redeem rewards for options like statement credits, merchandise, travel through a portal or gift cards.

Intro APR Offer

Nearly all cash back credit cards offer 0% APR on purchases, balance transfers or both for a limited time. These offers can help you save on interest as you consolidate debt or pay down large purchases. Just remember that your card's variable interest rates apply when these offers end.

Before you pick the best cash back credit card, you should think over the factors that matter the most. These steps can help you narrow down your options.

Know Your Credit Score

The best cash back credit cards are typically geared to consumers with FICO scores of at least 670 or 700. However, there are cash back credit cards for people with fair credit or poor credit, too.

Taking the time to check your credit score can help you figure out which type of cards you may be eligible for. If you have poor credit or no credit, for example, you'll find several secured credit card options that still offer cash back rewards for spending.

Expert intel: "A secured card can be a good way to build credit when you have no credit or are just beginning to build your credit profile. It’s typically easier to get approved for a secured card since you are putting down a security deposit, which reduces the lender's risk." - Leslie H. Tayne, Esq., founder of Tayne Law Group

Look at Rewards Rates

Decide if you want to earn flat-rate cash back or a higher cash back rate in different categories. Understanding cash back categories is crucial; it can help to look over your regular expenses and bills you charge to plastic to see which type of card might leave you ahead.

If you can't decide between a flat-rate cash back credit card or bonus category card, consider getting both. This strategy can help you earn bonus rewards in categories you spend the most in, then you can switch to your more lucrative flat-rate cash back credit card for other spending and bills.

Decide On Annual Fees

The vast majority of cash back credit cards don't charge an annual fee, yet you can find card options that do charge one. There's nothing wrong with paying an annual fee for a credit card, but you should run the numbers to make sure the additional rewards you earn will leave you "ahead."

Research Cardholder Benefits

Decide which cardholder benefits you want, and look for cash back credit cards that offer them. Common benefits you can get with these cards include purchase protection, extended warranties and travel insurance benefits, to name a few.

Confirm Redemption Options

Make sure you're happy with the redemption options your favorite card offers, whether you prefer to redeem rewards for a check in the mail, statement credits, gift cards, merchandise or travel. Note that many of the best cash back credit cards offer all of these options to choose from.

If you want the option to use your cash back rewards for travel, consider cards and programs that let you pool your rewards for premium redemptions like point transfers.

Hoping to leverage your cash back credit card to the hilt? Consider these expert tips to find the right card and get the most bang for your buck.

Pick a Card that Aligns With Your Spending

Travel rewards expert Luis Lan of Better than Points says consumers looking for a new card should first assess their spending and decide how much effort they want to put into the process.

"Would they rather have one card that gives them a lower cash back amount but the same amount for all purchases? Or, do they value getting more cash back for a few categories while a lower amount for others?" he asks.

"Once that decision is made, do your research in seeing what card best fits with the values you outlined previously," Lan added.

Pay Off Debt Before You Pursue Rewards

Cash back credit cards that also have balance transfer offers can lure consumers into a debt trap if they're not careful. With that warning in mind, it can make sense to pay off debt before you start using a credit card for the purpose of earning rewards on spending.

"The problem with using a balance transfer card that also earns rewards is the temptation users have to earn a welcome bonus or earn rewards on spending," said credit card expert Lee Huffman. "While these are valuable perks once you're out of debt, the primary focus when using a balance transfer credit card is paying off your balance, not spending more trying to earn rewards."

Consider Banks that Offer Relationship Bonuses

Travel expert Elliot Rosenberg says it can make sense to ask yourself if you're willing to park considerable assets with a bank like U.S. Bank or Bank of America in order to score a higher percentage of rewards with their top credit cards.

"If not, you should expect to settle for 2% cash-back on all purchases or opt for cards that have higher earnings on quarterly rotating spending categories," he said.

If you're struggling to decide on a cash back credit card, you may want to consider alternative options. These could include:

• Co-branded travel credit cards: If you want to earn rewards for travel instead of cash back, comparing all the best travel credit cards on the market today makes a lot of sense. With co-branded card options from travel brands like Delta SkyMiles or Hilton Honors, you could earn airline miles or hotel loyalty points with your favorite programs instead of cash back.

• Flexible travel credit cards: Flexible travel credit cards from top programs like Amex Membership Rewards, Capital One Miles and Chase Ultimate Rewards let users redeem their points for transfers to airlines and hotels, travel through a portal and simple options like cash back or gift cards.

• Cash back debit cards: There are also cash back debit cards available, which tap into funds you deposit in a connected checking account when you make a purchase. This means these accounts don't build credit like credit cards do, and they also have some limitations.

To find the best cash back credit cards on the market today, we compared offers based on their welcome bonuses, rates and fees, redemption options for rewards and included cardholder benefits. We also surveyed consumer sentiment about the best card offers online, and we reached out to experts for their take on the best cards available.

The cards that made our ranking offer the most robust rewards rates and welcome offers out there, plus a generous selection of benefits that help consumers protect their purchases.

Does Any Credit Card Offer 5% Cash Back?

Some credit cards offer 5% cash back in quarterly bonus categories that change every three months, although bonus rewards caps apply.

Are There Any Credit Cards That Give 3% Cash Back?

Some cash back credit cards offer 3% cash back in bonus categories, but this higher rewards rate does not apply to other everyday purchases.

What Is a Good Amount of Cash Back for a Credit Card?

The best cash back credit cards offer a flat rate of 2% cash back on all purchases or a lower base rewards rate and more rewards (usually 3% to 6% back) in bonus categories like dining out, groceries or gas.

Is There a Downside to Cash Back Credit Cards?

Cash back credit cards offer something back for each dollar you spend, but there's a catch. They also charge high variable interest rates if you carry a balance from one month to the next.

Does Cash Back Expire?

Most cash back rewards programs say your rewards won't expire as long as your account remains open and in good standing. However, you should still read over your card's rewards program terms and conditions to confirm.

Is Cash Back from a Credit Card Taxable?

Credit card rewards are considered a rebate by the Internal Revenue Service (IRS), thus they are not considered part of your taxable income.

Wells Fargo

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Bank of America

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