Best Cash Back Credit Cards in 2023

Find the Best Cash Back Credit Cards in 2023

Did you know that cash back credit cards can help you save money on your everyday purchases and balance transfers, while rewarding you for spending? These cards offer a percentage of the purchase price back as cash, sometimes even with bonus cash for specific categories or spending thresholds. In this blog post, we will explore the best cash back credit cards of 2023, discuss their advantages and disadvantages, and help you choose the right card for your spending habits.

From flat-rate and unlimited cash back cards to tiered-rate and rotating category cards, there’s a cash back credit card out there for everyone. By understanding the different types of cards and how they can benefit you, you can make an informed decision and maximize your rewards. So let’s dive in and discover the best credit cards for cash back available in 2023!

Short Summary

  • Choose the best cash back credit card based on individual spending habits and financial needs.

  • Maximize rewards by choosing the right card and utilizing multiple cards strategically.

  • Consider factors such as fees, APR, bonus categories, annual fees & foreign transaction fees to select a card that fits your financial goals.

Top Cash Back Credit Cards

Cash back credit cards come in three main types: flat-rate, tiered-rate, and rotating category cards. Each type offers a different rewards structure, making it essential to choose the right card based on your spending habits. The purpose of most credit card issuers' cards for cash back is to provide a reward for everyday purchases, often without a foreign transaction fee, making them suitable for both domestic and international spending.

Flat-rate cash back cards offer a consistent cash back percentage on all purchases, making them ideal for those seeking simplicity. Tiered-rate cash back cards, on the other hand, provide varying cash back percentages based on specific spending categories, allowing you to maximize rewards on targeted spending habits. Lastly, rotating category cash back cards offer high rewards for specific spending areas with categories changing every quarter, requiring activation and ongoing monitoring.

Before diving deeper into each type of cash back credit card, it’s crucial to evaluate your most significant expenses and consider which cards offer rewards for those categories. By doing so, you can determine the best credit cards for cash back that aligns with your spending habits and helps you save on your credit card bill.

Flat-Rate Cash Back Cards

Flat-rate cash back cards offer a fixed cash back percentage on all purchases, making them an excellent choice for individuals who prefer a straightforward rewards structure. These cards usually provide a consistent rewards rate, such as 1.5% cash back on all purchases, across various spending categories.

One of the top flat-rate cash back cards is the Citi Double Cash Card, which offers a cash back rate of 2% on all purchases, with 1% earned when you make a purchase and an additional 1% when you pay off the purchase. Another popular flat-rate card is the Wells Fargo Active Cash Card, which also provides 2% cash back on all eligible purchases and comes with cell phone protection.

The Capital One Quicksilver Cash Rewards Credit Card is another excellent flat-rate cash back card that offers a 1.5% cash back rate on all purchases. With no annual fees and a simple rewards structure, flat-rate cash back cards are perfect for those who want to earn consistent rewards without the hassle of tracking bonus categories or spending caps.

By choosing a flat-rate cash back card that suits your needs, you can enjoy the simplicity of earning rewards on all your purchases without worrying about specific categories or spending caps. Just remember to pay off your balance in full each month to avoid interest charges and maximize your cash back earnings.

Tiered-Rate Cash Back Cards

Tiered-rate cash back cards offer varying cash back percentages depending on certain spending categories, making them ideal for tailored spending habits. These cards reward you more for specific categories, such as dining, groceries, or gas, allowing you to maximize rewards based on your spending habits and even earn bonus cash.

One of the best tiered-rate cash back cards is the Blue Cash Preferred Card from American Express, which offers a 6% cash back rate on groceries. With this card, you can earn significant rewards on your grocery purchases, making it an excellent choice for families or individuals who spend a considerable amount on groceries each month.

When choosing a tiered-rate cash back card, it’s essential to consider your most significant expenses and select a card that offers the highest rewards in those categories. For example, if you frequently spend on dining and gas, look for a card that offers higher cash back rates in those categories.

Tiered-rate cash back cards can be a great option if you want to maximize rewards on specific spending categories. By selecting a card that aligns with your spending habits, you can earn more cash back on the purchases that matter most to you.

Rotating Category Cash Back Cards

Rotating category cash back cards offer high rewards for specific spending areas, with categories changing every quarter. These cards require activation on the user’s part and consistent monitoring to identify the upcoming categories. Although they may require more effort, rotating category cards can provide significant rewards in certain spending categories.

Some popular rotating category cash back cards include the Capital One SavorOne Cash Rewards Credit Card, the Chase Freedom Flex, and the Chase Ultimate Rewards program. Both cards and the rewards program offer high rewards for specific spending categories that change on a quarterly basis, allowing you to earn more cash back on featured categories such as restaurants, wholesale clubs, gas stations, and groceries.

To maximize cash back earnings with a rotating category card, it’s crucial to activate the categories every quarter and pay attention to the changing categories. By doing so, you can ensure that you’re earning the maximum cash back on featured categories and not missing out on any potential rewards.

Rotating category cash back cards can be a rewarding option for those who are willing to put in the effort to activate and monitor the changing categories. With the potential to earn considerable rewards in specific spending categories, these cards can be a valuable addition to your wallet.

Card Specifics: Pros and Cons

When selecting a cash back credit card, it’s essential to consider the advantages and disadvantages of each card, including rewards rates, fees, and other features. This will help you make an informed decision and choose the card that best suits your needs and spending habits.

For example, the Citi Double Cash Card offers a high cash back rate of 2% on all purchases, making it an attractive flat-rate cash back card option. However, it’s essential to consider other factors such as annual fees, foreign transaction fees, and balance transfer options before deciding if this card is the right fit for you.

Similarly, the Blue Cash Preferred Card from American Express offers a high cash back rate on groceries but comes with an annual fee. You’ll need to weigh the benefits of the higher rewards rate against the cost of the annual fee to determine if this card is the best choice for your spending habits.

By carefully evaluating the pros and cons of each cash back credit card, you can select the card that offers the best overall value for your financial needs and goals.

Maximizing Cash Back Rewards

To maximize your cash back earnings, it’s essential to choose the right card, activate any required bonus categories, and strategically use multiple cards to earn cash rewards. Start by selecting a card that aligns with your spending habits, ensuring that you’re earning the highest rewards in the categories where you spend the most.

If you have a rotating category cash back card, make sure to activate the categories every quarter and monitor the changing categories. This will enable you to earn the maximum cash back on featured categories and not miss out on any potential rewards.

Using multiple cash back credit cards strategically can also help you maximize your rewards. For example, you might use a flat-rate cash back card for everyday purchases and a tiered-rate card for specific spending categories where you know you’ll earn higher rewards. By combining cards and using them wisely, you can ensure that you’re earning the most cash back on all your purchases.

Cash Back vs. Travel Rewards

When comparing cash back credit cards with travel rewards cards, it’s important to consider which type of card best suits your spending habits and goals. Cash back credit cards provide a consistent value and do not require a significant time investment to redeem rewards. On the other hand, travel rewards cards may offer higher points values but necessitate an understanding of the program’s features and flexibility to maximize their potential.

For individuals who travel overseas at least once a year, a travel rewards credit card may be more beneficial due to the higher point values and absence of foreign transaction fees. However, if you prefer a more straightforward rewards structure and don’t travel frequently, a cash back credit card might be a better fit for your needs.

Ultimately, the choice between cash back and travel rewards credit cards depends on your unique spending habits and financial goals. By carefully considering the benefits and drawbacks of each type of card, you can make an informed decision that will help you maximize your rewards and achieve your financial objectives.

Choosing the Right Cash Back Credit Card

When selecting a cash back credit card, it’s crucial to consider several factors, such as your spending habits, rewards rates, and bonus categories. By understanding your most significant expenses and evaluating which cards offer rewards for those categories, you can choose the best cash back credit card that aligns with your spending habits.

For example, if you spend a considerable amount on groceries each month, a tiered-rate cash back card for grocery stores like the Blue Cash Preferred Card from American Express might be an excellent choice, as it offers a 6% cash back rate on groceries.

Additionally, it’s essential to compare annual fees, foreign transaction fees, and balance transfers when evaluating cash back credit cards. By taking all these factors into account, you can choose the right cash back credit card that best suits your financial needs and helps you save on your credit card bill.

Redeeming Cash Back Rewards

Cash back rewards can be redeemed in various ways, including membership statement credits, bank deposits, and gift cards. The method you choose to redeem your cash back rewards may depend on your personal preferences and financial needs. Statement credits are a popular option, as they can be applied directly to your credit card bill, effectively reducing your balance. Bank deposits, on the other hand, allow you to redeem cash directly into your bank account, giving you more flexibility in how you use the funds. Gift cards can also be a valuable redemption option, especially if you can find gift cards for retailers where you frequently shop.

When redeeming cash back rewards, it’s essential to familiarize yourself with the redemption options available for your specific card and choose the method that best suits your needs and preferences.

Cash Back Credit Card Fees and APR

Fees and annual percentage rates (APR) associated with cash back credit cards can impact your overall rewards, making it essential to consider these factors when choosing a cash back credit card. Some cash back credit cards may have annual fees, which can offset the rewards you earn if you don’t spend enough to justify the fee.

In addition to annual fees, it’s also important to consider foreign transaction fees if you plan to use your cash back credit card internationally. Some cash back credit cards may charge a fee for transactions made outside of your home country, which can add up quickly if you travel frequently.

Lastly, be mindful of the APR associated with your cash back credit card. Carrying a balance from month to month can result in interest charges that may negate the cash back rewards you earn. To maximize your rewards, it’s crucial to pay off your balance in full each month and avoid accruing interest.

Building and Maintaining Good Credit

Building and maintaining a good credit score is crucial to qualify for the best cash back credit cards and other financial products, including earning statement credit. Lenders take into account various factors such as income, debt-to-income ratio, and FICO score when assessing your financial standing.

By responsibly managing your credit and consistently paying off your balances on time, you can improve your credit score and increase your chances of qualifying for the best cash back credit cards. This will ultimately help you maximize your rewards and achieve your financial goals.

Overall Top 5 Cash Back Credit Cards

There are many reasons to apply for a cash back credit card. Perhaps you are looking to save money on your monthly expenses, or you want to earn rewards for your everyday spending. Cash back credit cards offer a great way to do both.

With a cash back credit card, you can earn rewards for your everyday spending, which can be used to offset the cost of your monthly expenses. In addition, cash back credit cards often offer special promotions and bonuses, which can help you save even more money. Check out these five cards and apply online to see if you qualify today.

1. Chase Freedom Unlimited Card

The Chase Freedom Unlimited card is undoubtedly the best cash back credit card in the world. New cardholders are automatically granted an additional 1.5% cashback on all purchases for the first year, up to $20,000, which comes out to a total of $300 cash back.

During the first 15 months, cardholders are also gifted with a 0% APR, helping to ease payment fees. From there, they can benefit from:

  • 6.5% cashback rewards on all travel expenses purchased through Chase Ultimate Rewards®

  • 4.5% cashback on pharmacy and restaurant purchases

  • 3% cashback on all other purchases

After the first 15 months, the APR rises to a variable rate of 16.49%-25.24%. Luckily, though, this card does not have an annual fee. To qualify, applicants will need a credit score above 690.

2. Wells Fargo Active Cash® Card

Unlike most other cash back credit cards, the Wells Fargo Active Cash Card offers a simple flat-rate cashback rewards program. Rather than offering special rates for certain purchases, cardholders are awarded 2% cash back on all purchases. While this might not be as substantial as the higher rate returns on select purchases that other cards offer, it balances out in the long run.

Cardholders also benefit from the following perks:

  • 0% APR for the first 15 months

  • $200 rebate after spending $1,000 in the first 3 months

  • $600 of phone protection when you pay your cell phone bill through Wells Fargo

  • Access to Wells Fargo Visa Signature Concierge Service

After the first 15 months, the APR rises to a variable rate of either 16.49%, 21.49%, or 26.49%. This card does not have an annual fee but you will be charged a 3% foreign transaction fee if you use it overseas. All cashback rewards can be redeemed as a statement credit or you can directly withdraw your rebate from a Wells Fargo ATM.

3. Blue Cash Preferred® Card from American Express

So many cash back rewards cards are structured to offer premium perks for frequenter flyers and travelers. The Blue Cash Preferred® card from American Express breaks with this model and offers variable-rate cashback returns on everyday purchases, such as groceries, gas, and streaming purchases. Essentially, this is the card for everyday people.

Qualifying cardholders can benefit from the following perks:

  • 6% cash back at supermarkets, up to $6,000 annually

  • 6% cash back on streaming subscriptions

  • 3% cash back at American gas stations

  • 1% cash back on all other purchases.

This card comes with a 0% APR for the first 12 months, which then rises to a variable rate of 15.49% to 25.49%. Additionally, the Blue Cash Preferred® card comes with a $95 annual fee, making it slightly more expensive than other options on our list. Nevertheless, this card is more likely to help you save in everyday life than most others.

4. Citi Double Cash Card

The Citi Double Cash card offers a similar rewards plan as the Wells Fargo Active Cash® card, with 2% cashback rewards on all purchases, yet it structures its rebates a little differently. Rather than awarding a flat-rate 2% cash back guarantee, cardholders earn 1% on every purchase and then an additional 1% for every dollar they pay back.

This helps cardholders stay up-to-date on their payments and increases their rebate at the end of the month. Other perks include:

  • 0% APR for the first 18 months

  • Reduced introductory transfer fee of 3%

  • Lower base APR of 15.49%

After the first year and a half, cardholders should expect to pay a 5% transfer fee and their APR could rise to 25.49%, depending on their credit score. This card does not charge an annual fee, though.

5. Discover it® Cash Back Card

The Discover it® Cash Back card is one of the best cash back cards for people with good to excellent credit. Cardholders can benefit from a 0% APR for the first 14 months, as well as 5% cash back on certain quarterly categories that rotate each year.

Currently, these include grocery stores, restaurants, and Amazon.com. All other purchases come with a 1% cash back return. Other Discover it® Cash Back Card perks include:

  • No annual fee

  • Free FICO® credit score

  • 5% cash back on gas and travel purchases

  • 1% cash back on all other purchases

After the first 14 months, the APR rises to a variable rate of 14.49% to 25.49%. All cash back rewards are doubled at the end of the first year, providing cardholders with a great way to boost their savings.

Alternative Reward Credit Cards

If cash back credit cards don’t seem like the best fit for your financial needs, there are alternative reward credit card options available, such as travel rewards cards and flexible bank points cards. These cards offer different types of rewards, such as airline miles, hotel points, or flexible travel points, which may be more valuable to you depending on your preferences and spending habits.

Travel rewards cards, for example, can offer higher points values and exclusive perks for frequent travelers, such as free checked bags, priority boarding, and airport lounge access. Flexible bank points cards, on the other hand, allow you to redeem points for various rewards, such as travel, merchandise, gift cards, or even cash back, providing more flexibility in how you use your rewards.

By exploring alternative reward credit card options and considering account opening, you can find the best fit for your financial needs and maximize your bonus rewards based on your unique spending habits and preferences.

Summary

In conclusion, cash back credit cards offer a valuable way to save money on your everyday purchases and earn rewards simply by using your signature credit card. By understanding the different types of cash back credit cards, such as flat-rate, tiered-rate, and rotating category cards, and considering factors such as annual fees, foreign transaction fees, and APR, you can choose the right cash back credit card that aligns with your spending habits and maximizes your rewards.

Whether you prefer the simplicity of a flat-rate cash back credit card rewards or the targeted rewards of a tiered-rate or rotating category card, there’s a cash back credit card out there for everyone. By selecting the right card, strategically using multiple cards, and responsibly managing your credit, you can make the most of your cash back rewards and achieve your financial goals.

Frequently Asked Questions

Is 5% cash back on credit card good?

5% cash back on a credit card is a great way to maximize rewards, as the interest rates are typically standard and no annual fee is required.

However, it may not be suitable for everyone, so it’s important to consider individual needs and spending patterns before deciding.

What are the disadvantages of cash back credit cards?

Cash back credit cards may come with a high APR, have a cap on how much you can earn each year and require you to wait to access your rewards.

Additionally, some travel rewards such as airline miles can offer more value than cash-back rewards.

Are cash back cards a good idea?

Cash back credit cards can be a great option if you always pay your bill off in full each month, as you can get rewarded for spending money you would have spent anyway.

However, it’s important to keep in mind that these cards tend to have higher interest rates and you won’t benefit from the rewards if you don’t pay your bill off in full every month.

How can I maximize my cash back rewards?

Maximize your cash back rewards by selecting the right card, activating bonus categories, and utilizing multiple cards for various spending types.

By selecting the right card, you can maximize your cash back rewards. Look for cards that offer bonus categories, such as 5% cash back on groceries or 3% cash back on gas. Utilizing multiple platforms.

What are some common ways to redeem cash back rewards?

Cash back rewards can be redeemed through statement credits, bank deposits, and gift cards, making them easy and convenient to use.

These rewards are simple to use and provide a great way to save money. They can be used to pay for everyday purchases or to save up for a larger purchase.

Cash back rewards are a great idea.

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