Best Cash Back Credit Cards of 2024

What is a cash-back credit card?

Cash-back credit cards give you a small percentage back from purchases you make. The reward structure on these cards is simple; you pay with the card and the money back is credited to your account. 

For example, if you have the Blue Cash Preferred® Card from American Express which offers 6% back at U.S. supermarkets, and you spend $80 on groceries, you’ll get $4.80 back on that purchase.

It may not seem like much, but it can add up quickly.

Why do credit cards give cashback?

Credit cards give cash back as an incentive, encouraging users to spend more on certain products and services. As the card issuers earn fees and interest payments, it is in the interest of the issuer to encourage the user to use their credit card as often as possible.

How to redeem cash back

After making eligible purchases and successfully having them posted to your account, your rewards will likely be redeemable through the issuer’s website or mobile app.

Typically, you can redeem these rewards for a statement credit, you can have it mailed to you in the form of a check, or you can have it directly deposited into a bank account.

Some issuers also offer elevated redemption options, meaning you get more “bang for your buck” by redeeming your rewards in a certain way. 

Types of cash back credit cards

As you compare all the best cash-back credit cards, you’ll quickly notice that different types of cards exist.

While some cards aim to offer a higher rate of rewards on all your purchases, others offer bonus categories that help you maximize certain types of spending.

Types of cashback cards include the following:

Flat-rate rewards cards

Flat-rate cash back cards typically offer 1.5% to 2% back or more on everything you buy. These cards are perfect for people who don’t want to keep track of bonus categories.
Editor’s pick: Capital One Quicksilver Cash Rewards or Wells Fargo Active Cash

See our full comparison of Capital One Platinum vs Quicksilver or Capital One SavorOne vs Quicksilver.

Cash back cards with bonus categories

The most popular cash-back card option, these cards usually offer a lower rate of rewards on day-to-day purchases, then make up for it by offering bonus points in specific categories. 
Editor’s pick: Blue Cash Preferred® Card from American Express or Chase Freedom Unlimited®

Rotating category cards

With these cards, you can earn extra money back (often 5%) within categories that change every 3 months. You typically have to activate these categories to get the higher rate.
Editor’s pick: Chase Freedom Flex℠

Customizable category cards

Some cards let you choose your preferred cash-back category each month. This can allow you to optimize your cash back based on your highest spending categories. Similarly, some cards will automatically calculate where you spend the most and will apply the bonus rate to your top eligible category every month.
Editor’s pick: Citi Custom Cash® Card

Membership-based cash-back cards

These cards offer generous cash-back rewards exclusively for members of a specific program (think Amazon Prime, Costco, Sam’s Club, etc.). These cards don’t tend to have annual fees but it usually costs money to be a part of the required program.
Editor’s pick: Prime Visa (Amazon Prime membership required)

Common cash-back bonus categories

Many cash-back cards offer elevated earnings in specific bonus categories. The most common categories include:

Supermarkets/Groceries: If a card has a bonus category of “supermarkets,” “grocery stores,” or “groceries,” they’re all referring to the same thing. This category applies to any purchase made at an eligible grocery store, meaning groceries, toiletries, cat food, household products, and more. Most of the time, superstores like Walmart and Target aren’t included, nor are warehouse clubs like Sam’s Club or Costco.

Restaurants/Dining: This category usually applies to anything from fine dining to Chinese takeout. Sometimes this category is only applicable in the U.S. and other times it can be used worldwide, so check your specific card’s benefits.

Entertainment: A few of the top cash-back credit cards offer rewards on eligible entertainment purchases, typically booked through the issuer’s portal.

Gas stations: Many cash-back cards offer rewards for purchases made at gas stations, which often include the actual gasoline and purchases made at the convenience store. Typically, these are only applicable at traditional gas stations like Wawa or BP, not store-affiliated stations like Walmart.

Travel: Some cash-back credit cards offer elevated cash back on eligible travel purchases, like flights and hotels, typically when booked through the issuer’s portal. 

How to compare cash-back credit cards

The best cash-back credit card for you is fully dependent on your spending habits and lifestyle. Choose a card that can give you the most benefit. 

Here are a few key factors to consider when picking a cash-back credit card:

Annual fee

A majority of cash-back credit cards have no annual fee, but some of the most lucrative ones do.

Think about how much money you’ll need to spend to recoup a card’s annual fee because the cash back you earn won’t technically be money in your pocket until that fee is “earned back.”

For example, the Blue Cash Preferred Card has a $95 annual fee after the first year. We will focus on the highest earning category, which offers 6% back on groceries and select streaming services. To offset the annual fee, you’d need to spend approximately $1,600 in those specific categories to earn enough cash back.

Would the amount you earn beyond that point justify getting this card over a no-annual-fee alternative like the Blue Cash Everyday Card?

Welcome offer

A welcome offer can be alluring when signing up for a new credit card. The reward can easily offset an annual fee or can give you a good chunk of change back on the purchases you made to earn it. Typically, these offers require spending a significant amount in a set period to earn.

While this can easily fit into some people’s regular spending habits, it can encourage overspending for other people. Consider your spending habits and whether you can realistically earn a card’s bonus.

Rewards

Consider a card’s cash-back categories and whether they fit into your lifestyle. Also, look at how rewards can be redeemed and whether the redemption options make sense for your situation/goals. 

APR

Some cards offer an introductory 0% APR period on purchases and/or balance transfers. Although we never recommend carrying a balance if you can avoid it, these cards can be beneficial if you need extra time to finance a large purchase or pay off a balance transfer before interest rates set in. If you tend to carry a balance, it is crucial to understand a card’s APR to know how much interest you may end up paying and how it will impact your cash back.

Pros & cons of cash-back credit cards

How to maximize your cash back

If you’re planning to sign up for a cashback credit card, taking steps to maximize your rewards is a no-brainer.

The following tips can help you get the most bang for your buck without compromising your finances:

• Use your rewards card for all your everyday purchases and bills.
  The more spending you can put on a credit card, the more cash back you’ll earn over the long term. Take steps to set up recurring bills to be paid with your card automatically, and carry it with you so you can use it for everything you buy.
• Pay attention to bonus categories.
  If your card has bonus categories, use it for purchases in those categories whenever you can.
• Make sure to earn your card’s welcome bonus.
  Keep careful track of your card’s welcome offer details and how long you have to meet the minimum spending requirement. If your spending falls short when the timeline is up, you’ll miss your bonus offer altogether.
• Use a few different cards to maximize your reward potential.
  If you’re relatively organized, you can also get a few different reward cards with different categories. For example, you can use a card with no annual fee and 1.5% to 2% back on regular spending and bills, then switch to a card with bonus categories for all your other spending.
• Use your cash-back credit card alongside a monthly budget or a spending plan.
  If you want to earn rewards while avoiding credit card debt, it helps to use credit only for purchases you can afford to pay off. If you use your card in conjunction with a written monthly budget, that’s even better.
• Pay your credit card balance in full each month.
  Make sure you have a plan to pay your credit card off every month. If you carry a balance and wind up paying the regular APR on some of your purchases, the rewards you earned won’t leave you ahead.
• Take advantage of the issuer’s portal.
  Many credit card issuers offer online shopping portals where you can earn extra cashback on eligible purchases.
  
  
  

Is cash back better than points?

There’s no simple answer to which is best, as it depends on a user’s goal with their credit card. While points can have a higher redemption value than cash back, the rewards are often less flexible. Point-earning cards also usually have more perks but typically charge higher annual fees. 

If you’re looking for flexible, easy-to-earn rewards, cash back wins.

If you’re looking for high-value travel-related rewards, a points-based travel reward card may be more up your alley.

Alternatives to cash-back credit cards

• Travel rewards credit cards, like airline credit cards and hotel credit cards, offer generous rewards on eligible travel purchases and tend to have valuable travel-related perks like Global Entry or TSA PreCheck credits.
• General rewards cards are similar to cash-back cards but they tend to earn points on purchases.
• Although some cash-back cards offer balance transfer perks, balance transfer credit cards tend to offer longer intro APR periods to give you more time to pay off your debt.
• If you don’t qualify for a cash-back card, credit cards for bad credit, credit cards for no credit, or student credit cards can help you rebuild or build your credit score.
  
  
  

How we selected the best cash-back credit cards

To find the best cash-back credit cards on the market today, we compared hundreds of the best credit cards based on their rewards rates, perks, money-saving benefits, and welcome offers.

Ultimately, we chose cards that offer considerable rewards on purchases and all-around value to consumers.