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No endless list of cards to sort through here. We match you with the cash back card that will give you exactly what you need

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See cash back cards best suited for your wallet, not ours

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Easily compare with earnings you can expect

No more sifting through a long list of credit cards! Answer a few questions and we’ll show you a tailored list of cash back credit cards with how much you can earn in cash back from them.

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How finding the best cash back credit card works on Credello

Find your perfect credit card match in 3 easy steps.

1. Answer a few simple questions

We ask you basic questions about how you spend your money and what you want from your credit card.

2. Benefit from our state-of-the-art algorithm

Credello's state-of-the-art algorithm compares hundreds of cards on the market right now based on your spending habits, requirements and where you can earn the most cash back.

3. Cards that are just right for you

We fetch the best suited cards for you, with your Match score and the estimated cash back value, for easy comparison.

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FAQ

What are cash back credit cards?

A cash back credit card offers rewards for using it in the form of cash. The cash back reward is like a bonus to credit card customers for using their card to make purchases. The cards are simple to understand, and you can use the earned dollars anywhere.

These rewards operate on a percentage basis. When you use your cash back credit card, you'll get a certain amount of cash back for every dollar you spend. And then in some cases, you can earn extra cash back for certain types of spending, such as at grocery stores or gas stations.

For example, if you spend $75 at the grocery store that gives 3% cash back on that type of spending, you've earned $2.25 back.

Essentially, cash back is like a discount or rebate, because for every eligible purchase from the card, you're given a small percentage back. While these rewards may seem small, they can add up over time. Then, they can be redeemed to be put toward other purchases, or delivered in the form of a check or prepaid debit card.

How does a cash back credit card work?

When you use a cash back credit card to make a purchase, the issuer gives you back a certain percentage of the purchase amount. Most often, this is 1%, 2% or 3% of the total, but can be as high as 6% or more.

For example, if your card earns 1% on purchases, and you buy something for $100, you'll get $1 back. Or, if your card earns 3% in the restaurant category and you spend $50 out to eat, you'll earn $1.50 back.

You can check your accumulated earnings on your monthly statement or through your online portal account. Then, you can decide how you want to redeem the points, like:

Applying to your account as credit
Putting toward future purchases
Receiving a paper check or prepaid debit card

Types of cash back credit cards

There are essentially four types of cash back credit cards: flat-rate, tiered, dynamic bonus categories, and membership-only cards.

Flat-rate cash back cards

Flat-rate cash back cards offer the same reward for every eligible purchase. They give you a set percentage of cash back regardless of what you purchase with the card, often around 1-1.5%. These cards are the easiest to use and keep track of your rewards, but earnings could be lower than what you'd earn with other types.

Tiered cash back cards

Tiered cash back cards offer different rates for different types of purchases. You'll earn a higher rate in some specific categories, and a lower rate on everything else. In some cases, you can choose which categories earn the rewards. For example, you may earn 3% on restaurant spending, 2% on groceries, and 1% on everything else.

Dynamic bonus categories

Some cash back cards offer bonus categories that can be chosen on a monthly or quarterly basis based on your spending habits or the time of year. This can help you earn money back at a faster rate. There are essentially three types of dynamic bonus categories: rotating, choose your own, and auto-optimizing.

Rotating bonus categories

A card with rotating bonus categories typically gives higher reward rates, but you'll have to enroll in the category (also called “opting in” or “activating”) each quarter for purchases to qualify. These cards also usually set spending limits, so you can only earn a certain amount from these rewards categories per quarter. You'd then earn a flat, lower rate on everything else.

Choose your own category

With some cards, you’re able to choose your cash back category on a monthly or quarterly basis. This way, you can optimize your spending based on the category you choose,and plan out your year to maximize cash back. Some of the most common bonus categories include:

Gas

This typically applies to traditional gas service stations, and not gas stations affiliated with supermarkets or warehouse clubs. It usually includes everything you can buy there, including gas or purchases in the convenience store, though some cards only count gas so read the reward information carefully.

Online shopping

When you use your card for online purchases, you could earn more cash back. Some cards offer rewards for any use of your card online, while others specify it must be an online-only store, such as Amazon.

Dining

Also called “restaurants,” this typically includes everything “dining” related such as fast food, food delivery, or eating in a sit-down restaurant. They also usually include the full bill, including the server's tip.

Travel

If you’re a frequent traveler for work or leisure, this bonus category could earn you extra dollars faster. Typically, flights, hotels, rental cars, or other travel-related purchases are included.

Drug Stores

Some cards offer rewards on drug store purchases such as prescriptions and other health-related items.

Home improvement/furnishings

Some store purchases, such as at Home Depot or Lowes, can earn more cash back. If you're planning a big renovation project, choose this category when you're making all the purchases.

Auto-optimizing bonus categories

This is similar to choosing your own category, but instead of you selecting which category you want to earn more cash back in, the card does it for you. At the end of the month, it analyzes your spending and applies the bonus rate to purchases within that top eligible category.

Membership-only cash back credit cards

Sometimes, a cash back credit card may require membership. These co-branded cards typically allow you to earn extra rewards and extra perks at specific stores or providers, such as Amazon, Sam’s Club or Costco. Some credit unions also offer this option. While you may need to pay an annual membership to qualify for the card, they usually have better interest rates and fewer fees.

How to compare cash back credit cards

Annual fee

Most cash back credit cards don't have an annual fee, though some with higher rewards rates may charge one. The important thing is that you'd earn enough cash back to cover the annual fee. Otherwise, it wouldn't be worth it.

Also investigate other fees you would have to pay to ensure you won't be surprised by unexpected costs.

Sign-up bonus

Some cards offer a sign-up bonus, or an extra amount of cash, as essentially free money. However, it usually comes with a catch - you likely must spend a certain amount of money within a period to earn the bonus. For example, spend $1,000 in the first three months in order to get a $500 bonus.

If your regular spending is enough to earn the bonus, this is a great perk. However, if you'd have to spend more than you normally would to qualify for the bonus, it probably isn't worth it to prioritize.

Flexibility

Be sure to understand how you can redeem your cash back rewards, and whether there are any rules associated with the reward itself. For example:

Do you have to earn a certain amount of cash back before it can be redeemed? (minimum redemption requirements)
Can you put the cash back toward your next bill as a statement credit?
Can you redeem cash directly in your bank account?
Will you receive a paper check?
Can you redeem rewards for more than cash back, i.e. gift cards?

A card that offers more flexibility for redeeming rewards may be a better fit for your lifestyle.

0% introductory APR period

To protect your credit score and avoid accruing interest, it's important to pay credit cards off completely each month. However, some cards offer a 0% APR introductory period for new purchases, balance transfers, or both. Depending on how you want to use the card, choosing one with this offer can be beneficial.

Cash back rate

Understand the rate for the card and the different categories available. Consider the type of card, and whether you can choose your categories or get bonus categories throughout the year that can earn you more. Make sure the categories are areas where you spend, and that you would earn enough cash back in those categories to make the card worth it.

Cash back vs. travel cards

Cash back cards earn you cash back on purchases. Travel cards, especially co-branded cards for airlines and hotels, earn you points, miles or other perks like free checked bags or priority boarding.

The thought of earning 1% cash back on purchases compared to these other travel perks may seem boring or not as much of a reward. However, unless you are traveling extensively and spending more than $8,600 per year on travel (according to a 2016 study by NerdWallet), you may earn more with a cash-back card vs. a travel card.

If you are comparing cash back to travel cards, estimate how much you'd have to spend on travel or other purchases to earn more rewards than you would with cash back.

For example, say you get a travel card that offers free checked bags on any flight. If you only travel once per year, and the fee for checked bags is $50, you're saving $50. You could likely earn more than $50 in cash back throughout the year. However, if you fly 10 times per year, you're saving $500. Perhaps that would be more than how much you’d earn with cash back.

Pros and cons of using a cash back credit card

Pros

Cons

Earn extra cash each month just by using the card

Higher APRs than other credit cards

Improve your credit score by adding to your credit history

Sometimes require you to enroll in bonus categories on a monthly or quarterly basis

Typically, do not have an annual fee

May not be as valuable as travel cards, depending on your lifestyle

Some offer sign-up bonuses, welcome offers, or 0% APR introductory rates

Few additional perks

Flexibility in how rewards are redeemed

Foreign transactions and other fees can be high depending on the card

Different types of cards offer a variety of reward categories and choice options

Some have earning caps, limiting how much cash back you can get in a certain category

Why it's worth getting a cash back card

If you use a credit card for regular spending, why not earn extra cash back that you can spend anywhere? Not only can you earn cash on every purchase, you can earn even more when you take advantage of bonus categories with higher reward rates. These cards are easy to understand and use, and you can almost immediately see the value.

Plus, these cards usually don't have annual fees, and often offer sign-up bonuses or welcome offers that allow you to earn more faster. This, in addition to the flexibility in redeeming the cash, can make cash back credit cards a great option if you’re looking for a rewards card.

Frequently asked questions

How to make the most of your cash back card?

Charge often

The more you use your card, the more cash back you'll earn. Try to use your card for most (or all) of your spending; however, be sure to pay it off each month to avoid accruing interest and decreasing your credit score.

Combine cards for optimum rewards

If you have more than one cash back credit card, avoid overlapping categories that can make earnings redundant. For example, have one card that offers extra cash back for dining, and another that earns extra for online shopping.

Opt for no-annual-fee card if you’re a low spender

If your card has an annual fee, you'll want to make sure you're spending enough to earn enough cash back to at least cover the fee. If you don't spend as much, it may be difficult to earn enough rewards, so your card will end up costing more than you make back.

Take advantage of rotating bonus categories

If you can choose the categories where you earn rewards or a greater reward rate, be sure to choose ones that fit your spending habits. Or, take advantage of rotating cash back bonus categories and activate them each month or quarter so you don't miss out on extra earnings.

Earn your sign-up bonus

If the card offers a sign-up or welcome bonus, try to meet the minimum spending requirement to qualify. Shift as much of your spending as possible to the new card until you hit that limit.

Use the card's shopping portal for extra rewards

Some credit cards have online credit card malls, which you can access through your personal login. Making purchases here can earn you extra cash back, sometimes up to 10x as much or more. Not all cards offer this, but include it in your considerations when comparing options.

Maximize your spending categories

If you're earning greater cash back in certain categories, make sure you plan as much as possible to spend more during that time within those categories. For example, if the category for spring-time is at home improvement stores, plan to purchase items for your renovation project during that time.

Pay your card in full and avoid fees

Paying your card off in full each month can help you avoid accruing interest and decreasing your credit score. When you sign up for a card, familiarize yourself with any fees you could encounter and avoid situations where you'd be charged.

Which credit card has the best cash back rate?

The amount of cash back can depend on the starting rate and bonus categories, and your spending habits should heavily influence which card you choose. Some options include:

The Wells Fargo Active Cash Card, which offers unlimited 2% cash rewards on all purchases.
The Chase Freedom Unlimited, which offers 5% cash back on travel purchased through Chase Ultimate Rewards, 3% back on drugstore purchases and dining, and 1.5% on all other purchases.
The Blue Cash Preferred Card from American Express, which offers 6% cash back at U.S. supermarkets, 6% back on select streaming subscriptions,3% back on transit, 3% back at gas stations, and 1% on other purchases.
The Citi Custom Cash Card, which earns 5% cash back on purchases in your top eligible categories (up to a limit) and unlimited 1% back on other purchases.
The Bank of America Customized Cash Rewards card, which offers 3% cash back in the category of your choice (to a limit), 2% at grocery stores and wholesale clubs (to a limit), and unlimited 1% on all other purchases.
The Capital One Quicksilver Cash Rewards card, which earns unlimited 1.5% cash back on every purchase.

Is cash back from a credit card taxable?

Points, miles, and cash back rewards you earn are not taxable. These rewards are considered by the IRS to be a discount.  

Do cash back rewards expire?

This depends on your credit card company. Many of the larger companies do state that rewards can expire, but typically it doesn't happen until after the cardholder closes the account or after a certain period of account inactivity. If the account remains open and active, your rewards likely won't expire.

Which is better, cash back or travel rewards?

Whether a cash back credit card or travel rewards card is better for you depends on your situation and lifestyle. If you’re an avid traveler, a travel card may be more beneficial since it can give you specific perks that help save you money. However, if you only travel a couple of times per year, you'll likely earn more cash back rewards.

How can I redeem cash back?

This depends on your credit card company, but typically you can put the cash back toward paying off your bill, use them to make online purchases, have them deposited into your bank account, or get a paper check or prepaid debit card.

Can I lose my cash back rewards?

Yes, it is possible to lose your cash back rewards. Each card has specific reward program details listed in the expiration policy, so it is worth paying attention to these. Every reward program is slightly different, but it is most common for cash back rewards to expire when the cardholder or issuer closes the account or after a long period of inactivity. Your best option is to use your card often, redeem your points regularly and keep the account open.

Disclaimer: Credello is not a licensed credit repair organization, credit counselor, debt management company, debt settlement company, or any other organization in the business of offering advice as to how to improve or repair your credit. Any information provided on this website that pertains to your credit is not to be construed as credit improvement or credit repair advice from Credello.

We’ll find you the perfect Cash back credit card match

Get a cash back card you’ll love

Not a one-size-fits-all list

Unbiased recommendation

No math needed

What’s your credit score these days?

How finding the best cash back credit card works on Credello

1. Answer a few simple questions

2. Benefit from our state-of-the-art algorithm

3. Cards that are just right for you

What are cash back credit cards?

How does a cash back credit card work?

Types of cash back credit cards

Flat-rate cash back cards

Flat-rate cash back cards

Tiered cash back cards

Tiered cash back cards

Dynamic bonus categories

Dynamic bonus categories

Rotating bonus categories

Choose your own category

Gas

Online shopping

Dining

Travel

Drug Stores

Home improvement/furnishings

Auto-optimizing bonus categories

Membership-only cash back credit cards

Membership-only cash back credit cards

How to compare cash back credit cards

Annual fee

Sign-up bonus

Flexibility

0% introductory APR period

Cash back rate

Cash back vs. travel cards

Pros and cons of using a cash back credit card

Pros

Cons

Why it's worth getting a cash back card

Frequently asked questions

How to make the most of your cash back card?

Charge often

Combine cards for optimum rewards

Opt for no-annual-fee card if you’re a low spender

Take advantage of rotating bonus categories

Earn your sign-up bonus

Use the card's shopping portal for extra rewards

Maximize your spending categories

Pay your card in full and avoid fees

Which credit card has the best cash back rate?

Is cash back from a credit card taxable?

Do cash back rewards expire?

Which is better, cash back or travel rewards?

How can I redeem cash back?

Can I lose my cash back rewards?

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