Best Cash Back Credit Cards of 2023

Cash back credit cards give users the chance to earn rewards as they spend, and the rewards can be “free” as long as customers never carry a balance. Many cards in this niche come with no annual fee as well, and rewards tend to be easy to understand.

For example, most cash back credit cards offer a flat rate of rewards on everything you buy, and some also have bonus categories that let you maximize your spending. When it comes to redeeming rewards, cash back credit cards offer options like a check in the mail, statement credits, gift cards, or merchandise. Some cash back cards even let you use your rewards for flights, hotel stays, rental cars, and other types of travel.

If you’re in the market for a cash back card, the sheer number of options can feel overwhelming. There are almost too many excellent rewards cards to choose from regardless of which card issuer you prefer.

To help in your search, we compared all the best options available today based on their rewards rates, welcome offers, annual fees, and more. Before you pick your next cash back credit card, take the time to explore and compare the top cards in our rankings.

What is a cash back credit card?

A cashback credit card can be a valuable tool if you’re disciplined with your spending and able to pay your credit card bill in full each month. But, how exactly do cash back cards work?

For the most part, cards in this niche work like any other credit card. Upon account opening, you’re given a line of credit you can borrow against, as well as a credit limit that caps your purchases at a certain amount. From there, you can use your card for day-to-day spending and bills, and you’ll earn rewards on each purchase you make.

If you choose to pay your credit card bill in full, you can skip interest charges and avoid getting into debt in the long-term. However, you have the option to make a minimum payment or any other payment up to your statement balance, in which case the regular APR will be charged on revolving balances.

Some rewards credit cards charge an annual fee, whereas others do not. Also note that many cash back credit cards offer perks like third-party travel insurance, memberships for rideshares, a DoorDash DashPass membership, purchase protection, extended warranties, and more.

Types of cash back credit cards

As you compare all the best cash back credit cards side-by-side, 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 offer 1.5% to 2% back or more on everything you buy. These cards tend to come with no annual fee, and many have an intro APR for purchases, balance transfers, or both.
• Cash back cards with bonus categories usually offer a lower rate of rewards on day-to-day purchases, then make up for it by offering bonus points in specific categories. Cards in this niche tend to come with no annual fee, and many have an intro APR for purchases, balance transfers, or both.
• Rotating category cards usually offer 5% back within categories that change every three months, after which you earn 1% back on those purchases. Cardholders also earn 1% back on other spending and bills paid with this type of card.
• Customizable category cards offer cash back with no annual fee, and they have rewards schemes that change over time. In fact, your highest earning rate can change each month based on which categories you spend the most in.

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, make sure to 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 out on your bonus offer altogether.
• Use a few different cards to maximize your rewards potential.
  If you’re relatively organized, you can also get a few different rewards cards with different categories. For example, you can use one with 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.
• Pay your credit card bill on time each month.
  If you fail to make on time credit card payments, you can do significant damage to your credit score. Make sure to pay your credit bill early or on time every single month with no exceptions.

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 cards based on their rewards rates, their high-value perks, their money-saving benefits, and their welcome offers.

Other benefits we considered include no-fee status, intro APR offers, and the ability to get pre-approved online. Ultimately, we chose cards that offer considerable rewards on purchases and all-around value to the vast majority of consumers.