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The best cash-back credit cards allow users to earn rewards as they spend, and the rewards can be “free” as long as they never carry a balance. Many cards in this niche come with no annual fee, and rewards are easy to understand.
To help in your search for the perfect cash-back credit card, we compared all the best options available today based on their rewards rates, welcome offers, annual fees and more.
Earn 6% cash back on up to $6,000 spent at U.S. supermarkets each year (then 1% back), 6% cash back on select U.S. streaming services, 3% cash back at U.S. gas stations and on transit, and 1% cash back on other eligible purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
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Although this card has an annual fee, most families will be able to easily get enough value out of the everyday categories to make it worth it.
Enjoy 6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% cash back on all other purchases.
Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% back on all other purchases. Earn 8% cash back on Capital One Entertainment purchases when you book through the Capital One Entertainment portal. Earn 5% back on hotels and rental cars booked through Capital One Travel.
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The cash-back categories and welcome bonus are pretty solid, especially for a card without an annual fee.
Earn 3% cash back on up to $6,000/year spent at U.S. supermarkets (then 1%), 3% cash back on up to $6,000/year at U.S. gas stations (then 1%), 3% cash back on up to $6,000/year on online retail purchases (then 1%), and 1% cash back on all other eligible purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
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For a no-annual-fee option, the reward rate on this card is pretty solid, but for heavy spenders, other cards may offer more value.
Earn 2% cash back on up to $50,000 in combined purchases each year, then 1%. Cash back earned is automatically credited to your statement.
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This is a good option for businesses looking to earn simple cash back rewards, but other cards may provide higher value for big spenders.
Earn 1.5% cash back on all purchases and 5% back on hotels and rental cars booked through the Capital One Travel platform.
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This is a solid, straightforward cash-back card for people who don’t want to pay an annual fee or activate categories, but other cards may earn more.
Cash-back credit cards are a type of rewards card that give you money back based on the amount you spend. The cash reward is usually a percentage of your total purchase, typically 1% to 5%. Some cards offer the same amount on all purchases. Others give higher percentages for categories like groceries, dining, or gas.
For example, if you have a card that offers 2% cash back on groceries and you spend $200 at the store, you’ll get $4 cash back. You can usually redeem this money as a statement credit, direct deposit, gift card, or check.
Credit cards offer cash-back rewards to encourage users to spend more on specific products and services. Card issuers make money through fees and interest, so it’s in their best interest to motivate cardholders to use their credit cards frequently.
Cash-back cards give you rewards every time you use them to make a qualifying purchase.
Here’s how it works:
Cash-back cards come in three main types:
Many cash-back cards offer elevated earnings in specific bonus categories.
The most common categories include:
To maximize the benefits of a cash-back credit card, consider these tips:
When choosing a credit card, consider your spending patterns and financial goals.
Here are a few key factors to consider when picking a cash-back credit card:
Consider your spending habits to evaluate which categories would be most beneficial. If you don’t want to worry about categories, consider looking for a card with flat-rate cash back on all purchases.
Look for cards with welcome offers to help boost your rewards from the start. 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.
There are many cash-back cards with no annual fees, but some cards with higher rewards may have one.
Weigh the fee against the potential rewards. Remember that the cash back you earn won’t technically be money in your pocket until you’ve earned back the annual fee.
For example, the Blue Cash Preferred Card has a $95 annual fee ($0 intro fee for the first year). It offers 6% back on groceries and select streaming services. To offset the annual fee, you’d need to spend about $1,600 in those specific categories to earn enough cash back.
Consider whether the amount you earn beyond that point justifies getting this card over a no-annual-fee alternative like the Blue Cash Everyday Card.
Some cards offer an intro 0% APR period on purchases and/or balance transfers. While it’s always best to avoid carrying a balance, these cards can be helpful if you need more time to pay off a large purchase or balance transfer without accruing interest charges.
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For rates and fees of the Blue Cash Preferred® Card from American Express, please visit this page.
For rates and fees of the Blue Cash Everyday® Card from American Express, please visit this page.
For rates and fees of The American Express Blue Business Cash™ Card, please visit this page.
In most cases, no. The IRS considers cash back or rewards you’ve earned from a credit card to be a type of rebate or discount, not taxable income.
The only case where your credit card rewards may be considered taxable income is if you receive money without spending anything to earn it. For example, getting a sign-up bonus simply by opening an account, rather than as a reward for spending money.
A majority of credit card cash back doesn’t expire, as long as your account is open, active, and in good standing. The policies regarding cash back expiration vary from issuer to issuer, so check what your specific card’s reward expiration policy is.
Many cards in this niche offer contactless payment options. Make sure to check the advertising-supported page for each card you’re considering so you know for sure.
Yes! Various student credit cards offer cash back rewards like the Capital One SavorOne Student Cash Rewards Credit Card and Capital One Quicksilver Student Cash Rewards Credit Card.
A credit card transaction fee is a fee that is charged based on a specific occurrence. For example, you may be charged a foreign transaction fee if you use your credit card for purchases outside the United States.
You can use nearly any cash back credit card at Walmart (note, however, that many issuers don’t count Walmart as a grocery store).
Credit card interest rates vary dramatically from card to card, although most low-interest cards do not offer rewards. Interestingly, many cash back credit cards do offer 0% APR on purchases, balance transfers, or both for a limited time.
Yes! Multiple credit cards can help you get cash back on business-related purchases like the American Express Blue Business Cash™ Card.
Most cash back credit cards require good to excellent credit to qualify, but some cards like the Capital One Quicksilver Secured Cash Rewards Credit Card offer decent cash back rewards for those who are rebuilding their credit.
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Holly D. Johnson is an award-winning personal finance writer who covers topics like insurance, investing, credit and family finance. As a leading voice in the travel and loyalty space, Johnson has traveled with her family to more than 50 countries over the last decade.
The author has also written extensively on the power of household budgeting, and she even co-authored a book on the topic. Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love was originally published in 2017, and it teaches families how to use zero-sum budgeting to reach their financial goals. She is also the co-owner and founder of the family finance and travel website, ClubThrifty.com.
Johnson’s 10+ years of writing have focused on helping families make important financial decisions at each stage of their lives. The author also applies the financial principles she teaches to her own life, and she is currently on track to retire in her late 40’s with her partner. She currently lives in Central Indiana with her husband and children, and she is a regular contributor for Bankrate, CNN, Forbes, U.S. News and World Report Travel and many other notable publications.
* Opinions expressed here are those of the LA Times Compare Cards Team and have not been reviewed or approved by any advertiser or entities included within this content. See our editorial policy for more details.
All products or services are presented in this content without warranty. The information, including card details such as rates and fees, is accurate at the time of publish. Please visit each bank's website directly for the most current information.
