NerdWallet’s Best Cash Back Credit Cards, Spring 2012 Edition

Rewards hunters often lean toward cash back credit cards. Sure, gift cards are nice, and airfare is lovely, but cold hard cash provides the versatility and flexibility to put rewards toward any goal or purpose that tickles your fancy. Cash back cards come in a multitude of varieties, and we can’t recommend a one-size-fits-all that will be universally optimal for every consumer. If you’ve already decided on going the cash-back route, you’ve made a smart choice. Now, you need to determine which card will be best suited for your purposes. We’ve compiled a categorized list of the best cash back credit cards, sorted by major spending profiles. Take a gander and see which category best describes you!

Best no-fee card: the Chase Freedom

Rewards don’t often come free. Credit card issuers like to make you pay to earn. The Chase Freedom, however, is an exception. There is no annual fee, so your rewards come at no cost to the user. The card has a signup bonus of $100 cash back when you spend $500 in first 3 months. Rewards accumulate at an accelerated 5% rate in rotating categories that change 4 times a year. These categories are selected to coincide with typical seasonal spending habits. For example, you might earn 5% on travel during the summer or 5% at department stores during the holiday season (categories change annually but generally stay fairly consistent). All purchases that do not fall within the jurisdiction of the accelerated categories garner a flat 1% cash back. Also, if you feel like browsing Chase’s online mall, all purchases there will earn 10% rewards. With no annual fee, good luck finding a better program.

Best free cash rewards card: the Capital One Cash

Rewards don’t often come free. Credit card issuers like to make you pay to earn. The Capital One Cash, however, is an exception. There is no annual fee, so your rewards come at no cost to the user. The card has a signup bonus of $100 cash back for new accounts.. You’ll get an ongoing rewards rate of 1.5% cash back, pretty much the highest rate and most versatile redemption for no-fee cards. Plus, like all Capital One cards, the Cash has no foreign transaction fee. With no annual fee, good luck finding a better program.

Best card for suburbanites: the AmEx Blue Cash Preferred

For many, the biggest expenses are the common day-to-day transactions–going to the grocery store, filling the tank, etc. If that sounds like you, take the American Express Blue Cash Preferred for a spin. Its benefits are tailored for families, suburbanites and anyone who wants to curb the cost of living. The signing bonus is $150 when you spend $1,000 in the first 3 months. It’s a nice way to get the ball rolling. Ongoing rewards operate on staggered percentage rates. Supermarket purchases earn 6% cash back. Department store and gas station purchases earn 3% (Amazon.com is included in the department store category, which is kind of awesome). Everything else everywhere else earns at  a flat 1% rate. The annual fee is $75, but the rewards easily offset the cost. Simply spending $25 in groceries every week will be enough to pay the fee. All additional earnings result in pure upside.

If you find your biggest expenditures are the simple day-to-day transactions, take a look at the American Express Blue Cash Preferred. Its benefits package is assembled for families and suburbanites. The signing bonus—$100 if you spend $500 in the first 2 months—is nice way to kick off your earnings. Supermarket purchases earn 6% cash back, gas station and department store purchases earn 3% and all other expenditures earn 1%. Fun fact: Amazon is considered a department store and thus yields 3% cash back. There is an annual fee of $75, but your rewards easily offset the cost. In fact, $25 in groceries every week is enough to make up the difference. All earnings beyond that are pure profit. Also, the Blue Cash grants a 12-month 0% introductory APR to provide a pleasant little cushion of time in which you won’t have to worry about accumulating interest.

Best cash back card for businesses: the Chase Ink 

The Chase Ink Classic card can do great things for small businesses. With it, you’ll earn cash back at 5% on office supplies and cable and telecom services–particularly useful when establishing or re-establishing headquarters. Operate a businesses with travel needs? You’re in luck. The Ink rewards 2% for dining and gas. Other purchases earn 1%.  The 2% and 5% categories are limited at $25,000 each in annual purchases, but the universal 1% is unlimited. The Ink is currently offering a $250 signing bonus when you charge $5,000 in the first 3 months. It will also give you a 0% purchase APR for the first 6 months, which is great for making investments or putting together an office.

Best card for students: the Discover Student More

Obtaining your first credit card can seem a insurmountable task. Many students haven’t yet had the chance to establish any sort of credit history, which makes qualifying for a reasonable card that much more difficult. The Discover Student More card was designed with these limitations in mind. It provides a vital launchpad for people new to the credit card game. You won’t pay interest for the first 6 months, allowing you to get accustomed to the functionality of credit cards without penalization. After you make your first purchase, you’ll receive a $25 cash bonus. Most student credit cards offer pretty pitiful rewards, but the More has fairly substantial program in place. Rewards accumulate at 5% in rotating categories that include expenditures such as groceries, gas, travel and department store purchases. Everything else earns .25% cash back for the first $3,000 spent annually, and 1% back for all spending beyond $3k. Bearing in the mind how broke college students tend to be, the More doesn’t stoop to charging an annual fee. It’s a free, student-friendly card that allows young folks to get a foot in the door.