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Maximize Your Cash Back With a Top Credit Card
Whether you want to earn cash back on gas, groceries, dining out, or all of the above, our Nerds have the info you need to find the smartest credit card for you.
How Do Cash Back Credit Cards Work?
Every time you use a cash back credit card to make a qualifying purchase in store or online, it earns back a percentage of the amount you paid. Here’s a crash course on the different types of cash back credit cards and how they work.
How to Choose the Right Card For You
STEP 1
Decide which type of cash back you want to earn.
Flat-rate: Lowest hassle, lower cash back rate on every purchase
Fixed bonus categories: Medium hassle, higher cash back rate on some purchases
Rotating categories: High hassle, highest cash back rate on some purchases
STEP 2
Narrow your list by asking yourself the following questions.
Does the card offer attractive rewards rates in your highest-spending categories? Does the card offer an intro offer to boost your short-term earnings? Does the card charge an annual fee? If so, is the rewards rate so good that it makes back that fee every year?
Check Out Our Favorite Cards Today
Flat-Rate Cash Back
The Citi Double Cash® Card is notable among cash-back cards, especially for an annual fee of $0. With superior flat-rate cash back, it’s ideal for consumers who want low-hassle, unlimited cash rewards on everything they charge. What it lacks in sizzle, it makes up for in daily dependability.
How does it work? The card gives you 2% cash back on every purchase — 1% when you make it, and another 1% back when you pay it off. The sooner you pay your balance, the sooner you earn the second half of the rewards. That's a powerful incentive to pay your credit card bill in full every month, which we recommend you do anyway to avoid interest.
How does it work? The card gives you 2% cash back on every purchase — 1% when you make it, and another 1% back when you pay it off. The sooner you pay your balance, the sooner you earn the second half of the rewards. That's a powerful incentive to pay your credit card bill in full every month, which we recommend you do anyway to avoid interest.
Elevated Rewards In Everyday Categories
The Capital One SavorOne Cash Rewards Credit Card is one of our favorite cards offering elevated rewards in everyday spending categories. It pays an unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases. If you're a frequent restaurant diner or grocery shopper, it'll be hard to find a better cash-back card for an annual fee of $0.
The potential to earn such a rich rate on both eating out and eating in helps separate this card from much of its competitors, which tend to focus on only one of those categories or the other. Plus, unlike some other cards, it doesn't limit how much spending is eligible for its higher rewards rates, and it doesn't have a minimum amount for redeeming your rewards. It's possible to find similar or higher rates with other options, but rarely both with the same card unless you're willing to cough up an annual fee.
The potential to earn such a rich rate on both eating out and eating in helps separate this card from much of its competitors, which tend to focus on only one of those categories or the other. Plus, unlike some other cards, it doesn't limit how much spending is eligible for its higher rewards rates, and it doesn't have a minimum amount for redeeming your rewards. It's possible to find similar or higher rates with other options, but rarely both with the same card unless you're willing to cough up an annual fee.
Families can rack up serious cash back with the Blue Cash Preferred® Card from American Express. The $95 annual fee is a whopper and pricey for a cash-back credit card, but if you spend at least $31 a week at the supermarket, you'll cover it.
It offers an eye-popping 6% cash back at U.S. supermarkets on up to $6,000 in spending per year, 6% back on select U.S. streaming subscriptions, and a generous 3% back on transit including U.S. gas stations, plus 1% cash back on everything else. Terms apply. Cash back is received in the form of reward dollars that can be redeemed as a statement credit. Gift cards and merchandise are also available.
It offers an eye-popping 6% cash back at U.S. supermarkets on up to $6,000 in spending per year, 6% back on select U.S. streaming subscriptions, and a generous 3% back on transit including U.S. gas stations, plus 1% cash back on everything else. Terms apply. Cash back is received in the form of reward dollars that can be redeemed as a statement credit. Gift cards and merchandise are also available.
Cash Back In Customized Categories
The U.S. Bank Cash+® Visa Signature® Card is a good match for avid rewards optimizers — those who juggle cards strategically to get the best return for every dollar. It works fine as an everyday card, but keep in mind that it requires some work on your part.
This card stands out from competitors in the 5% cash-back space by giving you the freedom to choose the categories where you'll earn that top rate. The card lets you select two 5% cash-back categories each quarter from a list of 12 (including home utilities, cell phone providers, ground transportation, gym and fitness centers, department stores, fast food and movie theaters), and it features a higher combined quarterly spending cap than the competition. Plus, you'll choose a 2% cash-back category every quarter from a list of three, and there's no spending cap on that category. Finally, you get 5% back on certain travel bookings through U.S. Bank.
This card stands out from competitors in the 5% cash-back space by giving you the freedom to choose the categories where you'll earn that top rate. The card lets you select two 5% cash-back categories each quarter from a list of 12 (including home utilities, cell phone providers, ground transportation, gym and fitness centers, department stores, fast food and movie theaters), and it features a higher combined quarterly spending cap than the competition. Plus, you'll choose a 2% cash-back category every quarter from a list of three, and there's no spending cap on that category. Finally, you get 5% back on certain travel bookings through U.S. Bank.
Bonus Cash In Rotating Categories
The Discover it® Cash Back on the other hand offers a high rewards rate in rotating categories, a good 0% APR offer and an unusual intro offer that could become a windfall. If you don't mind keeping track of bonus categories that change every three months, this card is a winner either as an everyday card or as part of a multicard rewards-maximizing strategy.
You would be hard-pressed to find a card with no annual fee that earns more than 5% cash back in bonus categories, which for the Discover it® Cash Back have recently included things like gas stations, grocery stores, restaurants and more. If you max out the 5% rotating quarterly category rewards each year on this card — that is, if you activated and spent up to $1,500 in those categories each quarter all year — you would earn $300 in bonus cash back, plus 1% back on every other purchase.
You would be hard-pressed to find a card with no annual fee that earns more than 5% cash back in bonus categories, which for the Discover it® Cash Back have recently included things like gas stations, grocery stores, restaurants and more. If you max out the 5% rotating quarterly category rewards each year on this card — that is, if you activated and spent up to $1,500 in those categories each quarter all year — you would earn $300 in bonus cash back, plus 1% back on every other purchase.
*Terms and conditions may apply to cash back benefits. Credit products subject to lender approval. See NerdWallet.com for details.
