If you’re looking to save money and earn rewards on your credit card spending, a cashback credit card might be the right choice for you. With so many options available, it can be overwhelming to choose the best one for your needs.
In this blog, we’ll highlight the top cashback credit cards in the USA and provide tips on how to choose the right one for you.
Introduction
Cashback credit cards are a popular choice for many consumers in the USA, as they offer a simple and straightforward way to earn rewards on everyday spending. With so many different options available, it can be difficult to know where to start when choosing a cashback credit card. In this article, we’ll break down the top cashback credit cards in the USA and provide tips on how to choose the best one for you.
What is a cashback credit card?
A cashback credit card is a type of rewards credit card that offers cashback on purchases made with the card. The amount of cashback you can earn will vary depending on the card and the spending categories. Some cashback credit cards offer a flat rate of cashback on all purchases, while others offer higher rates of cashback on certain spending categories, such as groceries or gas.
Benefits of using a cashback credit card
There are many benefits to using a cashback credit card, including:
- Earning rewards on everyday spending: Cashback credit cards allow you to earn rewards on purchases you’re already making, such as groceries, gas, and dining out.
- Simple and straightforward rewards: Unlike other rewards credit cards that can be complex and difficult to understand, cashback credit cards offer a straightforward way to earn and redeem rewards.
- Flexibility: Cashback rewards can be used to offset your credit card balance, redeemed for statement credits, or deposited into a bank account, giving you flexibility in how you use your rewards.
How to choose the best cashback credit card for you
When choosing a cashback credit card, there are several factors to consider, including:
- Spending categories: Look for a cashback credit card that offers higher rates of cashback on the spending categories you use the most.
- Annual fees: Some cashback credit cards charge an annual fee, so make sure to factor that into your decision.
- Sign-up bonuses: Some cashback credit cards offer sign-up bonuses, which can be a great way to earn extra rewards when you first open the card.
- APR: Make sure to consider the interest rate you’ll be charged if you carry a balance on your cashback credit card.
Top picks for the best cashback credit cards in the USA
Here are our top picks for the best cashback credit cards in the USA:
1. Chase Freedom Unlimited
The Chase Freedom Unlimited is a popular cashback credit card that offers a flat rate of 1.5% cashback on all purchases. There’s no annual fee, and new cardholders can earn a $200 sign-up bonus after spending $500 in the first three months.
Chase Freedom Unlimited Credit Card Details
Sure, here are some details about the Chase Freedom Unlimited credit card:
- Cashback rewards: The Chase Freedom Unlimited offers a flat rate of 1.5% cashback on all purchases, with no limit on how much you can earn.
- Sign-up bonus: New cardholders can earn a $200 sign-up bonus after spending $500 in the first three months.
- Annual fee: There’s no annual fee for this credit card.
- APR: The APR for purchases and balance transfers ranges from 14.99% – 23.74%, depending on your creditworthiness.
- Introductory APR: The Chase Freedom Unlimited offers a 0% introductory APR on purchases for the first 15 months of account opening.
- Foreign transaction fees: There are no foreign transaction fees when you use your Chase Freedom Unlimited credit card to make purchases outside of the United States.
- Other benefits: Cardholders also have access to Chase’s Ultimate Rewards program, which allows you to redeem your rewards for statement credits, travel, gift cards, and more. Additionally, you can receive free credit score updates, purchase protection, and extended warranty coverage on eligible purchases.
- Credit requirements: To be eligible for the Chase Freedom Unlimited credit card, you typically need to have good to excellent credit.
Overall, the Chase Freedom Unlimited credit card is a great option for those who want to earn cashback rewards on all their purchases without having to worry about rotating categories or spending caps. With its generous sign-up bonus and no annual fee, it’s definitely worth considering if you’re in the market for a new credit card.
2. Citi Double Cash
The Citi Double Cash is another great cashback credit card that offers 2% cashback on all purchases – 1% when you make the purchase, and another 1% when you pay your credit card bill. There’s no annual fee, and you can redeem your rewards for a statement credit, direct deposit, or a check.
Citi Double Cash Credit Card Detail
Here are some details about the Citi Double Cash credit card:
- Cashback rewards: The Citi Double Cash offers 2% cashback on all purchases – 1% when you make a purchase and an additional 1% when you pay for that purchase, for a total of up to 2% cashback.
- Sign-up bonus: There’s currently no sign-up bonus for this credit card.
- Annual fee: There’s no annual fee for the Citi Double Cash credit card.
- APR: The APR for purchases and balance transfers ranges from 13.99% – 23.99%, depending on your creditworthiness.
- Introductory APR: The Citi Double Cash offers a 0% introductory APR on balance transfers for the first 18 months of account opening, with a balance transfer fee of 3% (minimum $5).
- Foreign transaction fees: There are no foreign transaction fees when you use your Citi Double Cash credit card to make purchases outside of the United States.
- Other benefits: Cardholders also have access to Citi Private Pass, which offers exclusive access to presale tickets and VIP experiences for concerts, sporting events, and more. Additionally, you can receive free credit score updates, purchase protection, and extended warranty coverage on eligible purchases.
- Credit requirements: To be eligible for the Citi Double Cash credit card, you typically need to have good to excellent credit.
Overall, the Citi Double Cash credit card is a solid option for those who want a simple and straightforward cashback rewards program with a high earn rate of 2% on all purchases. While it doesn’t offer a sign-up bonus, the 0% introductory APR on balance transfers and lack of foreign transaction fees make it a great choice for those who frequently travel or want to transfer high-interest balances to a lower rate.
3. Discover it Cash Back
The Discover it Cash Back credit card offers 5% cashback on rotating categories each quarter (up to $1,500 in purchases), and 1% cashback on all other purchases. There’s no annual fee, and Discover will match all the cashback you earn in your first year as a cardholder.
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Discover it Cash Back Credit Card Detail
Here are some details about the Discover it Cash Back credit card:
- Cashback rewards: The Discover it Cash Back credit card offers 5% cashback on rotating categories that change every quarter, up to a quarterly maximum of $1,500 in purchases. You’ll also earn 1% cashback on all other purchases.
- Sign-up bonus: Discover will match all of the cashback you’ve earned at the end of your first year as a cardholder, effectively doubling your rewards.
- Annual fee: There’s no annual fee for the Discover it Cash Back credit card.
- APR: The APR for purchases and balance transfers ranges from 11.99% – 22.99%, depending on your creditworthiness.
- Introductory APR: The Discover it Cash Back offers a 0% introductory APR on purchases and balance transfers for the first 14 months of account opening.
- Foreign transaction fees: There are no foreign transaction fees when you use your Discover it Cash Back credit card to make purchases outside of the United States.
- Other benefits: Cardholders also have access to Discover’s Cashback Match program, which matches all of the cashback you earn in your first year as a cardholder. You can also get free FICO credit score updates, purchase protection, and extended warranty coverage on eligible purchases.
- Credit requirements: To be eligible for the Discover it Cash Back credit card, you typically need to have good to excellent credit.
Overall, the Discover it Cash Back credit card is a great choice for those who want to earn cashback rewards on rotating categories without having to pay an annual fee.
The Cashback Match program is a unique perk that can help maximize your rewards in the first year of ownership, and the lack of foreign transaction fees makes it a good option for those who frequently travel outside of the United States. Just keep in mind that you’ll need to activate the rotating categories each quarter to earn the 5% cashback.
4. Capital One Quicksilver Cash Rewards
The Capital One Quicksilver Cash Rewards credit card offers a flat rate of 1.5% cashback on all purchases, with no annual fee. New cardholders can earn a $200 cash bonus after spending $500 in the first three months.
Capital One Quicksilver Cash Rewards Detail
Here are some details about the Capital One Quicksilver Cash Rewards credit card:
- Cashback rewards: The Capital One Quicksilver Cash Rewards credit card offers 1.5% cashback on all purchases, with no limit to the amount of cashback you can earn.
- Sign-up bonus: If you spend $500 on purchases within the first 3 months of opening your account, you can earn a $200 cashback bonus.
- Annual fee: There’s no annual fee for the Capital One Quicksilver Cash Rewards credit card.
- APR: The APR for purchases and balance transfers ranges from 15.49% – 25.49%, depending on your creditworthiness.
- Introductory APR: The Capital One Quicksilver Cash Rewards credit card offers a 0% introductory APR on purchases and balance transfers for the first 15 months of account opening.
- Foreign transaction fees: There are no foreign transaction fees when you use your Capital One Quicksilver Cash Rewards credit card to make purchases outside of the United States.
- Other benefits: Cardholders also have access to Capital One’s CreditWise program, which provides free credit monitoring and tools to help you manage your credit score. You can also get extended warranty coverage on eligible purchases.
- Credit requirements: To be eligible for the Capital One Quicksilver Cash Rewards credit card, you typically need to have good to excellent credit.
Overall, the Capital One Quicksilver Cash Rewards credit card is a solid choice for those who want a straightforward cashback rewards program with no annual fee.
The sign-up bonus is a nice perk, and the lack of foreign transaction fees makes it a good option for international travel. The 0% introductory APR on purchases and balance transfers is also a plus, especially if you’re planning to make a big purchase or transfer a balance from another credit card.
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5. Blue Cash Preferred Card from American Express
The Blue Cash Preferred Card from American Express offers 6% cashback on groceries (up to $6,000 per year in purchases), 6% cashback on select U.S. streaming subscriptions, 3% cashback at U.S. gas stations and on transit, and 1% cashback on all other purchases. There is a $95 annual fee, but the rewards can more than make up for it if you spend a lot in the bonus categories.
Blue Cash Preferred Card from American Express Credit Card Detail
Here are some details about the Blue Cash Preferred Card from American Express:
- Cashback rewards: The Blue Cash Preferred Card offers cashback rewards on purchases made at supermarkets, gas stations, and select department stores. You can earn 6% cashback on up to $6,000 in supermarket purchases per year, 6% cashback on select streaming subscriptions, 3% cashback at U.S. gas stations and on transit (e.g. taxis, rideshare, parking, tolls, trains, buses), and 1% cashback on all other purchases.
- Sign-up bonus: If you spend $3,000 on purchases within the first 6 months of opening your account, you can earn a $300 statement credit.
- Annual fee: The Blue Cash Preferred Card has an annual fee of $95.
- APR: The APR for purchases and balance transfers ranges from 13.99% to 23.99%, depending on your creditworthiness.
- Introductory APR: The Blue Cash Preferred Card offers a 0% introductory APR on purchases and balance transfers for the first 12 months of account opening.
- Foreign transaction fees: There is a 2.7% foreign transaction fee when you use your Blue Cash Preferred Card to make purchases outside of the United States.
- Other benefits: Cardholders can take advantage of Amex Offers, which provide discounts and cashback on select purchases. You can also get extended warranty coverage on eligible purchases, as well as travel accident insurance and roadside assistance.
- Credit requirements: To be eligible for the Blue Cash Preferred Card, you typically need to have good to excellent credit.
Overall, the Blue Cash Preferred Card from American Express is a great choice for those who spend a lot of money on groceries and gas. The cashback rewards on these purchases are among the highest available on any credit card. The sign-up bonus and introductory APR on purchases and balance transfers are also attractive features. However, the $95 annual fee may be a drawback for some, and the foreign transaction fee makes it less ideal for international travel.
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Conclusion: Best Cashback Credit Card
Choosing the best cashback credit card for you depends on your spending habits and preferences. Look for a card that offers high rates of cashback on the categories you spend the most on, and consider factors like annual fees, sign-up bonuses, and APR. The top picks we’ve highlighted in this article are all great options to consider.
FAQs
Q1. Can I have multiple cashback credit cards?
Ans. Yes, you can have multiple cashback credit cards to maximize your rewards, as long as you’re able to manage them responsibly.
Q2. How do I redeem my cashback rewards?
Ans. It depends on the card, but most cashback credit cards allow you to redeem your rewards for a statement credit, direct deposit, or a check.
Q3. What is the difference between a flat-rate cashback card and a category-based cashback card?
Ans. A flat-rate cashback card offers a single rate of cashback on all purchases, while a category-based cashback card offers higher rates of cashback on specific spending categories, such as groceries or gas.
Q4. Are there any downsides to using a cashback credit card?
Ans. One potential downside is that some cashback credit cards have higher interest rates, so if you carry a balance on your card, you may end up paying more in interest than you earn in cashback rewards.
Q5. Can I transfer my cashback rewards to another credit card?
Ans. It depends on the card, but some cashback credit cards allow you to transfer your rewards to another card within the same issuer’s network.