If you love earning money back on everyday purchases, a cashback credit card can be a great way to save. Cashback credit cards reward you for spending by giving back a percentage of your purchases. Whether you’re shopping for groceries, dining out, or filling up your gas tank, cashback cards help you earn rewards on the things you buy most.
In this article, we’ll explore some of the top credit card offers with the highest cashback and how to choose the best one for your spending habits.
What is a Cashback Credit Card?
A cashback credit card gives you a percentage of your spending back in the form of rewards, usually as a statement credit, direct deposit, or gift card. Cashback rewards typically range from 1% to 5%, depending on the category and card.
There are two main types of cashback structures:
- Flat-rate Cashback: You earn the same percentage back on all purchases, like 1.5% or 2%.
- Tiered or Rotating Categories: You earn more cashback on specific categories, like 5% on groceries or gas, and 1% on everything else.
Top Credit Card Offers with the Highest Cashback
Here are some of the best credit cards offering the highest cashback rates:
1. Citi® Double Cash Card
- Cashback Offer: Earn 2% cashback on all purchases – 1% when you buy and another 1% when you pay off your balance.
- Annual Fee: $0
- Why It’s Great: This card is perfect for those who prefer simplicity. You earn a flat 2% cashback on everything, with no need to track categories or spending limits.
2. Chase Freedom Flex℠
- Cashback Offer: Earn 5% on rotating categories (up to $1,500 per quarter), 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores, and 1% on all other purchases.
- Annual Fee: $0
- Why It’s Great: This card offers great rewards in multiple categories, making it ideal for those who can maximize the rotating 5% categories.
3. Discover it® Cash Back
- Cashback Offer: Earn 5% on rotating categories (up to $1,500 per quarter) and 1% on all other purchases. Plus, Discover matches all cashback earned in your first year.
- Annual Fee: $0
- Why It’s Great: The first-year cashback match is a huge perk, essentially doubling your rewards. If you take advantage of the rotating categories, you can earn a significant amount back.
4. Blue Cash Preferred® Card from American Express
- Cashback Offer: Earn 6% on U.S. supermarkets (up to $6,000 per year), 6% on select U.S. streaming services, 3% on transit and U.S. gas stations, and 1% on other purchases.
- Annual Fee: $95 (waived in the first year)
- Why It’s Great: This card is excellent for families or anyone who spends a lot on groceries and gas. The high 6% cashback at supermarkets can quickly add up.
5. Wells Fargo Active Cash® Card
- Cashback Offer: Earn unlimited 2% cashback on all purchases.
- Annual Fee: $0
- Why It’s Great: Similar to the Citi Double Cash, this card is great for people who want a simple and high flat-rate cashback card without worrying about categories.
6. Capital One SavorOne Cash Rewards Credit Card
- Cashback Offer: Earn 3% cashback on dining, entertainment, popular streaming services, and grocery stores, and 1% on all other purchases.
- Annual Fee: $0
- Why It’s Great: If you love dining out and entertainment, this card is ideal. With 3% cashback on these categories, it’s a great choice for foodies and those who enjoy concerts, movies, and events.
How to Choose the Best Cashback Credit Card
When deciding which cashback card is right for you, consider the following factors:
- Spending Habits: Look at where you spend the most money. If you spend heavily on groceries, gas, or dining out, a card that rewards these categories could be more beneficial than a flat-rate card.
- Rotating vs. Flat-Rate: If you prefer a simple, no-hassle card, go for a flat-rate cashback card like the Citi Double Cash or Wells Fargo Active Cash. If you’re willing to track rotating categories, Chase Freedom Flex and Discover it Cash Back can offer higher rewards.
- Annual Fees: Some high-cashback cards, like the Blue Cash Preferred, have annual fees, but if you spend enough in their top categories, the rewards can easily outweigh the cost. Be sure to do the math and see if your spending justifies the fee.
- Sign-Up Bonuses: Many cards offer bonus rewards for new cardholders, such as extra cashback or statement credits after spending a certain amount within the first few months. These bonuses can be a nice boost to your rewards.
- Reward Redemption Options: Make sure the card offers easy and flexible ways to redeem your cashback, whether through statement credits, direct deposits, or gift cards.
Final Thoughts
Choosing the right cashback credit card can help you earn money on the purchases you already make. Whether you prefer a simple flat-rate card or want to maximize your rewards with rotating categories, there’s a card out there that fits your lifestyle.
