best cash back credit cards
Introduction
Cash back credit cards have become a common feature in the list of key decision-making factors when making a purchasing decision. It gives consumers an easy chance to get back some percentage of what they spent, therefore becoming a favorite to anyone who would like to get more value for their money. However, with the available numerous programs, how do you select the most appropriate one?
Problem
Most of us are now using credit cards for the necessities of life and even for fun, like groceries and gasoline to eating out and buying goods over the internet. Surprisingly, credit card use is high with the convenience of their surprise.
When you are swiping away, you’re not even coming back home with something you have worn, fitted, or a product that you have used. Yes, credit cards have reward systems, but all those reward systems are not the same. Most people swipe credit cards that offer virtually no reward for the things they buy.
Of all the types of cashbacks, credit cards are vast and offer different rewards depending on the company that issues them. Some give a fixed cash rebate on any purchase, while others give better cash rebates for particular purchase categories, such as groceries and dining, or travel.
Agitation
Sarah is a working professional and often involves the usage of credit cards for personal and professional fronts. She uses about $2,000 monthly on different purchases, including part and full meal purchases and various online purchases. For the past five years, she has been using a card that offers her absolutely nothing in return—no cash back, no points, and none of the candy that comes with the Disneyland card.
Solution
Below, we’ve listed some of the best cash-back credit card providers to the current offers and some real-life examples.
Chase Freedom Unlimited
Chase Freedom Unlimited is one of the most valuable cashback credit cards available on the market. We get a very basic rewards program, 1.5%, which is unlimited cashback across all purchases. A choice is made for the benefit of the users, and there is no concern regarding the rotation of categories or the fact where a person spends his or her most.
The cashback is 3% in the dining establishment and drugstores purchased on the first year and a welcome bonus that may or may not be fixed at $200 after spending a given amount in the first three months of the credit card membership.
Case Study
John uses $1,500 per month on food, fuel, and eating out. To fix the idea, using Chase Freedom Unlimited, John receives $270 of cash back per year with the help of the constant 1.5% rate. Sabe added the usual 3% cash back on dining and drugstore purchases, making John’s annual cash back figure just over $450. Which is simple for getting extra bucks just by changing the card that is being used.
Key Features:
- 1.5% cash back on all purchases
- 3% on dining and drugstores for the first year
- No annual fee
- Easy-to-redeem cash back with no complicated point system
Citi Double Cash Card
This card is so simple, thus making it perfect for those people who are against lots and lots of bells and whistles when it comes to cashback. For most categories, you get a reward of 2% cash back—one half when you make a single purchase and the other half when you fully pay for it. It doesn’t have a yearly fee scheduled or basic categories to be tracked for the bonus.
Case Study
If Sara spends $2,000 per month, it means that at the end of the month, she can get $40 in this cashback. This card has a bit of a spin on this idea, with 5% cash back on up to $1,500 of everything bought in the specified advertised categories each quarter and 1% back on every other purchase. You earn 2% cash back—1% when you make a purchase and another 1% when you pay it off.
Key Features:
- 2% cash back on all purchases (1% at purchase, 1% at payment)
- No rotating categories
- No annual fee
- Flexible redemption options (cash back, statement credit, or direct deposit)
Discover it Cash Back
his card offers a unique twist on cashback, with 5% cash back on rotating categories each quarter and 1% on all other purchases. Also, Discover doubles all the cash back you have earned within your initial membership year, making your first year a double cash-back year.
Case Study
According to Mike, he spends approximately $500 every month on groceries and dining. For that half of the year, they would earn $150 cashback on these purchases for Mike. For the rest of his spending, he earns the standard 1%. But since Discover matches all his earnings for the first year, Mike’s total cashback reaches $600—a significant improvement from his previous non-rewards card.
Key Features:
- 5% cash back on rotating categories (up to $1,500 per quarter)
- 1% cash back on all other purchases
- Cashback match at the end of the first year
- No annual fee
American Express Blue Cash Preferred Card
It provides one of the best cash-back rewards for users who frequently make purchases in these categories: groceries, media streaming, and riding on buses and/or trains. Groceries give you 6% cashback up to $6,000 per year, and so do streaming services, while transit and gas get you 3% back.
Case Study
Lucy uses around $1000 to purchase food every month only. With the Blue Cash Preferred Card, Lucy gets $25 spent on groceries, yielding her $720 in cash back annually; the $50 spent on gas offers $144 in cash back; the $100 spent on streaming garners an additional $72, making her total yearly cashback $936. This is so because even when she has to pay a $95 annual fee, this is much cheaper than the $80 that she has to part with when she is using the credit card.
Key Features:
- 6% cash back on groceries (up to $6,000 per year)
- 6% cash back on streaming services
- 3% cash back on gas and transit
- Annual fee of $95, but strong rewards offset the cost
Capital One SavorOne Cash Rewards Credit Card
This card is best suited for dining and entertainment enthusiasts. It provides 3% cash back on dining, entertainment, and streaming services, and 1% cash back for all its other categories.
Case Study
Alex likes to attend concerts, eat out with friends as well, and watch television shows online. He spends around $500 for dining and entertainment each month, on average. Alex can get $180 in cash back every year on the exact purchases with the help of Capital One SavorOne. That 1% back on other purchases brings his total cashback to $240 a year—not bad for a feeless card.
Key Features:
- 3% cash back on dining, entertainment, and streaming
- 1% cash back on all other purchases
- No annual fee
- Ideal for social spenders
FAQs
What is a cash-back credit card?
A cash-back credit card offers a consumer a certain amount of their spending back in the form of cash.
How does one work?
Flexible enough to pay you cash value on anything that can be redeployed on any statement credit, deposit, or as gifts.
Can one arrive at some con about having cash-back credit cards?
Most of the cash-back cards may require an annual fee, although many of the cash-back cards that do, also have fee-free alternatives.
Do I make cash back on all my purchases?
Almost all the cards have cash back, and the cashback comes in terms of the sorts of purchases like groceries, gas, or dining; there is also another card known as an all-purpose cash back card.
This is making people look for the best cash-back credit card to use in their everyday purchases.
Based on the elements of reward quality, cost, fees, and other card features, the card that will be most suitable should be selected.
Conclusion
Finding the perfect cashback credit card doesn’t have to be a difficult task. If you’re a heavy spender, especially in groceries, dining, or purchasing, then there’s the best credit card for you. Starting with the basic Citi Double Cash Card to the categorization of the spending of American Express Blue Cash Preferred, each card has its strengths and is designed to fit different kinds of people.
Well, which cashback credit card do you apply for then? Well, that depends on how you are spending your money. But one thing is certain: the right card can help you maximize your opportunities and improve your payoff for your daily spending. Regardless of what type of rewards you prefer: flat rates or categories, you shouldn’t let the chance to make money while shopping pass by.