Best cash-back credit cards of 2022
Get the best cash-back credit cards this year. They all enable cardholders to get back a portion of what they paid for each transaction. You have so many brands to choose from, and they provide numerous credit card options. That’s why you have to do your research before getting one.
Once you look into it, you will realize that each cash reward credit card works differently from one another. After finding the ones you like, you will have to compare them to each other, so you can find the best. Fortunately, this article will recommend the best cash-back credit cards of the year, so you can earn rewards as soon as possible!
I’ll jump right into it by listing the top cash-back credit cards of 2022. It’s not a good idea to get one without understanding how they work, so I’ll talk more about that. After that, I will explain how to choose the best cards and what you should do before applying for one. Here are the cash-back credit cards I will discuss:
- Citi Double Cash Card – Best flat-rate cash-back credit card
- Blue Cash Preferred Card – Best tiered cash-back credit card
- Chase Freedom Flex Credit Card – Best rotating bonus cash-back credit card
Citi Double Cash Card – Best flat-rate cash-back credit card
Cash back that makes a splash. The Citi Double Cash Card. pic.twitter.com/98P3oXHN9q
— Citibank (@Citibank) December 10, 2017
If you want a cash-back credit card that’s simple to use, check out the Citi Double Cash Card. It lets you potentially earn 2% of all your purchases as cash-back.
I say “potentially” because you get back 1% when you make a purchase and 1% when you pay the bill by its deadline. This means you will not earn the other 1% if you pay late.
Once you get a Citi Double Cash Card, it will give you free access to your FICO score. This is handy for people who want to improve their credit rating.
Credit utilization is your current unpaid balance and your credit limit ratio. It’s best to have a 30% utilization rate, but it increases with more credit card transactions.
Fortunately, the Citi Double Cash Card lets you increase your credit limit, so your credit card utilization rate decreases. This makes it the best cash-back credit card for good credit as well!
The Citi Double Cash Card also provides 18 months of 0% APR for balance transfers. If you owe too much on other credit cards, you could transfer them to it.
After that, you will be able to pay off that debt without interest. In turn, you’ll be able to pay them off faster. The Citi Double Cash Card is even better if you have a Citi travel card.
You can turn your cash-back rewards into Citi ThankYou points if you have an eligible travel card. This lets you access travel redemptions from Citi’s multiple travel partners.
Apply for the Citi Double Cash Card to get a 0% APR intro period for 18 months. After that, your APR will range from 13.99% to 23.99%.
Read More: How Does Credit Card Utilization Work?
Blue Cash Preferred Card – Best tiered cash-back credit card
The Blue Cash Preferred Card – with up to 6% cash back at US supermarkets. Learn more: https://t.co/vLZv4FE5jY pic.twitter.com/c1c2JGQIXu
— American Express (@AmericanExpress) January 5, 2016
The Blue Cash Card is a tiered cash-back credit card, offering different cash-back rates for various purchases. I listed the amount of cash-back you’ll get based on your transaction:
- 6% cash-back when you accumulate a total of $6,000 per year in purchases at US supermarkets
- 6% from select US streaming services
- 3% from taxis, rideshares, tolls, parking, trains, buses, etc.
- 3% from US gas stations
- 1% cash-back from other purchases (They come as Reward Dollars that you may redeem as a statement credit)
What’s more, this cash-back credit card provides various benefits for its holder, such as:
- Receive secondary auto coverage when you pay for a rental vehicle and decline its collision damage waiver.
- Coordinate and find resources during a travel emergency with its global assist hotline.
- Get $0 cardholder liability for unauthorized purchases.
- Gain access to Pay It Plan It for less or more transactions than $100.
- If a seller doesn’t give the amount you paid for an eligible purchase after 90 days, American Express will refund your full purchase price, except handling and shipping. This only applies for items up to $300 and a maximum of $1,000 every calendar year.
Apply for the Blue Cash Preferred Card to get a 0% APR intro period for 12 months. After that, you get a variable APR ranging from 13.99% to 23.99%.
Chase Freedom Flex Credit Card – Best rotating bonus cash-back credit card
NEW Freedom Flex, with new ways to earn cash back: 5% Travel purchased through Chase — 3% Dining — 3% Drugstores — 5% Bonus Categories (spend limits apply, must activate quarterly).
— Chase (@Chase) September 14, 2020
Maybe you want your credit card to give you new rewards every season. If that’s the case, then the Chase Freedom Flex Credit Card might be the best cash-back credit card you need!
It’s classified as a rotating bonus category cash-back credit card. It’s quite a mouthful to pronounce, but it just means it gives rewards that are only available for a few months.
Of course, it has consistent rewards too. Here are the cash-back rates you’ll get from a Chase Freedom Flex:
- 5% from travel transactions made with Chase Ultimate Rewards
- 3% from restaurant dining, including takeout and qualified delivery services
- 3% from drugstore transactions
- 1% from other transactions
What’s more, you get 5% when you accumulate up to $1,500 on combined purchases that fit into the quarterly spending category. Click here to see the 5% cash-back calendar used by Chase.
From January to March 2022, purchases from grocery stores and eBay earn 5% cash-back. This bonus doesn’t apply to Walmart and Target transactions.
The Chase Freedom Flex Credit Card gives a 0% intro APR for 15 months from account opening on purchases and balance transfers. After that, you get a variable APR of 14.99%–23.74%.
How do these cards work?
After reading about the cash-back credit cards, you probably get the gist of how they work. Use them on eligible purchases, and you get a portion of the amount of money you paid.
I’ve given the best options for each type of cash-back credit card: flat-rate, tiered, and bonus category. Let’s talk more about them below:
- Flat-rate cards pay the same cash-back rate for every purchase. They’re the best choice if you want something easy to use. However, you might miss out on better rates or rewards for other brands.
- Tiered cards offer different cash-back rates for certain types of purchases. For example, you could get a tiered cash-back credit card with supermarket rewards if you spend more on groceries. If you don’t prefer specific brands or services, then the other cash-back tiers might not be worth it.
- Bonus category cards provide new rewards every three months. This might be a good idea if you don’t use credit cards often. Otherwise, you might be frustrated by the inconsistent benefits, or you’ll get confused as they change every season.
Tips before getting one
The first thing you should do before applying for a cash-back credit card is to check your credit rating. This is also known as performing a soft credit inquiry.
It’s “soft” because it doesn’t hurt your credit score. When you apply for a credit card, the card issuer will perform a “hard” credit check that reduces your score.
Do a soft check by getting a free credit report from the Federal Trade Commission website. On the other hand, you could get pre-approval for your credit card.
According to the Equifax credit bureau, a good credit score ranges from 670 to 739. This may change depending on your chosen credit card provider.
Once you’ve confirmed your credit score, read about the best cash-back credit cards. Note that you can find others, such as the Capital One SavorOne Cash Rewards Credit Card.
Choose at least three options, and then read their terms and conditions, such as annual and foreign transaction fees. Take note of the application requirements as well.
How Do Credit Card Limits Work?
The best cash-back credit cards can help with money management, but they can’t do all the work. You will still have to adopt good spending habits.
Avoid spending too much on things you don’t need, and set some money aside in a bank account. This will serve as an emergency fund that can help with sudden expenses.
For more financial literacy tips, check out more articles from Inquirer USA. It’s also a great way to stay up-to-date with the latest finance, investments, and other global trends!