Best Cash Back Credit Cards
Get the best cash-back credit cards this year. They all enable cardholders to return a portion of what they paid for each transaction. You have 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. After finding the ones you like, you must compare them to each other to find the best. Fortunately, this article will recommend the best cash-back credit cards of the year to earn rewards as soon as possible!
Best Cash Back Credit Cards
I’ll jump right into it by listing the top cash-back credit cards of 2022. Getting one without understanding how they work is not a good idea, 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.
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. You will not earn the other 1% if you spend 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 can 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 with an eligible travel card. This lets you access travel redemptions from Citi’s multiple travel partners.
Apply for the Citi Double Cash Card for Amexa 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 Cashback 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, ride shares, 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 with its global assist hotline during a travel emergency.
- 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 for handling and shipping. This only applies to items up to $300 and a maximum of $1,000 yearly. wrong
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 Cashback 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
You may wrong want your credit card to give you new rewards every season. If that’s the case, the Chase Freedom Flex Credit Card might be your best cash-back credit card!
It’s classified as a rotating bonus category cash-back credit card. It’s quite a mouthful to pronounce, but it just means it only gives rewards 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
Moreover, you get 5% when accumulating 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 14.99%–23.74% variable APR.
Read More: What Is Credit Card Debt Forgiveness? Is It Right for Me?
How Do These Cards Work?
After reading about cash-back credit cards, you probably understand how they work. Use them on eligible purchases, and you get a portion of the 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, 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.
Read More: Consolidate Credit Card Debt: 5 Tips To Overcome Debt
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 issuer performs 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. You can find others like the Capital One SavorOne Cash Rewards Credit Card.
Please choose at least three options, then read their terms and conditions, such as annual and foreign transaction fees. Take note of the application requirements as well.
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Final Thoughts
The best cash-back credit cards can help with money management but 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 global trends!
Frequently Asked Questions
How does a cash-back credit card work?
A cash-back credit card works by offering a percentage of your purchases back to you as cash rewards. When you make eligible purchases using the card, a certain percentage of the transaction amount is credited to your account as cashback. This cashback can be accumulated over time and typically redeemed as a statement credit, a deposit into your bank account, or in some cases, as a gift card or merchandise.
What credit score is typically needed to qualify for a cash-back credit card?
The credit score requirements for cash-back credit cards vary depending on the card issuer and the specific card you’re applying for. Generally, cash-back credit cards require a good to excellent credit score, which is typically considered to be 670 or higher. However, it’s important to note that credit scores are just one factor considered during the application process, and other factors, such as income and existing debts, also play a role.
How can I maximize my cash-back rewards with a credit card?
To maximize your cash-back rewards, consider a few strategies. First, understand the spending categories that offer higher cashback rates on your card. Align your spending accordingly to earn more cashback in those categories. Secondly, take advantage of any promotional or bonus offers your card issuer provides. This could include making extra cash back for reaching a certain spending threshold within a specific timeframe. Lastly, consider pairing your cash-back credit card with other rewards or loyalty programs to maximize your rewards-earning potential.
Published on January 27, 2022; Updated on June 30, 2023.
