On top of that, it offers incentives, including a sign-up bonus and an intro APR on purchases and balance transfers. In recent years, a 1. You can find any number of cards with higher rewards rates. New Offer! With the new Unlimited Cash Rewards credit card, you can earn 1.
That means you could earn up to 2. No limit to the amount of cash back you can earn and cash rewards don't expire. After the intro APR offer ends, Contactless Cards - The security of a chip card, with the convenience of a tap. This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now. The bonus offer is rich for a no-fee cash-back card.
The rewards structure is somewhat complicated. That means you could earn up to 5. The original 1. You earn unlimited 1. Simplicity is this card's strength, but if you're willing to put in a little effort, you can score bigger cash back with other options, especially those with bonus categories. No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn.
If you're willing to put in a little work, it's one rich card. You have to opt in to the bonus categories every quarter, which can be a hassle.
See if you qualify for a better offer with Chase:. The SoFi Credit Card gives you a strong incentive to apply your cash back directly to savings or investments including crypto , or use it to pay down a SoFi loan. Make 12 on-time payments, and your APR will drop 1 percentage point. Points are worth only half as much when redeemed for statement credit. To get maximum value, you'll have to be a SoFi customer beyond just carrying the card.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
Terms Apply. Click the card name to read our review. Read our review. Our pick for: Flat-rate cash back — high ongoing rate. Our pick for: Flat-rate cash back — high rewards for bigger spenders. It offers the highest ongoing rewards rate of any flat-rate cash-back card, but it also charges an annual fee, and it limits the amount of spending that earns rewards.
That limit is high, but it's still a limit. Our pick for: Bonus rewards — groceries, gas, commuting, streaming. The rewards it pays in those categories — particularly at U.
The generous benefits come at a cost, though: Unlike most cash-back cards, this one charges an annual fee. Now it's even better, with bonus rewards on travel booked through Chase, as well as at restaurants and drugstores. Our pick for: Bonus rewards — high rates on dining, at grocery stores and more. Love the night life but dead-set against paying an annual fee?
It pays a lower cash-back rate on dining and entertainment than the regular Savor card, but the rewards are nevertheless quite good. The sign-up bonus is smaller than on the annual-fee version, too, but it's still solid. Category activation can be a hassle, but if your spending matches the categories — and for a lot of people, it will — you can rack up hundreds of dollars a year. In past years, those categories have included common spending areas like grocery stores, restaurants, gas stations and Amazon.
Category activation can be a hassle, but if your spending aligns with those categories and for most households, it probably will , you can rake in serious rewards. You also get the issuer's signature "cash-back match" bonus in your first year.
And unlike competitors, there's no activation schedule or bonus calendar to keep track of. You also get bonus rewards at grocery stores and supermarkets, plus a great new-cardholder bonus offer.
Our pick for: Customizable rewards — wide selection of categories. If you don't mind putting some work into your rewards, check out the U. It might be the most customizable cash back card available. There's a good bonus offer for new cardholders, too. Cash-back credit cards offer the most useful and flexible rewards currency there is: cash. Points and miles can have squishy value and limited flexibility when redeeming. But a dollar in cash back is a buck you can spend anywhere.
Also, cash-back cards are typically the simplest rewards cards: You get a certain amount of cash for every dollar you spend. You might get more cash back for certain types of spending — at restaurants or gas stations, for example.
Think of it this way: A cash-back rewards card is like getting a discount on everything you buy with the card. The fun comes when you use the card everywhere and your cash back piles up. Even the best cash-back credit cards probably aren't as flashy as travel rewards credit cards, but as with the hare and the tortoise, sometimes slow-and-steady wins the race.
Cash-back credit cards come in three basic types that determine how you accumulate cash rewards. Flat-rate cash-back cards give you a set percentage of cash back regardless of what you buy with the card.
A good benchmark is 1. It pays unlimited 1. With some cards, you get to choose which categories earn the higher rewards. You have to "opt in" or "activate" the bonus categories online each quarter. Many cash-back cards earn a higher rewards rate for certain purchases. Examples of common bonus categories:.
So it applies to groceries, cleaning supplies, toiletries, prepared meals and anything else bought at the supermarket. You can often buy a gift card for a restaurant or retailer at the supermarket, and it counts as a supermarket purchase.
Often warehouse clubs and superstores, like Target and Walmart, are excluded. For larger households, this can be one of the most valuable categories to get accelerated rewards. Sometimes called "dining," this usually includes everything from fast-food restaurants and pizza delivery to white-tablecloth fine dining.
Gas stations. This is often described as "gas" and usually applies to traditional gasoline service stations, such as Mobil, Shell and BP. It usually doesn't extend to gas stations affiliated with supermarkets or warehouse clubs. Often, it counts everything you buy in the associated convenience store, too, although a few cards count only gas paid for at the pump.
That last point hints at the key to cash-back categories — the best ones are where you spend the most money regularly. Other bonus categories you might see include entertainment, drugstores, home improvement stores, wholesale clubs and mobile wallet purchases.
Rotating bonus category cards sometimes designate specific retailers for bonus rewards for a quarter, such as Amazon or Walmart. Which type of cash-back credit card is right for you depends on how you spend money and your patience for tracking rewards categories. It also offers bonus cash back on dining and at grocery stores. The entertainment category includes movie theaters, plays, concerts, sporting events, tourist attractions, aquariums, zoos and more.
It also offers extended warranty, travel accident insurance, hour travel assistance services and a complimentary concierge service.
The Capital One Savor is rated higher due to its larger welcome bonus, but after a year of having the card, value for most users will be similar when you factor in the annual fee. You can find almost anything you need on Amazon. Welcome Offer: Amazon. Other Benefits and Drawbacks: While rewards at Amazon and Whole Foods are excellent, rewards for other purchases are just average.
You can redeem rewards as an Amazon credit with no minimum. The Amazon Prime Rewards Visa Signature Card is packed full of travel benefits including no foreign transaction fees, travel accident insurance, baggage delay insurance, lost luggage reimbursement, travel and emergency assistance and secondary auto rental collision damage coverage.
Other Benefits and Drawbacks: The Walmart Rewards Card can be incredibly rewarding but you may have to jump through some hoops to get the most value out of it. If you typically spend in unusual categories that are not on the list of U. The Alliant Cashback Visa Signature credit card has one of the lowest interest rates in the cash back space—from Rewards: Earn 2.
After that, no cash back will be earned. In order to apply, you must become a member of the Alliant Credit Union. In order to join, you or one of your extended family or household members must have ties to the armed forces, Department of Defense or National Guard. If you are eligible to join, this card is a tough one to beat.
Rewards: Earn 3 points per dollar at restaurants and on food delivery, at supermarkets, on gas and transit and 1 point per dollar on everything else. Eligibility requirements to join Navy FCU mean that not everyone is going to be eligible to apply for this card.
However, if you can, it does offer solid rewards. It offers a 1. When you consider a new credit card, no matter the type, it helps to ask yourself some questions. The best cash back credit card is the one that best fits into your lifestyle.
The right cash back card for someone else may not be the right cash back card for you. Forbes Advisor aims to help you by identifying what each cash back card is best for, but you should always do the math yourself and consider not only how much cash back you could earn but also how you might use the other card benefits.
As you compare cards and credit card issuers, there are some things that you should incorporate into your evaluations. There are many great cash back cards on the market, but the card that will earn you the greatest rewards depends on your spending habits.
Before committing to a card, take a look at your budget and see where you spend most frequently. Then choose the card that best fits your lifestyle. A cash back credit card is one that allows you to earn a percentage back on your credit card spending. Typically, you can redeem those rewards for money. The reward can be issued either as a statement credit, a check sent via mail or deposited directly into a qualifying bank account.
There are many types of cards that offer cash back rewards including ones that earn the same flat rate on everything you buy, ones that offer tiered rewards where certain areas of spending earn higher rewards than other categories and cards that offer elevated rewards in specific categories that can change quarterly.
Some cards let you redeem your cash earnings in any amount, at any time while others require a minimum balance to cash out. The credit card that will earn you the highest cash back rewards will depend on your spending habits and tolerance for tracking rewards. If you prefer a simple cash back scheme, a card that earns the same flat rate on all your spending could be a fit.
The highest-paying cash back card available today depends on how you spend money and how many cards you want to have. The card pays 2. In general, the IRS treats cash back rewards on a credit card as a discount and not earnings, especially if you take your cash back rewards as a statement credit on your credit card.
This means that your cash back rewards are not taxable. Some cash back rewards never expire and others may require card activity to keep your rewards from expiring. In addition, be sure to cash out your rewards before you close a credit card account. She's a credit card enthusiast and digital nomad who has leveraged credit cards to travel around the world for next to nothing, often in style.
Prior to working for Forbes, she contributed to other leading publications in the credit cards and rewards space. She would like to visit every country and try as many different local culinary specialties as possible.
Select Region. United States. United Kingdom. All ratings are determined solely by our editorial team. Caroline Lupini. Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Read more. Find the Best Credit Card. Click Here To Apply Now. Forbes Advisor created additional star ratings so that you can see the best card for specific needs.
This card shines for this use, but overall the star ratings may differ when compared to other cards. While any cash rewards credit card is better than nothing, choosing a card that is tailored to your needs will ultimately lead to more rewards. Here are some factors to consider as you narrow down your selection of cash rewards credit cards:. Consider your spending — If your spending tends to be high in areas like groceries or gas, it usually makes sense to choose a rewards card that offers more cash back in those categories.
Look at the different cash rewards offers available and select the card with more earning potential where you spend the most. Take annual fees into account — Paying an annual fee on a rewards card might make sense if you spend enough on your card each year.
When weighing the pros and cons of choosing a card with an annual fee, always run the numbers. Only choose a card with an annual fee when you plan on earning more than enough rewards to make up for it. Always do the math and make sure the sign-up bonus is a perk, not a hindrance. Explore the rewards program — While some cash rewards cards offer several ways to redeem your points, others only allow you to redeem them for a statement credit.
If you want a rewards card that lets you redeem your points for gift cards, travel rewards , merchandise, or airline miles make sure you know that ahead of time. Know your limits — In addition to knowing the limit you can spend on your card, you also need to be aware of any limits on cash-back offers as well.
Know your credit score — Almost all of the best rewards credit cards require excellent credit. If your credit score is mediocre, it might be wise to spend some time rebuilding your credit — and your score — before pursuing a card that offers rewards. The decision to use a rewards credit card to earn cash-back on your everyday spending is almost a no-brainer. But, finding the best one? Just remember, the best cash rewards cards will provide you with a steady stream of fun rewards you can use for almost anything — and with minimal effort.
Ryan Guina is the founder and editor of Cash Money Life. He is a writer, small business owner, and entrepreneur. Ryan started Cash Money Life in after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then. He also writes about military money topics and military and veterans benefits at The Military Wallet.
Ryan uses Personal Capital to track and manage his finances. Personal Capital is a free software program that allows him to track his net worth, balance his investment portfolio, track his income and expenses, and much more.
You can open a free account here. These responses are not provided or commissioned by the bank advertiser.
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