Best Cash Back Credit Cards December 2023

Rates and welcome offers checked as of December 2, 2023.

Have you checked out the perks offered by rewards credit cards and decided that you want cold, hard cash? You’re hardly alone. A WalletHub survey found most people want cash back rewards over points and miles. 

To help you search, we have compiled a list of great cards that provide cash back on every purchase (or reward you with points that you can easily trade for cash at a strong value). 

Interest rates, fees, rewards and other terms listed in this article are subject to change. Before you apply for a credit card, check its current terms and conditions with the issuer.

Quick List

In a hurry? Here's a few of the very best cards on our list, along with quick links that let you jump down the page to read more information on each card we feature.

Best Cards for Flat-Rate Cash Back

These cards provide simple and strong cash back rewards on all spending. They are best for consumers that do not concentrate their spending in just a few areas.

Wells Fargo Active Cash® Card 

This card provides 2% cash rewards on all purchases, making it a great card to slip into your wallet if you prefer simple, straightforward rewards.

Three benefits sweeten this card deal. New cardholders earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months, a 0% APR on balance transfers and purchases for 15 months, and there is no annual fee.

Skip this card if you are planning significant travel outside the U.S., as there is a 3% foreign transaction fee.

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• Interest rate: 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then 20.24%, 25.24% or 29.99% variable APR.
• Annual fee: None.
• Top rewards rate: 2% cash rewards on purchases.
• Sign-up bonus: $200 back if you spend $500 in the first three months. 
• Redemption: Statement credit, cash at the ATM with a Wells Fargo debit or ATM card (in $20 increments), gift cards ($25 increments), or a credit to a qualifying Wells Fargo credit card, checking account or mortgage.
• Other benefits: Up to $600 per claim of protection for your cell phone against damage or theft if you pay your monthly wireless bill with the card.

Farmers Insurance Federal Credit Union Crystal Visa

Earn a whopping 3% cash back on all spending the first year you have this card. After that, you get 2.5% back — a strong rate that makes the annual fee worthwhile for those who spend enough to justify it. The amount of spending that exceeds $10,000 each month does not earn rewards, which are given as points that you can trade at a rate of a penny each for cash back.  

How can the card provide such stellar cash back rates? Most cards are issued by large, publicly-traded banking institutions that must deliver gains to stockholders. But as a credit union, Farmers Insurance is member-owned, with the express mission of returning profits to members. The downside of this approach is that the card application process is more lengthy than that of commercial competitors. 

This card also beats most of the competition when it comes to balance transfers, with a fee of only 2% compared to the usual 3% to 5%.

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• Interest rate: 0% for six months, then 12.99% to 18% variable APR.
• Annual fee: $99, waived the first year.
• Top rewards rate: 3% back on every purchase the first year, and 2.5% back on all spending from the second year on; the amount of spending that exceeds $10,000 each month does not earn rewards.
• Redemption: You collect rewards in the form of points, and they’re worth a penny each for a bank account deposit or statement credit ($50 minimum redemption).
• Membership: Anyone can become a member of Farmers Insurance FCU by joining the American Consumer Council and depositing $5 into a savings account.
• Sign-up bonus: $100 back if you spend $5,000 in the first three months.

Citi® Double Cash Card

Get a total 2% cash back on everything you buy: 1% when you make a purchase and an additional 1% when you pay the bill. Rewards are tracked as Citi ThankYou®  points, which you can exchange at a rate of 1 cent apiece for a statement credit, direct deposit into your bank account or check.  

This card's strength is its simplicity; there's no need to track rotating rewards categories, and the cash back rate of 2% is higher than that of most competing cards with no annual fee. The card launched a $200 sign-on bonus in November 2023 to keep pace with its closest rival, the Wells Fargo Active Cash card. One area where the Citi Double Cash card beats the Wells Fargo Active cash card is in its longer (18 months compared to 15 months) period of 0% APR on balance transfers (but not on purchases).

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• APR:  The APR for purchases is a variable 19.24% to 29.24%. 
• Balance transfer only offer: 0% Intro APR on balance transfers for 18 months; after that, the variable APR will be 19.24% to 29.24%, based on your creditworthiness.  If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
• Annual fee: None.
• Top rewards rate: A total 2% back on all spending  — 1% cash back when you buy, plus an additional 1% when you pay.
• Redemption: Rewards come in the form of Citi ThankYou® points, which can be redeemed for a statement credit, check or direct deposit into a bank account; or exchange points for gift cards, travel and other options through the ThankYou program, but point values vary for those redemptions.
• Credit rating: Solid cash back cards usually require a good to excellent credit rating; Citi recently announced that it will approve qualified applicants with "fair" credit ratings for this card.
• Sign-up bonus: Earn $200 cash back after you spend $1,500 on purchases in the first six months of your Citi Double Cash® card account opening.

Best Cards for Cash Back in Rotating Categories

Earn top rewards in categories that may change each month or quarter. These cards are a good fit for people who can keep track of and plan their charges in categories like online shopping, streaming, and travel.

Chase Freedom Flex℠

This card is a cash back workhorse, offering four ways to earn 5% cash back in the first year of card ownership. First, get 5% back on quarterly rotating categories like Amazon.com or gas station purchases, up to $1,500. Second, book travel through Chase Ultimate Rewards® for 5% back. Third, get 5% back on Lyft rides through March 31, 2025, and finally, earn 5% cash back on grocery store purchases (excluding Target® and Walmart®) on up to $12,000 spent in the first year (worth $600 cash back).

Dining, takeout and some delivery services earn 3% back, as do pharmacy purchases. And new cardholders get $200 back after spending $500 in the first three months. 

Given that there is no annual fee, this card offers a great value for the potential long-term cash back potential.

• Interest rate: 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% to 29.24%.
• Annual fee: None.
• Top rewards rate: 5% back up to $1,500 for combined purchases in bonus categories that you activate.
• Other rewards: 5% back on travel purchases made through Chase’s Ultimate Rewards program, 3% back on dining at restaurants and drugstore purchases, and 1% back on all other spending; earn 5% cash back on Lyft rides through March 31, 2025; that's 4% cash back in addition to the 1% cash back you already earn.
• Sign-up bonus: $200 back if you spend $500 in the first three months.
• Redemption: Cash back rewards are redeemed as statement balances or to accounts; travel rewards are tracked as Chase Ultimate Rewards points, which you can redeem at a rate of 1 cent each for cash back, travel bookings or gift cards.
• Member FDIC

U.S. Bank Cash+® Visa Signature® Card

This card may prove lucrative if you spend significant bucks on your wireless plan, utilities, or TV and internet services. That's because most of the rotating cash back categories earning 5% cash back (up to the first $2,000 spent) are related to tech and electronics. Travel booked through the U.S. bank rewards center also earns 5% back. 

Cardholders get 2% back in a rotating category of their choice like groceries, gas and EV charging, and 1% back on other purchases. 

New cardholders get a $200 sign-on bonus after spending $1,000 in eligible purchases within the first 120 days of opening the account. The card also offers 15 months of 0% APR for balance transfers and purchases, with no annual fee.

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• Interest rate: 0% for 15 months on purchases and balance transfers, then 19.49% - 29.74%
• Annual fee: None.
• Top rewards rate: 5% back in two categories you choose each quarter up to $2,000, then 1%; the options include wireless plans, utilities, and TV and internet services.
• Other rewards: 5% back on reservations booked through U.S. Bank's travel center, and 2% on one category of choice among three options: grocery stores, restaurants, or gas stations and electric-vehicle charging stations. Plus 1% cash back on all other eligible purchases; there is no limit to the cash back you can earn in 2% and 1% categories.
• Redemption: Redeem cash back as a statement credit, a deposit into a U.S. Bank checking or savings account, or a U.S. Bank prepaid debit card; cash back expires after three years.
• Sign-up bonus: $200 back if you spend $1,000 in the first 120 days.

U.S. Bank Shopper Cash Rewards™ Visa Signature® Card

This new card from U.S. Bank provides an outstanding 6% cash back on the first $1,500 of combined quarterly spending at two retailers you choose. That's a potential $90 every three months back to you if you spend strategically.  When combined with the $250 sign-up bonus, new cardholders could get some serious bucks back in the first few months of using the card.

If you are willing to book travel through the U.S. Bank travel program, you'll get 5.5% back, and you earn 3% back in another category you select. Moreover, the 1.5% back on other purchases beats many competing cards that only offer 1% outside of preferred categories. While there is no annual fee in the first year, consider your spending habits to ensure that when the $95 fee kicks in the second year, you will more than make up for it with cash back.

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• Interest rate:  Variable 19.74% to 29.74% APR for purchases and balance transfers.
• Annual fee: No annual fee in the first year, then $95 thereafter.
• Top rewards rate:  Get 6% cash back on the first $1,500 of combined quarterly spending at two retailers you choose from 24 major stores, including Amazon.com, Home Depot, Kohl’s, Lowe’s, Target and Walmart; you also get 3% back on the first $1,500 in quarterly spending in one category you choose; the options are wholesale clubs, gas and EV charging stations, and bills and utilities. 
• Other rewards: Earn 5.5% back on prepaid travel reservations through the U.S. Bank travel portal and 1.5% on all other spending — a higher rate than the 1% most cards offer outside their maximum-rebate categories.
• Sign-up bonus: Get $250 back if you spend $2,000 in the first 120 days.
• Redemption: Redeem cash back as a statement credit, a prepaid debit card or a deposit into a U.S. Bank account.

Best Cash Back Credit Cards for Savers

You get the best value with these cards if you stash rewards in a bank or investment account. 

TD Double Up Visa

The Double Up card provides a total of 2% cash back on all spending. TD Bank recently simplified this card, so that you no longer need to have a TD deposit account.  

While there are some real advantages to the card, such as no annual fee and unlimited rewards, there are also some drawbacks. There is no way to earn more than 2% back, as many cards now offer. And the card is only available to customers residing in the 15 states (and the District of Columbia) where TD Bank operates. 

The card charges a 3% foreign transaction fee, so use another card for international travel.

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• Interest rate for purchases: 20.24%, 25.24% or 30.24% variable APR.
• Balance transfer offer: 0% introductory APR on balance transfers for first 15 billing cycles, then 20.24%, 25.24% or 30.24% variable APR.
• Annual fee: None
• Top rewards rate: 2% back on all spending.
• Sign-up bonus: $100 back if you spend $1,000 in the first 90 days.
• State residence requirement: This card is only available to customers residing in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington, D.C.
• Redemption: Each purchase you make earns one point per dollar; you can redeem points for a statement credit or a deposit into the bank account of your choice.

Fidelity Rewards Signature® Visa

This card is a perennial winner for the 2% rewards rate that Fidelity Investments customers can earn on every dollar spent. In fact, Kiplinger has included the card in its annual list of best rewards credit cards five years in a row. There's no need to keep track of spending categories and no limit to the cash back you can earn.

You can increase your rewards through automatic or one-time deposits into your eligible Fidelity account. Every $2,500 spent equals a $50 deposit.

As a Signature tier Visa card, you get additional perks, including travel accident insurance, lost luggage reimbursement, roadside dispatch, and other benefits.

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• Interest rate: 19.24% variable APR. 
• Top rewards rate: 2% back on every purchase when you deposit rewards into an eligible Fidelity account.
• Other rewards: For Fidelity Wealth Management clients, cash-back rates are higher: 2.25% for those with at least $250,000, on up to 3% for those with $2 million or more; and you can enhance your rewards through automatic or one-time deposits into your eligible Fidelity account —  every $2,500 spent equals a $50 deposit.
• Annual fee: None.
• Redemption: You can divide rewards among up to five accounts—including a brokerage account, cash management account, 529 college-savings plan, retirement account, donor-advised fund, Fidelity Go robo-adviser account and health savings account.

SoFi Unlimited 2% Credit Card

This credit card from financial-technology company SoFi offers 2% cash back on all spending if you deposit your rewards into a SoFi investment or banking account or apply them to a SoFi student loan or personal loan. SoFi recently launched a travel program with Expedia, and the card offers 3% back when you book through the travel portal. What's most attractive for savers is that as an online bank with a high-yield savings account, Sofi offers up to a 4.30% APY on savings deposits.* 

The card has no annual fee and perks tailored to tech-savvy clientele, like cell phone damage insurance up to $1,000. 

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• Interest rate: 20.24% to 29.99% APR variable on purchases and balance transfers.
• Top rewards rate: Earn unlimited 3% cash back rewards when you use your SoFi Credit Card to book trips through the new SoFi Travel powered by Expedia; get 2% cash back on all spending if you deposit your rewards into a SoFi investment or banking account or apply them to a SoFi student loan or personal loan.
• *Other benefits:  SoFi’s Checking and Savings account is an attractive choice for rewards deposits, yielding up to 4.6% APY on the savings component of the balance and 0.5% APY on the checking portion if you have a monthly direct deposit into the account of at least $5,000. 
• Annual fee: None.
• Redemption: Points may be redeemed for statement credits or rewards offered through the SoFi Member Rewards Program.

Best Cash Back Cards for Groceries

These cards offer ample cash back on purchases at grocery stores.

Blue Cash Preferred® Card from American Express 

This card offers an unrivaled 6% cash back on up to $6,000 in U.S. supermarket spending each year, then 1%. The card's $95 annual fee kicks in the second year, but with a $250 intro bonus (after you spend $3,000 in purchases on your new Card within the first 6 months), your first three years of annual fees are more than covered.

The Card has a 2.7% foreign transaction fee, so select another credit card for travel abroad. See rates and fees. 

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• Interest rate: Low Intro APR: 0% on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.24% to 29.99%. Variable APRs will not exceed 29.99%. See Rates and Fees.
• Annual fee: $95, $0 introductory annual fee. See Rates and Fees.
• Top rewards rate: 6% back on up to $6,000 in annual U.S. supermarket spending, then 1%; and 6% on select U.S. streaming services.
• Other rewards: 3% back at U.S. gas stations and on transit, and 1% back on other spending; discounts offered (as statement credits) on the fitness app Equinox+ membership, and on streaming services included in the Disney Bundle subscription (Disney+, Hulu and ESPN+).
• Subscription discounts: Subscribers to the Disney Bundle, which can include Disney+, Hulu, and ESPN+ can earn $7/month back in the form of a statement credit after spending $9.99 or more each month on an eligible subscription (subject to auto renewal) with the Blue Cash Preferred® Card. Enrollment required. You can also get up to $120 in statement credits annually when you pay for an auto-renewing subscription to Equinox+ at equinoxplus.com with your card. That's $10 in statement credits each month. Enrollment required.
• Redemption: Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
• Intro bonus: Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months.
• Terms Apply.

Citi Custom Cash℠ Card

Get 5% cash back automatically in whichever of 10 categories you spend the most each month up to the first $500 spent, 1% cash back thereafter. Grocery-store and gas-station spending are among the qualifying categories.

The card has a 3% foreign transaction fee, so look for a good travel rewards credit card if you are headed out of the U.S.

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• Interest rate: 0% Intro APR on balance transfers and purchases for 15 months; after that, the variable APR will be 19.24% to 29.24%, based on your creditworthiness. The balance transfer fee is fairly high, at 5%. So, consider other balance transfer credit cards with lower fees if you are picking a card with this goal in mind.
• Annual fee: None.
• Top rewards rate: 5% back in whichever of 10 categories you spend the most each month up to the first $500 spent, 1% cash back thereafter.
• Redemption: Earn rewards as Citi ThankYou points, which you can trade for a statement credit, direct deposit or check; you can also trade points for other rewards.
• Credit rating: Solid cash back cards usually require a good to excellent credit rating; Citi recently announced that it will approve qualified applicants with "fair" credit ratings for this card.
• Sign-up bonus: $200 back if you spend $1,500 in the first six months.

Verizon Visa® Card

You have to be a Verizon Wireless customer to apply for this card, and it’s worth a look for those who qualify. If you apply for a card before 1/31/24, you can receive 5% back on your first $2,000 of purchases; that's an extra $100.

Get 4% back on groceries and gas, 3% back on dining and takeout, 2% on Verizon purchases and 1% on all other purchases. There are no limits or expiration dates.

The downside? You earn "Verizon Dollars" that can only be redeemed for a credit on your Verizon bill or for other goods or services offered by Verizon. If you have a family with multiple cell phones (up to twelve will qualify), you may have a high enough monthly phone bill to make this card worthwhile.

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• Interest rate: For New Accounts: Variable Purchase APRs are 26.99% or 30.99% for the Verizon Visa Credit Card or 23.99%, 26.99% or 30.99% for the Verizon Visa Signature Credit Card.
• Annual fee: None.
• Top rewards rate:  Get 4% back on grocery store and gas purchases.
• Other rewards: Get 3% at restaurants, 2% on Verizon purchases and 1% on other spending.
• Redemption: Earn cash back as Verizon Dollars, which you can use for various Verizon purchases, including paying your Verizon wireless or internet bill; you forfeit unused Verizon Dollars if your account is inactive for 24 months.
• Sign-up bonus:  $100 back if you make a purchase within 90 days. And if you apply for a card before 1/31/24, you can receive 5% back on your first $2,000 of purchases made by 3/31/24; that's an extra $100.

Best Cash Back Cards for Gas and EV Charging

If you drive an electric vehicle, see our article on getting cash back on your credit card for charging an EV. 

Abound Credit Union Platinum Visa

This card can help you save on gas, offering 5% cash back on fuel purchases paid at the pump plus 5% back in quarterly rotating categories. It also boasts a lower APR than many competitors.

Since Abound is a credit union, signing up for the card may be more time consuming than signing up for competing credit cards. Other cards also offer high rewards at the pump, but have limits on how much you can get back in a given year up to $6,000 or $7,000, whereas the Abound card does not. This card is best suited then to people who drive commercially or spend more than $7,000 per year on gas. 

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• Interest rate: 15.50% to 18% variable APR.
• Annual fee: None.
• Top rewards rate: 5% back on gas purchases (but not EV charging) as well as in categories that change each quarter, plus 1% cash back on all other purchases.
• Redemption: Cash back is automatically credited to your monthly statement.
• Membership: Anyone nationwide can become a member of Abound CU by joining the nonprofit organization USA Cares (no fee), paying a one-time, $10 membership fee to the credit union and depositing $5 into a savings account.
• Sign-up bonus: None.

Costco Anywhere Visa® Card By Citi

Members of Costco Wholesale can apply for this card, which provides 4% cash back on up to $7,000 per year spent at gas and EV charging stations. 

If you want easy access to your cash rewards, this is not the card for you. Cash back is released to cardholders at the end of February each year, and you can lose your rewards if you close your account before February. In addition, you'll need to do some sleuthing to make sure you can get credit at your local gas station; some stations linked to a convenience store are not eligible. 

These drawbacks likely won't concern loyal Costco customers, and Costco gas tends to be cheaper than many competitors.

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• Interest rate: Variable APR of 20.49% for purchases and balance transfers.
• Annual fee: None for Costco members, but see annual membership fees.
• Top rewards rate: Get  4% cash back on up to $7,000 per year spent at gas and EV charging stations, then 1%.
• Other rewards:  Cardholders also get 3% on restaurant and travel spending worldwide, 2% on Costco purchases and 1% on other spending.
• Redemption:  You receive cash back as a certificate each year after your February billing statement closes, and you can exchange it for cash or merchandise at Costco warehouses; certificates are redeemable through December 31 each year.
• Membership: Anyone can be a Costco member; the cost is $60 annually for a Gold Star membership or $120 annually for an Executive membership.
• Sign-up bonus: None.

Sam’s Club® Mastercard®

If you’re a member of Sam’s Club, consider this card for the 5% cash back it provides on up to $6,000 spent each year on gas. After that, you earn 1% back on gas until the end of the year.

You can get the 5% back on your card at any gas station that accepts Mastercard, and you can also get 5% for EV charging.

Cash back is redeemable only at Sam's Club stores or online site, so be sure you can spend enough at Sam's Club to make the rewards worth it.

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• Interest rate: For new cardholders, variable APR of 20.90% to 28.90% for purchases.
• Annual fee: None, but see annual membership fees.
• Top rewards rate:  Get 5% cash back on up to $6,000 spent each year on gas or EV charging, then 1% for the remainder of the year.
• Other rewards:  Restaurant spending earns 3% back, and so do Sam’s Club purchases if you’re a Plus member; all other spending (including Sam’s Club purchases for Club members) earns 1% back.
• Redemption:  Rewards are issued as Sam’s Cash, which you can redeem for purchases at Sam’s Club stores.
• Sign-up bonus: Get a $30 statement credit when you open a new account and make
  $30 in Sam’s Club purchases within 30 days.
• Membership:  Anyone can be a member of Sam's Club; it costs $50 annually for a Club membership or $110 annually for a Plus membership. Through January 31, 2024, Sam's Club is offering new Club membership at 50% off, for $25.

Best Cash Back Retail Cards

For shoppers who drop a pretty penny at Target, Walmart, or Amazon (and its subsidiary, Whole Foods), a retail card may pay off over time. After providing a handsome reward, usually 3% to 5% for in-store or online purchases, these cards typically reward 2% for categories like gas and restaurants and 1% for all other purchases. So rather than use your retail card everywhere, you will earn more if you pair it with a cash back card that provides more than 1% back.

Amazon Visa 

This card recently changed its name from "Amazon Rewards Visa Signature Card" to Amazon Visa. The card is intended for consumers who don't want to pony up the $135 annual Amazon Prime subscription fee.

For Prime members, the higher tier Prime Visa card offers better benefits, and provides a welcome offer.

The Amazon Visa card rewards customers with 3% back on Amazon.com and Whole Foods Market purchases, with no annual fee. The card also delivers 3% back at travel booked through the Chase Ultimate Rewards travel portal. 

Amazon Visa cardholders get 2% back on gas, restaurants, and drug stores, and 1% back on all other purchases.

There are no foreign transaction fees and no limits to how much cash back you can earn. 

• Interest rate: 19.49% to 27.49% variable APR for purchases. 
• Annual fee: None.
• Top rewards rate:  Amazon customers get 3% back for purchases at Amazon and Whole Foods Market, as well as travel booked through the Chase rewards program, and on rideshares and local transit purchases.
• Other rewards: Get 2% back at restaurants and gas stations, and 1% back on all other purchases; as a Visa Signature cardholder, you can can get extended warranties, and coverage for travel accidents, baggage delays and lost luggage.
• Redemption:  Points are worth a penny each if you exchange them for Amazon purchases, cash back, gift cards or travel bookings.
• Membership: No membership fee is required for the card, but for higher rewards offered by the Prime Visa, Prime membership is required at $139 per year. For the Prime Visa card, the variable APR for purchases is also 19.49% to 27.49%. The Prime Visa card also provides a welcome offer.

Capital One Walmart Rewards® Mastercard®

Walmart shoppers get 5% cash back on Walmart.com purchases, including orders for pickup from Walmart stores. This 5% cash back offer is only good for the first twelve months of card ownership, however. Cardholders get 2% when shopping in Walmart stores or gas stations, and 1% back wherever Mastercard is accepted.

Perks include extended price protection, warranty protection, travel accident insurance, 24-hour travel assistance services and other benefits.

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• Interest rate:  18.99% or 29.99% for purchases.
• Annual fee: None.
• Top rewards rate: Earn 5% when shopping online at Walmart.com, including pickup and delivery (excludes in-store purchases) during the first year of card ownership.
• Other rewards: Get 2% cash back in Walmart® stores, Murphy USA and Walmart® fuel stations, as well as in restaurants or on travel; get 1% back on all other purchases.
• Redemption:   You earn rewards as points, which you can trade at a rate of 1 cent apiece for cash back, travel or gift cards.
• Sign-up bonus:  Get 5% cash back on in-store Walmart purchases the first year if you use the card through Walmart Pay (Walmart’s mobile-payment app).

Target RedCard™

Love to shop at Target? Get a 5% discount on purchases at Target stores (including in-store Starbucks cafés) and at Target.com with this card.

There's no annual fee, and cardholders get free 2-day shipping and more time to return or exchange unwanted purchases. If using in-car pickup services, you also get 5% off. 

Plus, new RedCard holders can earn $100 cash back through two new welcome offers. 

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• Interest rate: 29.95% variable APR for purchases.
• Annual fee: None.
• Top rewards rate: Get 5% cash back on purchases made at Target stores and at Target.com.
• Other rewards:  Get 2% back on restaurant and gas purchases, and 1% back on other spending; cardholders get an additional 30 days to make returns and exchanges at Target, plus free shipping on most items from Target.com. 
• Redemption: Cash-back rewards are redeemable toward Target gift cards.
• Bonus offer: There are two RedCard bonus offers, worth $100 total. 1) Get a $50 credit when you open a RedCard Reloadable Account and spend $50 at Target. And 2) save $50 on a future qualifying purchase over $50 when approved for a credit or debit RedCard. This second offer is redeemable only through Target Circle™. Both offers are valid now when you get your new card through 12/09/2023.

How Does a Cash Back Card Work?

Like other rewards credit cards, a cash back credit card offers rewards on everyday purchases. Depending on the card, here are a few different ways your rewards can be structured.

Flat-rate rewards

These cards offer a flat rewards rate on every purchase you make — typically between 1% and 2% cash back. These cards are best for people who prefer simplicity, but they can limit your opportunities to maximize your rewards on some of your top spending categories. These cards used to offer only one percent back for each dollar spent, but that reward level has ticked up to 1.5% to 2% recently. According to Ted Rossman of creditcards.com, “two percent cash back is kind of like the gold standard for keeping it simple.”  

Tiered rewards

Tiered rewards cards offer different rewards rates based on where you spend your money. For example, you may earn 3% cash back on gas or groceries, 2% back on travel and 1% back on all other purchases.

These cards offer the chance to rack up a lot of cash back on some of your top spending categories, but it's likely that most of your spending will earn the lowest rewards rate, so it doesn't necessarily mean you'll get more rewards compared to a flat-rate card.

Rotating rewards

Just a few cash back credit cards offer rotating rewards. For example, you may earn 5% cash back on up to $1,500 spent each quarter in categories that rotate every few months. In one quarter, it may be groceries and department stores, and in the next, it could be specific retailers like Target, Walmart or Amazon.

Rotating-rewards credit cards make it possible for you to earn a high rewards rate on a variety of spending categories. But again, the base rewards rate for these cards is usually 1%, and that's what most of your spending will earn. 

Pros and Cons of Cash Back Cards

Pros of cash back cards

• Cash back cards are easy to understand and use. When it comes to simplicity and clarity, cash back cards are second to none among rewards cards. Cash back is expressed as a percentage of the amount you spend, so you know the exact value of your rewards. With travel rewards cards and other cards that provide points or airline miles for each dollar you spend, the value per point or mile may vary depending on which redemption you choose.
  
• They put cash in your pocket. Cash back is hard to beat if you want extra money to spend. You can often redeem cash-back rewards for a bank-account deposit, check or statement credit that reduces your credit card account balance. Or, as with some of our best cash back cards for savers, you may even be able to put the cash back in an investment account.
• You get good rewards for everyday spending. With a cash back card, you could get a healthy flat rate of about 2% back on everything you buy, or earn as much as 5% or 6% back on staples such as gas and groceries. Travel rewards cards tend to offer the highest rates on purchases of flights, hotels, dining out and other spending that usually falls into the non-essential category.

Cons of cash back cards:

• They don’t always offer the highest payback. If you prefer to get the maximum possible value out of the rewards you earn with a credit card, a cash back card may not be for you. With travel rewards cards, sometimes you can earn outstanding rewards rates by putting in some legwork. With a card that pays out airline miles, for example, you may squeeze out extra value by combing through flight schedules to find the best redemption rates.
• Sign-up bonuses are smaller. Travel rewards cards are known for offering hefty initial bonuses to draw in customers. Premium travel card Chase Sapphire Reserve, for example, recently provided 60,000 bonus points — worth $900 in travel redemptions — to new cardholders who spent at least $4,000 on the card in the first three months. Many cash back cards offer initial bonuses, but their values typically aren’t as high overall.
• Interest rates are high and variable. As with other rewards cards, the annual percentage rate on a cash back card is usually stiff. Average card rates run close to 20%, and some cards charge maximum rates closer to 30%. Plus, most cards have a variable interest rate tied to an index — often the prime rate. When the Federal Reserve raises short-term interest rates, the APR on your credit card increases, too.

Who Should Use Cash Back Cards?

A cash back card may be right for you if…

• You pay off your balance in full each month. For a disciplined spender, a cash back card can be a powerful tool, allowing you to collect hundreds of dollars per year in rewards. But if you carry a balance on the card from month to month, the interest you pay on the balance will likely erase the advantage of cash back rewards. Cash back cards are best suited to those who pay off their balance monthly and owe no interest. 
• You like to keep it simple. With a cash back card, you typically don’t have to think much about redemption values. As long as you redeem rewards for cash back, you should get the advertised percentage payback.
• You prefer to use a single card. Some cash back cards, including our winners for flat-rate cash back, provide 2% or more on every purchase. If you’d rather not carry several rewards cards in your wallet — which involves keeping track of which one offers the best rewards at each merchant you visit — choose a great flat-rate card instead. That said, you can certainly have more than one rewards credit card, just be sure to understand how many credit cards you should have to safeguard your credit score. And be sure to keep your credit cards active.
• You spend a lot on budget staples. If essentials such as groceries and gas eat a big part of your budget, you may get the most bang for your buck from a cash back card that provides top rewards in those categories.

Which Cash Back Card Is Best for You?

You have a lot of great options among cash back credit cards. As you narrow down the selection, take stock of the following:

• In what categories do you spend the most money? Take a look at your spending patterns to see where your cash typically flows, and match your top spending categories to a cash back card that supplies bountiful rewards in those areas.
• Should you pay an annual fee? Reviewing your budget will also help you determine whether the amount of cash back you could earn with a card would overcome the annual fee if it has one. If you don’t think you’ll gain enough in rewards to outweigh the fee, consider a no-fee card instead.
• Can you keep up with rotating categories? Some cards offer the top reward in a category that adjusts each quarter, or they allow you to select the top-earning category each quarter or month. That can be a lucrative strategy, but you’ll have to remember which types of purchases provide the best rewards at a given time. Plus, you may have to activate the maximum-reward category each quarter to earn the heightened cash back. If you’d rather not make the effort to keep it all straight, a simpler cash back card may be the best choice.
• Can you meet the initial bonus spending requirement? If a card offers a sign-up bonus, check how much you need to spend to earn it. You’ll typically need to spend at least a few hundred dollars — and often $1,000 or more — within a few months of opening the card to get an extra helping of cash back.
• Do you want to finance a large purchase interest-free? Several cards provide an initial period during which purchases (and balance transfers, in some cases) for new card members aren’t subject to interest — often, it lasts 12 months or more. If you’re thinking of making a large purchase, check whether the card offers a 0% balance transfer window. To avoid interest charges, make a plan to pay off your balance before the 0% offer ends.

How to Pick the Best Cash Back Card for You

There's no single cash back credit card that's best for everyone, so it's important to shop around and compare several factors to determine which is the right one for you: 

• Rewards rates: If you don't want to keep track of different rewards rates, consider a flat-rate rewards card. If you want to maximize rewards on certain purchases, find a tiered or rotating rewards card with rewards categories that align with your spending.
• Welcome bonus: Consider the amount of each card's cash bonus, as well as the minimum spending requirement you need to meet to earn it. Only get a card if you can afford to meet that spending threshold without overspending.
• Redemption options: While cash back credit cards tend to offer more straightforward redemption options compared to travel cards, your redemption options can still vary. For example, some cards may only offer statement credits, while others may offer direct deposit, paper checks, gift cards, travel, online shopping and more.
• APR promotion terms: If you're after a 0% APR promotion, look at the length of each card's promotion and which transactions are included — purchases, balance transfers or both. If you want to do a balance transfer, look at each card's balance transfer fee.
• Other card benefits: Depending on your lifestyle, you may want to take advantage of other card benefits. For example, some cards may offer credits or complimentary subscriptions with popular retailers, travel and shopping protections and more.
• Annual fee: While most cash back credit cards don't charge an annual fee, there are some that do. If a card does charge an annual fee, look at the rewards program and other benefits to determine whether you can get enough value to make up for the yearly charge.

Take your time to research several options to determine the right fit for you. In some cases, it could make sense to use more than one cash back credit card to take advantage of the different bonus rewards categories and benefits. 

Can You Earn Cash Back Rewards With Bad Credit?

Most cash back credit cards require a good credit score or better, but there are some credit cards available that you can get with bad credit. However, it's essential to look at more than just the rewards program to determine whether such a card is a good fit for you. Here are some other things to consider: 

• Security deposit: Some cash back credit cards for bad credit are secured cards, meaning you need to put up a security deposit — usually equal to your desired credit limit — to get approved. Depending on the card, you may not get that money back until you close your account.
• Fees and interest: Some cash back credit cards for bad credit may charge an annual fee and a sky-high interest rate. 
• Credit-building features: Make sure the card issuer reports your account activity to all three credit bureaus; otherwise, your credit-building efforts won't have as much of an impact. Also, check to see if the card issuer offers credit line increases.

Take your time to consider several options before you make a decision. 

Cash back vs. travel credit card: which is better?

Both cash back and travel rewards credit cards can offer a lot of value, but the right one for you may depend on your travel habits, budget and preferences. Here's a quick comparison: 

• Annual fee: Most cash back credit cards don't charge an annual fee, while the opposite is true for travel credit cards.
• Welcome bonus: If a cash back credit card offers a welcome bonus, it may range from $100 to $300 in most cases. With a travel credit card, a bonus can range from $200 to $1,000 or more.
• Rewards: Cash back credit cards can offer flat-rate, tiered or rotating rewards, while travel credit cards only offer flat-rate or tiered rewards. When it comes to redeeming rewards, travel points or miles aren't as flexible as straight cash back, but you could potentially get more value with certain programs. 
• Intro APR: Many cash back credit cards offer a 0% APR promotion on purchases, balance transfers or both. On the flip side, travel rewards cards typically don't offer this feature.
• Other benefits: Cash back credit cards generally don't offer a lot of additional value beyond rewards and a 0% APR promotion (some exceptions exist). In contrast, some travel credit cards may offer hundreds of dollars in value each year in the form of travel perks. 

Other Best Buy Credit Cards

• Kiplinger's guide to the best rewards credit cards
• Kiplinger's guide to the best business credit cards
• Kiplinger's guide to the best balance transfer credit cards
• Kiplinger's guide to the best travel rewards cards
• Kiplinger's guide to the best student credit cards
• Kiplinger's guide to the best 0% APR credit cards