Best Cash Back Credit Cards 2023
Flex Chase FreedomSM
With no annual fee and useful bonus categories, the Chase Freedom FlexSM is a great option for practically anybody looking to earn cash back.
Rewards: The Chase Freedom Flex is a powerful tool for accumulating rewards. Earn 5% cash back on up to $1,500 in quarterly rotating categories (activation required), 5% on travel booked using Chase Ultimate Rewards®, 3% on dining and prescription medicine purchases, and 1% on all other transactions.
Earn a $200 incentive after spending $500 on purchases within the first three months of creating your account.
Annual Cost: 0
The Chase Freedom FlexSM offers purchase protection and extended warranty protection in addition to the helpful bonus categories.
Along with other travel perks, the Freedom Flex provides secondary auto rental collision damage insurance, trip cancellation and interruption insurance, travel and emergency help services, and more.
When you use your Freedom Flex card to pay your cell phone payment, you'll also get cell phone protection as a cardholder. This coverage is only good for two claims totaling $1,000 per year and up to $800 for each claim. There is a $50 deductible.
The use of this card with a Chase Sapphire Preferred®, Chase Sapphire Reserve®, or Ink Business Preferred® Credit Card can make it even more advantageous. This is because you may transfer the points you earn on your Freedom Flex to one of these premium cards, where they can be used to redeem rewards through Chase Ultimate Rewards or Pay Yourself Back for 25% to 50% greater value. Additionally, points can be transferred in a 1:1 ratio to Chase's hotel and airline partners, such as United and Hyatt.
Freedom Unlimited by Chase
Another fantastic option for cash back without an annual fee is the Chase Freedom Unlimited®. Though we believe the majority of users will earn a little bit more with the Freedom Flex, it provides significantly simpler reward-earning categories.
Rewards: Receive 5% cash back when booking travel through Chase Ultimate Rewards®, 3% cash back when dining and shopping at participating pharmacies, and 1.5% cash back on all other transactions.
Greeting Offer Earn a 1.5% cash back bonus on all purchases made in the first year as a cardholder on up to $20,000 in purchases. This can amount to up to $300 in cash back.
Annual Cost: 0
Additional Advantages and Negatives The Freedom Unlimited includes extended warranty protection and purchase protection, just like the Freedom Flex. It also provides various advantages for traveling, such as a journey
It can also be used in conjunction with a high-end Chase rewards card to increase the value of valid redemptions.
Credit Card from Capital One SavorOne Cash Rewards
For individuals seeking a cash-back card with an introductory purchase APR, the Capital One SavorOne Cash Rewards Credit Card is a viable option. This card offers 0% introductory APR on purchases and debt transfers for 15 months; after that, the APR ranges from 19.24% to 29.24% and there is a 3% fee for transfers made within the first 15 months. It's also one of the few credit cards that give cash back on entertainment purchases.
Rewards: Receive 3% cash back on dining, entertainment, popular streaming services, and grocery stores (excluding superstores like Walmart and Target), 5% cash back on hotels and rental cars reserved through Capital One Travel, 8% cash back on purchases made through Capital One Entertainment, and 1% cash back on all other purchases.
Earn $200 in bonus cash when you spend $500 within the first three months of opening your account.
Annual Cost: 0
Additional Advantages and Negatives There are no international transaction fees associated with the Capital One SavorOne Cash Rewards credit card. Additionally, it provides a free concierge service, 24-hour travel help, and an extended warranty.
Consider the $95 Savor Rewards Credit Card* if you want more perks than what the Capital One SavorOne card gives.
Bank of America Active Cash® Card
Forbes Advisor's top selection for a flat-rate cash-back card that offers 2% cash rewards on purchases is the Wells Fargo Active Cash® Card.
Rewards: Receive 2% in cashback on purchases.
Earn $200 in cash rewards after making $1,000 in purchases during the first three months with our welcome offer.
Annual Cost: 0
Additional Advantages and Negatives The Wells Fargo Active Cash offers solid flat-rate rewards in addition to a cell phone protection benefit of up to $600 twice a year, subject to a $25 deductible and a 0% intro APR on purchases and qualifying balance transfers for 15 months from account opening, after which a 19.49%, 24.49%, or 29.49% variable APR takes effect. Within 120 days, balance transfers are eligible for the introductory rate and 3% charge.
Cash Back from Discover it
After your first year, the Discover it® Cash Back card will automatically match all of the cash back you have accrued, without any restrictions. This match may easily surpass the bonuses you can receive from other cards, depending on your spending. The Discover it® Cash Back program, with its revolving bonus categories, still provides worthwhile benefits after the first year.
Rewards: When enabled, earn 5% cash back on regular purchases made at various locations each quarter, subject to a quarterly spending cap of $1,500. Additionally, automatically receive limitless 1% cash back on all other purchases.
Greeting Offer After the first year as a card member, Discover will automatically match all cash back earned. There is no minimum or maximum prize amount.
Annual Cost: 0
Additional Advantages and Negatives The main drawback of Discover it® Cash Back is that to receive the greater cash-back rate, you must remember to activate the bonus category each quarter. You can choose to receive notifications from Discover when the bonus category changes.
High-value spending categories like grocery, Amazon.com purchases, gas stations, and restaurants have usually been Discover's bonus categories. Keep in mind that compared to other card networks, Discover has a smaller global footprint.
Customers do receive useful benefits from Discover. There is no minimum value required to redeem your points for cash, so you can do it whenever you like. When checking out on Amazon.com, you can apply your points. Additionally, if your card is lost, you can use the mobile app or online to freeze your account and get a free Credit Scorecard with your FICO credit score.
For 15 months, this card's introductory APR on purchases and qualifying balance transfers is 0%. Then, a standard rate that ranges from 16.24% to 27.24% is applicable. If you want to consolidate high-interest debt or make a large purchase soon, this is a cost-saving choice because the balance transfer fee can be as much as 5% of the transferred amount.
Transfer Discover it® Balance
The only difference between the Discover it® Balance Transfer and the Discover it® Cash Back is the introductory APR rate, which is 0% for 6 months on purchases and 18 months on qualified balance transfers. The normal APR range is 16.24% to 27.24% at that point. There is a balance transfer fee of up to 5% of the transferred amount (the offer made by Forbes Advisor may differ from the one made to the general public).
Rewards: Earn up to 5% cash back on regular purchases made at a variety of locations each quarter, including Amazon.com, supermarkets, restaurants, and petrol stations, and 1% cash back on all other purchases.
No welcome bonus is available with this card.
Annual Cost: 0
Additional Advantages and Negatives The Discover it® Balance Transfer's major drawback is that, like Discover it Cash Back, you must remember to activate the bonus categories each quarter to receive the higher cash-back rate. You can choose to receive notifications from Discover when the bonus categories change.
American Express Blue Cash Preferred® Card
We all need food to exist, and if you'd rather buy groceries at the supermarket than eat out, American Express's Blue Cash Preferred® Card (Terms apply. One that you might want to think about is (see rates & fees). Even with a $0 introductory annual charge for the first year and a subsequent $95 annual fee, the large rewards at American petrol stations and supermarkets can help many families overcome the cost.
Rewards: Receive 6% cash back at U.S. supermarkets on up to $6,000 in annual purchases (then 1%), 6% cash back on selected U.S. streaming services, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses, and more), and 1% cash back on all other eligible purchases. Reward Dollars, which can be redeemed for a statement credit, are received as cash back.
Greeting Offer After making $3,000 in purchases within the first six months receive a $250 statement credit.
Annual Fee: $0 for the first year, followed by $95
The Blue Cash Preferred® Card from American Express also provides return protection*, secondary car rental loss and damage coverage**, and an up to $120 yearly statement credit for Equinox+ membership, among other advantages and disadvantages. (If you buy a membership through the Equinox+ app or a third party, you won't get this bonus. Cardholders must enroll in their Amex card account to use this benefit.)
The American Express Blue Cash Everyday® Card gives 3% cash back at U.S. supermarkets, U.S. petrol stations, and online retail transactions in the U.S. (up to $6,000 in each category each year in expenditures, then 1%), and 1% cash back on other purchases if you'd want to avoid paying an annual fee. Reward Dollars, which come in the form of cashback and may be quickly exchanged for statement credits without paying an annual fee (Terms apply), are received. View our rates & fees.
Methodology
Numerous cash-back credit card profiles were reviewed over by Forbes Advisor. We concentrated on well-known banks with internet accessibility and distinctive credit cards from lesser-known banks. In terms of cash-back rates and categories, fees, welcome bonuses, and other benefits and features, we looked for credit cards that outperformed comparable cards.
What Is Credit Card Cash Back?
With a cash-back credit card, cardholders can get a percentage of their qualified credit card purchases back. A cardholder can typically exchange points for cash that is issued as a statement credit, a check that is mailed to them, or money that is put immediately into a certain type of bank account.
Many different credit card types offer cash-back benefits, including those that earn a flat rate on all purchases, those with tiered rewards where some categories of spending receive more rewards than others, and cards with increased earnings in select categories that fluctuate every three months.
How Does a Credit Card With Cash Back Operate?
You will receive a percentage of your expenditure back each time you use your card to make a transaction. The terms of your specific card will determine the precise amount you can earn. These earnings are accumulated in your card's rewards account, where you can redeem them following the conditions set forth by your issuer. Some cards let you cash out your cash rewards at any time for any amount, while others need a minimum balance.
Depending on the card, you may be able to get your money in one of several different ways, including a deposit or check for some rewards and a statement credit against your balance for others.
Why Offer Cash Back on Credit Cards?
To encourage card use, card issuers provide cash-back incentives. Credit cards typically offer convenience, fraud protection, and the opportunity to quickly establish and maintain a strong credit history, but earning cash back enables users to reduce the transaction fees paid to merchants.
Banks, card issuers, and card networks receive upwards of $83 billion in revenue through transaction fees. These charges—which are normally between 2% and 4% of the total transaction—are divided among the banks, card issuers, fintech firms, and card networks that assisted in making the transaction. The customer loses out on the transaction fee when they receive cash back.
As an incentive for consumers to apply for and use the card, issuers may offer 1.5% cash back if, for instance, the transaction cost is 3%. Rewards cards are typically utilized to draw in more suitable clients—those with greater credit and higher incomes. Although the issuer and its partners make less money on each transaction, they also run a lower risk of default by choosing clients who are less inclined to do so. Because the higher-income consumer is encouraged to spend more money with the card to receive more rewards, the issuer and its affiliates may also make more money overall.
Different Cash-Back Credit Card Types
Flat-rate, tiered-rate, and rotating category credit cards are the three types of cash-back cards that predominate the market.
0% APR Credit Cards
Flat-rate cash-back credit cards don't have spending caps or category restrictions and offer the same amount back on eligible purchases, usually between 1% and 2%.
Pay-As-You-Go Credit Cards
Tiered rewards cash-back cards give you different amounts back depending on what you spend your money on. For instance, some credit cards provide higher rewards for eating or travel expenses while charging less for other types of purchases.
Credit Cards of Various Categories
With rotating bonus category cards, you can spend in certain categories and receive higher-than-average rewards, usually around 5%, up to a quarterly cap. The rewards percentage will thereafter decrease to 1%. 1% cash back is normally given on all other purchases made with the card. Every three months, bonus categories frequently vary.
Considerations for Choosing a Cash-Back Card
The credit card that fits your lifestyle and spending patterns the best is the greatest cash-back credit card. The ideal cash-back credit card for one person might not be the ideal cash-back credit card for another.
Forbes Advisor strives to assist you by highlighting the greatest uses for each cash-back card, but you should always do the arithmetic yourself and take into account both the potential amount of cashback as well as other card features.
You're ready to compare credit cards and look for the best one for you once you've determined how much you spend in various categories and what other card features might be useful to you. There are some factors you should consider as you evaluate different cards and credit card companies.
* Do you charge an annual fee? How much would you need to use the card to receive cash back that would at least cover the annual fee? What does that mean in comparison to a card like that with no annual fee? What other costs might you need to consider?
* Credit card interest rates are often higher than those for other types of loans in terms of annual percentage rate (APR). A credit card might not be the best option for you if you don't believe you can pay it off in full each month. You should be very careful to consider the amount of interest you might pay on purchases and balance transfers if you want a credit card but don't think you'll be able to pay it off in full. If this describes you, you might think about a balance transfer-friendly card or one with an introductory 0% APR deal.
* Rate of cash-back: Each card has a different cash-back rate. Choose a card that will reward you based on the areas of your life where you spend the most money.
* Are you going to be able to benefit from the bonus categories? You shouldn't use a cash-back card that offers 3% on gas and groceries if you use the train and prefer to eat out instead.
Rewards and redemption: Is it possible to use the cash back however you, please? Numerous cash-back cards provide several redemption options, including statement credits, checks, deposits into savings or investment accounts, discounted travel arrangements, and so forth. Certain cards have greater limitations than others. Make sure you are aware of the process for redeeming your well-earned incentives.
How to Use a Credit Card to Earn Cash Back
The process of withdrawing the cash back you've accumulated from all those tedious swipes, taps, and chip insertion will differ from issuer to issuer, but generally, you'll submit a request via an issuer's app or website after logging into the mobile or online banking system. Some accounts automatically redeem cash back. Your options for redeeming your cashback may include statement credits, deposits into eligible bank accounts, or checks the issuer will mail to you. You can use the cash back from some cash-back cards to make purchases to redeem it.
Cash back credit cards: Advantages and Drawbacks
Cash-back credit cards are a great way to increase your rewards balance with each eligible purchase you make. In most cases, there is no learning curve involved, and you may easily claim your rewards in your online account—in certain cases, they are even automatically applied as a statement credit. Additionally, it's simple to compute your earnings so you'll know exactly what to anticipate.
One drawback of a cash-back credit card is that your earnings are capped at a certain amount. If you are ready to make the time to learn about the associated points or mile program, several alternative credit cards might provide better earning rates than the standard 1% to 2% on cash-back cards.
Another drawback of cash-back cards is that they frequently have fewer inherent advantages than specialty rewards cards. Cash-back cards frequently place more emphasis on rewards than on other features like statement credits for particular purchases or travel incentives.
How to Choose the Right Cash Back Card for You
Although there are several excellent cash-back cards available, the one that will benefit you the most depends on your spending patterns. Look at your budget and note where you spend the most often before committing to a card. then pick the card that most closely matches your way of life.
How to Use Your Cash Back Credit Card to Its Fullest Potential
Utilizing several cash-back cards might result in higher returns across a variety of bonus categories. For instance, you may obtain a card that rewards gas purchases with 3% cash back, a card that rewards grocery purchases with 4% cash back, and a card that rewards all other expenditures with 2% cash back. You can couple numerous cards to reward the significant spending you conduct across all categories, but the first two cards are likely to simply reward non-bonus category spending with 1% cash back.
Beware: Managing several credit card accounts entails additional accountability, which includes more minimum payments, monthly statements, fees, and interest accrual risk. Take care not to carry too much.
Cash-Back Credit Card Alternatives
Other credit card rewards can be more valuable to you depending on your preferred redemptions.
Travel rewards versus cash back
Strategically redeeming travel rewards, such as airline miles or hotel points, can result in significant savings. Every travel program contains sweet spots where, when wisely redeemed, a single point or mile could be worth five or ten cents each. This, however, presupposes that you are aware of the program's advantages and have the flexibility to capitalize on them.
On the other hand, cashback provides consistent value. You don't need to look for the most valued redemptions or worry about getting redemptions with below-average values. Redeeming awards is also easier and doesn't take a lot of time.
Cash Back vs. Flexibility in Bank Points
Numerous card issuers provide proprietary points as an alternative to conventional cash back. These schemes, such as Citi ThankYou points or Chase Ultimate Rewards, include flexibility. Credit card points can be redeemed for cash back (typically, but not always, equal to 1%) or other benefits through the program when you earn enough of them. Booking travel using the rewards portal is a popular method of redemption to maximize the value of each point by 25%. Additionally, you might be able to transfer your points to affiliated travel loyalty programs, effectively earning rewards for travel.
Once more, the simplest and clearest choice is cashback. Credit card points, however, typically include one or more other redemption choices that are still straightforward but offer a better return. The best quality of points is their adaptability.
Visit this page to examine the Blue Cash Preferred® Card from American Express's rates and fees.
Visit this page to examine the rates and costs for the American Express Blue Cash Everyday® Card.
The amount of eligibility and benefits vary by card. Conditions, Restrictions, and Terms Apply. For further information, please visit americanexpress.com/benefitsguide.
The amount of eligibility and benefits vary by card. Conditions, Restrictions, and Terms Apply. For further information, please visit americanexpress.com/benefitsguide. by AMEX Assurance Company, underwritten. The American Express Travel Related Services Company, Inc. provides coverage for car rental loss or damage.
Post a Comment for "Best Cash Back Credit Cards 2023 "