Cash-back credit cards offer consumers a way to earn rewards on everyday purchases by returning a percentage of the money spent. With a variety of cards available, each featuring different rewards structures and benefits, choosing the right one can enhance your financial strategy. This guide provides an overview of several cash-back credit cards available in the U.S., outlining their features and benefits to help you select a card that aligns with your spending habits and financial objectives.

Understanding Cash-Back Credit Cards

Before exploring specific cards, it’s important to understand how cash-back credit cards function. These cards reward you by returning a portion of your spending, which can come in various forms such as statement credits, checks, direct deposits, or points redeemable for merchandise or travel.

Key Factors to Consider:

• Spending Habits: Identify your primary expenses—groceries, dining, travel, or specific retailers.
• Reward Structure: Some cards offer flat-rate rewards, while others have tiered or rotating categories.
• Introductory Offers: Many cards provide sign-up bonuses or 0% APR introductory periods.
• Annual Fees: Consider the cost of any annual fee against the potential rewards.
• Additional Perks: Look for extra benefits like purchase protection, travel insurance, or exclusive access to events.

Top Cash-Back Credit Cards

1. Wells Fargo Active Cash® Credit Card

Highlights: Simplicity with flat-rate rewards.

• Earn Cash Back: Unlimited 2% cash back on all purchases.
• Welcome Bonus: $200 cash rewards bonus after spending $500 in the first 3 months.
• Intro APR: 0% for 12 months on purchases and qualifying balance transfers; then 19.74% to 29.74% variable APR.
• Additional Perks:
  • Cell Phone Protection: Up to $600 protection against damage or theft.
  • Travel Benefits: Includes rental car insurance and emergency services.

The Wells Fargo Active Cash® Credit Card is designed for individuals seeking a simple yet rewarding cash-back experience. Offering an unlimited 2% cash back on all purchases, this card eliminates the need to track spending categories or activate quarterly bonuses. It’s a straightforward solution for maximizing rewards on every dollar spent.

Unlimited 2% Cash Back:

• No Categories or Caps: Earn a flat 2% cash back on every purchase, whether you’re buying groceries, dining out, or booking travel.
• Easy Redemption: Cash rewards can be redeemed as a statement credit, direct deposit into a Wells Fargo account, or at ATMs (in $20 increments) using a Wells Fargo debit or ATM card.

Welcome Bonus:

• $200 Cash Rewards Bonus: Jumpstart your rewards by earning a $200 bonus after spending $500 within the first three months of account opening.

Additional Considerations:

• Credit Requirement: Applicants typically need good to excellent credit to qualify.
• APR Awareness: After the introductory period, the variable APR can be relatively high, so it’s advantageous to pay off balances monthly.

2. Chase Freedom Unlimited® Credit Card

Highlights: Versatile rewards on common spending categories.

• Earn Cash Back:
  • 5% on travel purchased through Chase Ultimate Rewards®.
  • 3% on dining (including takeout) and drugstore purchases.
  • 1.5% on all other purchases.
• Intro APR: 0% for 15 months on purchases and balance transfers; then 20.49% to 29.24% variable APR.

The Chase Freedom Unlimited® Credit Card offers a robust rewards program tailored to consumers who value flexibility and enhanced earnings on everyday spending categories. With elevated cash-back rates on travel, dining, and drugstore purchases, along with a competitive flat rate on all other spending, this card is designed to maximize rewards without complicated structures.

Welcome Bonus:

• Chase is currently offering $150 Bonus for new customers after spending $500 within the first 3 months.

Additional Benefits:

• Chase Ultimate Rewards®:
  • Points Redemption: While marketed as a cash-back card, rewards are earned as points within the Chase Ultimate Rewards® program, offering flexibility to redeem for cash back, travel, gift cards, or products.
  • Combine Points: If you have other Chase cards like the Chase Sapphire Preferred® or Reserve®, you can combine points for potentially greater value, especially when redeeming for travel.

Additional Considerations:

• Credit Score Requirement: Generally requires good to excellent credit for approval.
• Foreign Use: While the card offers robust domestic rewards, the 3% foreign transaction fee makes it less ideal for international travel.

3. Blue Cash Preferred® Card from American Express

Highlights: High rewards for groceries and streaming services.

• Earn Cash Back:
  • 6% at U.S. supermarkets (up to $6,000 per year), then 1%.
  • 6% on select U.S. streaming services.
  • 3% on U.S. transit and gas stations.
  • 1% on other purchases.
• Intro APR: 0% for 12 months on purchases; then 18.74%–29.74% variable APR.
• Annual Fee: $0 introductory annual fee for the first year, then $95.

The Blue Cash Preferred® Card from American Express is tailored for individuals and families who spend heavily on groceries, streaming services, gas, and transit. With some of the highest cash-back rates available in these categories, this card is designed to maximize rewards for everyday essential spending.

Additional Considerations:

• Credit Score Requirement: Good to excellent credit is typically required for approval.
• Annual Fee vs. Rewards: To justify the $95 annual fee after the first year, consider whether your spending habits will earn enough cash back to offset the fee.
  • Breakeven Point: Spending approximately $1,584 annually (or about $132 per month) in the 6% grocery category covers the annual fee with earned cash back.

4. Chase Freedom Flex® Credit Card

Highlights: Rotating categories with opportunities for higher cash back.

• Earn Cash Back:
  • 5% on quarterly rotating categories (up to $1,500 in combined purchases each quarter).
  • 5% on travel purchased through Chase Ultimate Rewards®.
  • 3% on dining and drugstores.
  • 1% on other purchases.
• Intro APR: 0% for 15 months on purchases and balance transfers; then 20.49%–29.24% variable APR.
• Annual Fee: $0
• Welcome Bonus: $150 after spending $500 in the first 3 months.

The Chase Freedom Flex® Credit Card is designed for consumers who want to maximize their cash-back earnings through rotating bonus categories and elevated rewards on everyday spending. Combining the benefits of rotating categories with fixed bonus categories, this card offers flexibility and substantial earning potential for those who plan their spending accordingly.

Welcome Bonus:

• $150 Bonus: Earn a $150 bonus after spending $500 on purchases in the first 3 months from account opening.
• Easy to Achieve: The low spending requirement makes the bonus accessible to many cardholders.

Fees:

• Annual Fee: $0, making it cost-effective to maintain the card.
• Foreign Transaction Fee: 3% of each transaction in U.S. dollars, which may affect international travelers.
• Balance Transfer Fee: As outlined in the Intro APR section.
• Cash Advance Fee: Either $10 or 5% of the amount of each transaction, whichever is greater.

Additional Considerations:

• Credit Score Requirement: Good to excellent credit is typically needed for approval.
• Foreign Use: The 3% foreign transaction fee makes this card less suitable for international travel.
• Maximizing Rewards:
  • Planning Ahead: Knowing the upcoming quarterly categories allows you to plan significant purchases accordingly.
  • Pairing with Other Cards: Some users pair this card with others, like the Chase Freedom Unlimited®, to optimize cash-back earnings across different spending categories.

5. U.S. Bank Cash+® Visa Signature® Card

Highlights: Customizable rewards categories.

• Earn Cash Back:
  • 5% on two categories of your choice (up to $2,000 combined quarterly).
  • 2% on one everyday category (gas, groceries, or restaurants).
  • 1% on all other purchases.
• Intro APR: 0% for 15 months on purchases and balance transfers; then 18.99%–29.24% variable APR.
• Annual Fee: $0
• Welcome Bonus: $200 after spending $1,000 in the first 90 days.

The U.S. Bank Cash+® Visa Signature® Card stands out for its high degree of customization, allowing cardholders to choose the categories where they earn the most cash back. This flexibility makes it an attractive option for individuals who want to tailor their rewards to match their unique spending habits.

Cash Back Redemption:

• Flexible Redemption Options:
  • Statement Credits: Apply your cash back to your credit card balance.
  • Direct Deposit: Transfer rewards into a U.S. Bank checking, savings, or money market account.
  • U.S. Bank Rewards Card: Redeem for a U.S. Bank-issued rewards card, similar to a prepaid card.
• Redemption Threshold: Minimum redemption amounts may apply, typically starting at $25.

Introductory APR Offer:

• 0% Intro APR: Benefit from a 0% introductory APR on purchases and balance transfers for the first 15 billing cycles.
• Variable APR After Intro Period: Post-introductory APR ranges from 18.99% to 29.24%, based on creditworthiness.

Welcome Bonus:

• $200 Cash Back: Earn a $200 bonus after spending $1,000 in eligible purchases within the first 90 days of account opening.

6. Synchrony Premier World Mastercard®

Highlights: Simple, unlimited cash back with no foreign transaction fees.

• Earn Cash Back: 2% unlimited cash back on every purchase.
• Annual Fee: $0
• APR: 19.24% – 34.99%
• Additional Perks:
  • Mastercard ID Theft Protection™
  • Mastercard Travel & Lifestyle Services
  • Priceless® Experiences
• Foreign Transaction Fees: None

The Synchrony Premier World Mastercard® is geared towards individuals seeking a straightforward cash-back credit card without the complexities of rotating categories, spending caps, or annual fees. Offering unlimited 2% cash back on every purchase and no foreign transaction fees, this card is ideal for everyday use and international travel.

Earning Cash Back:

• 2% Unlimited Cash Back:
  • Flat-Rate Rewards: Earn 2% cash back on all purchases, regardless of category or merchant.
  • No Caps or Restrictions: There are no limits to the amount of cash back you can earn, making it suitable for both small and large expenditures.

No Foreign Transaction Fees:

• International Use:
  • Fee-Free Transactions Abroad: Make purchases outside the United States without incurring foreign transaction fees, which are typically around 3% on other cards.
  • Ideal for Travelers: This feature makes the card a cost-effective option for international travel and online purchases from foreign merchants.

7. Bank of America® Customized Cash Rewards Credit Card

Highlights: Flexibility in choosing your cash-back category.

• Earn Cash Back:
  • 3% on a category of your choice (gas, online shopping, dining, travel, drugstores, or home improvement/furnishings).
  • 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery/wholesale club purchases quarterly).
  • 1% on all other purchases.
• Annual Fee: $0
• APR: 19.24% – 29.24%
• Welcome Bonus: $200 after spending $1,000 in the first 90 days.

The Bank of America® Customized Cash Rewards Credit Card offers a personalized approach to earning cash back, allowing cardholders to choose the category where they earn the highest rewards. This flexibility makes it a versatile option for individuals whose spending habits may change over time.

Welcome Bonus:

• $200 Online Cash Rewards Bonus:
  • Earning the Bonus: Receive a $200 cash rewards bonus after making at least $1,000 in purchases within the first 90 days of account opening.

8. Amazon Prime Visa Card

Highlights: High rewards for Amazon and Whole Foods shoppers.

• Earn Cash Back:
  • 5% back at Amazon.com, Amazon Fresh, Whole Foods Market, and Chase Travel.
  • 2% back at restaurants, gas stations, and on local transit.
  • 1% back on all other purchases.
• Annual Fee: $0 (requires an Amazon Prime membership)
• APR: 19.74% – 29.74%
• Welcome Bonus: $100 Amazon Gift Card upon approval.
• Foreign Transaction Fees: None

The Amazon Prime Visa Card is an excellent choice for Amazon Prime members who regularly shop on Amazon.com, Amazon Fresh, and at Whole Foods Market. With substantial rewards in these categories, no foreign transaction fees, and a variety of additional benefits, the card enhances the value of a Prime membership. However, those who do not frequently shop with Amazon or prefer broader rewards categories may find more value in other cash-back credit cards. As always, it’s important to consider your spending habits and financial needs when selecting a credit card.

Making the Right Choice

Selecting the appropriate cash-back credit card depends on aligning the card’s rewards structure with your spending habits. Consider the following steps:

1. Analyze Your Spending: Review recent expenses to identify primary spending areas.
2. Calculate Potential Rewards: Estimate cash back earnings based on your spending.
3. Consider the Annual Fee: Ensure rewards outweigh any annual fee.
4. Assess Additional Benefits: Look at perks like purchase protection or travel insurance.
5. Read the Fine Print: Understand any limitations, such as caps on rewards or rotating categories.

How do cash-back credit cards work?

When you make a purchase with a cash-back credit card, the issuer rewards you with a percentage of the purchase amount. For example, if your card offers 2% cash back and you spend $100, you earn $2 in cash rewards. These rewards accumulate over time and can be redeemed according to the card’s terms and conditions.

Do cash-back rewards expire?

It depends on the card issuer. With the Chase Freedom Unlimited® Credit Card, for instance, cash-back rewards do not expire as long as your account remains open and in good standing. Always check the terms and conditions of your specific card.

What is the difference between flat-rate and tiered cash-back rewards?

Flat-Rate Rewards: Offer the same cash-back percentage on all purchases. For example, the Synchrony Premier World Mastercard® provides 2% unlimited cash back on every purchase.

Tiered Rewards: Provide higher cash-back percentages on specific categories. The Bank of America® Customized Cash Rewards Credit Card offers 3% cash back on a category of your choice and 2% at grocery stores and wholesale clubs.

How do rotating categories work on cash-back cards?

Rotating category cards offer higher cash-back percentages on specific categories that change each quarter. Cardholders usually need to activate these categories and are subject to earning caps. For example, the Chase Freedom Flex® Credit Card offers 5% cash back on quarterly rotating categories, up to $1,500 in combined purchases each quarter.

Conclusion

Cash-back credit cards provide an opportunity to earn rewards on everyday spending. Whether you prefer a flat-rate card like the Wells Fargo Active Cash® or a customizable option like the U.S. Bank Cash+® Visa Signature® Card, aligning the card’s features with your financial needs is key. By evaluating your spending habits and each card’s benefits, you can select a card that enhances your financial strategy.

Note: Always use credit responsibly. Paying your balance in full each month helps avoid interest charges that can diminish your cash-back rewards.