We get it. Holding a credit card that earns credit card points, frequent flyer miles, or hotel points isn’t for everybody. And if you fall into that category, there is no better alternative than holding a cashback credit card.
There is no complicated math that requires you to figure out the best way to use or redeem the rewards. Rather, you’ll get money back as a statement credit based on the purchases you make. But with so many options in the marketplace that reward consumers who spend in different categories, it can be hard to know which is the best cashback credit card option for you.
Let’s take a look at the best cashback credit card options to help you pick one (or multiple) that are right for you. And as an added bonus, some of these cash back cards allow you to turn the cash back you earn into travel rewards points and miles.
Here is what you need to know.
- The Best Cashback Card for Groceries & Streaming Subscriptions
- The Best Flat Rate Cashback Credit Card
- The Best Cashback Card for Dining & Entertainment
- The Best Cashback Card for Costco Members & Gas Stations
- The Best Cashback Cards for Chase Sapphire Cardholders
- The Best Cash Back Card to Maximize Your Top Spending Categories
The Best Cashback Card for Groceries & Streaming Subscriptions
If you’re looking for a cashback credit card that has a solid return at the grocery store, look no further than the Blue Cash Preferred® Card from American Express.
The card earns a whopping 6% cash back at U.S. supermarkets on up to $6,000 in purchases each calendar year (1% thereafter). You’ll also earn an unlimited 6% back on select U.S. streaming subscriptions like Netflix, Spotify, Hulu, and many more. See the full list here.
On top of that, you’ll also earn 3% cash back at U.S. gas stations, and 3% cashback on transit like Uber, Lyft, taxis, parking, trains, buses, and more. All other purchases will earn 1% cash back.
The card is currently offering a welcome bonus of $350 after you spend $3,000 in the first six months of card membership.
The card has an annual fee of $95 (see rates & fees).
Click Here to learn more about the Blue Cash Preferred Card from American Express.
The Best Flat Rate Cashback Credit Card
If you’re not interested in using different cards to maximize each category you spend money in, the Citi® Double Cash Card is worth a hard look. That’s because the card earns 2% cash back on every single purchase you make. You’ll earn 1% cash back when you make the purchase, and an additional 1% cash back when you pay off those purchases.
And if you hold one of Citi’s top-tier travel credit cards like the Citi Premier® Card or the Citi Prestige cards, the cashback earned by the Double Cash Card can be transferred directly into your Citi ThankYou Rewards account.
For a limited time, the card is offering $200 cash back (or 20,000 Citi ThankYou points) after spending $1,500 in the first six months of card membership.
The card has no annual fee!
Click Here to learn more about the Citi Double Cash Card.
The Best Cashback Card for Dining & Entertainment
If you spend a decent amount on both dining and entertainment, you’ll want to take a look at the Capital One SavorOne Cash Rewards Credit Card. The card earns an unlimited 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart® and Target®). Plus, you’ll earn 1% back on all other purchases.
Additionally, you’ll earn 8% cash back on purchases made through Capital One Entertainment and at Vivid Seats. And if you hold the Capital One Venture Rewards Credit Card or the Capital One Venture X Rewards Credit Card, the cash back earned from the SavorOne card can be turned into Venture Miles at a rate of one cent equals one mile.
Best of all, the card doesn’t charge foreign transaction fees and doesn’t have an annual fee.
Click Here to learn more about the Capital One SavorOne Cash Rewards Credit Card.
The Best Cashback Card for Costco Members & Gas Stations
If you’re a Costco member and spend a lot at the gas pump, the Costco Anywhere Visa® Card by Citi might be a good option for your wallet.
That’s because the card earns 4% cash back per dollar sent on up to $7,000 each calendar year at gas stations (1% thereafter). You’ll also earn an unlimited 3% cash back at restaurants and on travel – making it a great cashback option for travelers.
It also earns 2% cash back on all purchases from Costco or Costco.com, and 1% back on all other purchases.
And while the card doesn’t technically have an annual fee, it requires that you hold a Costco membership. Costco offers two levels of membership: Gold Star which costs $60 each year, and Gold Star Executive, which costs $120 each year. Executive members earn 2% back on up to $50,000 of spending each year, which can be combined with the 2% cashback earned from the Costco cashback credit card (4% total).
Click Here to learn more about the Costco Anywhere Visa® Card by Citi.
The Best Cashback Cards for Chase Sapphire Cardholders
It’s no secret that we are big fans of Chase Ultimate Rewards points. They can be earned with either the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve® credit cards. In our opinion, these are some of the most valuable points out there for travelers.
And there are two no annual fee credit cards that can make both Sapphire cards exponentially more valuable. They are the Chase Freedom Flex℠ and the Chase Freedom Unlimited®. Both of these are technically cashback credit cards, but if you hold a card that earns Ultimate Rewards points, the cashback can be converted into Ultimate Rewards points at a rate of 1 cent per point.
And better yet, once you transfer the cashback into Ultimate Rewards points, they can be redeemed for either 1.25 cents or 1.5 cents each towards travel, depending on which version of the card you hold.
The Freedom Flex Card earns a $200 bonus after you spend $500 in the first three months of card membership. You’ll also earn 5% cash back on up to $1,500 in spending in rotating quarterly bonus categories.
Click Here to learn more about the Chase Freedom Flex Card.
The Freedom Unlimited card earns 1.5% cash back on every purchase you make. Plus, you’ll earn an additional 1.5% cash back (3% total) on up to $20,000 spent in your first year of card membership). In total, that welcome offer bonus is worth up to $300 back (or 30,000 Ultimate Rewards points) if you can maximize it.
Click Here to learn more about the Chase Freedom Unlimited®.
Both cards are subjected to Chase’s 5/24 rule, so this is something to be aware of before applying.
The Best Cash Back Card to Maximize Your Top Spending Categories
If your top spending categories change from month to month, the Citi Custom Cash℠ Card is worth a look.
You’ll earn 5% cash back on purchases made in your top eligible spending categories each billing cycle, up to the first $500 spent. You’ll earn 1% cash back thereafter, and an unlimited 1% cash back on all other purchases.
Like the Citi Double Cash Card, the cash back will be fulfilled as Citi ThankYou points, which can be redeemed towards travel.
The card also offers a welcome bonus of $200 cash back (20,000 Citi ThankYou points) after spending $750 in the first three months of card membership.
And the Citi Custom Cash Card doesn’t charge an annual fee.
Click Here to learn more about the Citi Custom Cash Card.
Earning travel rewards certainly isn’t for everybody. So if you value earning cash back over airline miles and hotel points, the cards on our list of the best cashback credit cards are worth a look.