The best flat-rate cash back credit card is the Citi Double Cash Card because it is nearly twice as rewarding as the average cash rewards credit card, offering 2% cash back on every purchase (1% when you buy and 1% as you pay for those purchases). The Citi Double Cash Card comes with a $0 annual fee, too. It can even double as a balance transfer credit card, with its intro APR period of 0% for 18 months on balance transfers.
All these credit cards offer above-average cash back on every purchase, and none have spending categories that earn more or less rewards than others. Most of the cards require good credit or better for approval, but people with lower scores have options, too.
Yes, cash back credit cards are worth it if the value of the cash back is greater than the cost of the card. The best cash back credit cards with the highest rewards rates and signup bonuses sometimes have annual fees. In that case, you need to be sure that what you earn will offset the cost of the annual fee (and then some). For cards that have … read full answerno annual fees, the cash back is free money as long as you don’t get charged interest.
Many cash back credit cards let cardholders earn more than the cost of the annual fee. However, what you really want is a card that allows you to earn cash back as efficiently as possible. Some credit cards give a flat cash back rate for all purchases. There are also cash back cards that will reward you more for bonus categories, like gas, groceries, or dining. The highest flat cash back rate is 2.5%. For bonus categories, you can earn up to 6%. The best cash back credit cards usually require good credit or better for approval, but there are strong offers for people across the entire credit score spectrum.
Wherever you spend the most money on your credit card will determine whether a flat-rate cash back card is better for you, or a card that’ll earn you bonus cash back in specific categories. How many credit cards you want to have in total matters, too, as does your credit standing. The better your credit is, and the more income you have relative to your debt, the more credit card options you’ll have and the more worthwhile they’ll be.
If you’re looking for a new card, check out the best cash back credit cards and find the one that’s most worth it for you. But remember, as with any card, you need to be sure to use a cash back credit card responsibly for it to be worthwhile in the long run. No credit card, regardless of the cash back rate, is worth it if you overspend and find yourself in debt with a damaged credit score. You can also use WalletHub’s free CardAdvisor tool to find a card that best suits your needs.
Cash back vs. miles is a frequent debate among rewards credit card shoppers, but it’s like comparing apples and oranges. Both are fruit, or rewards that you earn on every purchase, in this case. And both have their virtues, though a lot depends on your personal tastes. For example, you always know how much cash back is worth, while miles tend to be more mysterious. Miles are also associated with travel, which is fun. But much like you can eat both an apple and an orange, there’s room in your wallet for a … read full answercash back credit card and a credit card with miles. The best approach is to use a cash back card with a high baseline earning rate for everyday purchases and a credit card with miles for travel expenses.
It’s still good to know how these two major rewards currencies compare, no matter how many credit cards you decide to get. So let’s take a look at some of their biggest similarities and differences.
Typical Redemption Method: Statement credit vs. Eligible travel expenses
Averages are from WalletHub’s 2021 Credit Card Landscape Report. And if you’re wondering, rewards devaluation is when a credit card company increases the number of points or miles needed for a certain amount of redemption value, which decreases the value any unredeemed points or miles you may have. That’s not a concern with cash back because a credit card company can’t change the value of a dollar.
Cash back is just a lot more straightforward than miles because it’s already in dollar terms. So you’ll always know exactly how much you’re earning on a particular purchase as well as how much your unredeemed rewards are worth. With credit card miles, you have to compare the number needed for a certain redemption item – a flight, for example – to how much that item would cost if purchased normally.
But cash back and miles credit cards have a lot in common, too. For example, you’ll find a similar mix of rewards programs among both types of cards. Some offer the same rewards earning rate on all purchases. Some give you more rewards in designated bonus categories, if only up to a certain amount spent. And others offer even higher bonus rates in categories that change every few months. You’ll also find initial bonuses on both types of cards but only on some offers in each group.
The best 2% cash back credit card is the Citi® Double Cash Card – 18 month BT offer. Citi Double Cash is the best 2% cash back credit card because it has a $0 annual fee and gives unlimited 1% cash back when buying something plus another 1% when paying for it, for a total of 2% cash back on all purchases.… read full answer
For a rewards credit card, 2% cash back on everything is about the best you can aim for. That’s why Citi Double Cash is one of the best credit cards on the market right now. But there are a few other great 2%+ cash back credit cards to consider when shopping for the best deal.
At the end of the day, Citi Double Cash is the best 2% cash back credit card because it offers an unlimited 2% cash back rate on all purchases. Most 2 percent cash back credit cards put a cap on the amount you can earn with a 2%+ rate. Or they only give the rate on certain categories of purchases.
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