The best cash bonus credit card offer is the Blue Cash Preferred® Card from American Express. New cardholders can now earn a $350 statement credit for spending $3,000 in the first 6 months. Blue Cash Preferred also comes with extensive ongoing rewards: 1 - 6% cash back.
There are many cash bonus credit cards that offer you money for meeting a spending requirement in the first few months. These cards are a good way to get a hefty rebate on your purchases at the start, especially if they also have no annual fee. But it’s important to remember that initial bonuses are just that – initial. You’ll want to choose a card that provides great everyday perks even after you earn the bonus.
Here are some of the best cash bonus credit cards:
$350 statement credit for spending $3,000 in the first 6 months
6% cash back at U.S. supermarkets (up to $6,000 spent per year), 6% back on select U.S. streaming subscriptions, 3% back at U.S. gas stations and on transit, and 1% back on all other purchases, earned as statement credits
5% cash back on hotels and rental cars booked through Capital One Travel, 4% cash back on dining, entertainment and popular streaming services, 3% back at grocery stores and 1% back on all other purchases (except for 8% back on tickets from Vivid Seats and on Capital One Entertainment purchases)
5% cash back on the first $25,000 spent per year in combined purchases at office supply stores and on internet, cable and phone services; 2% cash back on the first $25,000 spent per year at gas stations and restaurants combined; and 1% back on all other purchases
Ultimately, the best cash back credit card is the one that fits your individual needs – if your spending is more even-keeled and you don’t want to worry about categories, a flat-rate cash back credit card will be the better option. Otherwise, pick the one that rewards you most in your largest spending categories.
Yes, cash back credit cards are worth it if you pay off your balance each month. It is also worth noting that 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.
Here’s what you should know before getting a cash back credit card:
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. The highest flat cash back rate is 2.5%.
There are also cash back cards that will reward you more for bonus categories, like gas, groceries, or dining. 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. Your credit score and debt-to-income ratio play an important part on the credit card offers you’ll be able to get. The better your credit standing is,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 suitable for you. However, make 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.
The short answer is yes, you may want to have more than one rewards card, especially if you get an airline miles credit card. Most airline credit cards are best when used solely for airline spending. And that leaves plenty of other purchases in need of a good earning rate. So it’s wise to fill the void with a … read full answercash back credit card or a travel rewards card that is equally rewarding on all purchases.
Of course, this all depends on whether you pay your credit card bills in full every month. If you do, getting different rewards cards for each of your biggest expense categories is a great idea. But if you don’t plan to pay in full, you’ll save more by using a 0% or low-interest credit card for purchases that will lead to an end-of-month balance.
The practice of using multiple cards to serve a collection of specific purposes is called the Island Approach. And trying it makes more and more sense the better your credit is. People with good or excellent credit have far more options and far fewer fees, after all.
Cash back on credit cards rewards cardholders for making purchases by returning a percentage of the money spent. The accumulated cash back rewards can then be used in a variety of ways, such as paying your credit card bill, getting a check, or making a direct deposit to a bank account.… read full answer
Exactly how cash back rewards work varies by credit card company and even by individual card. But there are some aspects of the process that are pretty much the same no matter what, and it’s a good idea to understand how things work at a high level.
Here’s an overview of how cash back works on credit cards:
Earn a percentage of the amount paid every time you make a qualifying purchase with your cash back credit card.
Wait for the cash back rewards to post to your account. This usually takes 1-2 billing cycles.
Use the accumulated cash back for a statement credit, check or direct deposit. Some cash back credit cards also allow you to redeem cash back toward travel expenses, gift cards, and charitable donations, among other options.
As you can see, it’s pretty simple to earn and use the cash back on your credit card. You can find a more detailed explanation for each part of the process below.
How Earning Cash Back Works
Every time you use a cash back credit card to make a qualifying purchase, you earn a percentage of the amount paid. To maximize your cash back rewards, make sure to evaluate your spending habits and choose a card that suits you.
Ongoing rewards: The average cash rewards card offers around 1% back on all purchases. Keep in mind that some cash back credit cards offer cardholders a flat percentage back on all purchases, while others offer higher cash back percentages for popular spending categories, like dining or travel. It is also worth noting that certain cards offer a higher earning rate on bonus categories that change every quarter and require activation.
Initial bonus: Many cash back credit cards offer initial rewards bonuses for spending a certain amount within the first few months after opening an account.
Other ways to earn extra cash back: Some cards offer cash back bonuses for referring a friend or meeting an annual spending threshold.
How Redeeming Cash Back Works
You can redeem cash back rewards by logging in to your credit card issuer’s website and clicking the “Redeem Rewards” link (which will be worded slightly differently for each issuer). In some cases, you can also redeem cash back through the card issuer’s mobile app or by calling the number on the back of your card.
Redemption options: Cash rewards can usually be redeemed for a statement credit, check or direct deposit. You may also be able to redeem for travel expenses, merchandise, gift cards and charity. Some cards may allow you to set up automatic redemption, too.
Restrictions: Some credit card companies require you to earn a minimum amount of cash back before you can redeem.
Cash back expiration: Usually, cash back rewards won’t expire as long as your account is open and in good standing. Sometimes, however, cash back will expire after a specific period of time. This happens either because your card has been inactive or because a certain period of time has passed since you earned the rewards.
Rewards devaluation: Unlike points and miles, which have a value set by the card issuer, cash back can’t be devalued.
It is worth noting that the best cash back credit cards require good or excellent credit for approval, though there are options for people of all credit levels. Similarly, some cards charge annual fees in return for higher earning rates, but many cash rewards cards have no annual fee.
For more options, check out our editors’ complete picks for the best cash back cards on the market right now.
Cash Back vs. Miles & Points
It is worth noting that cash back is not the only type of rewards that credit cards offer. The others are points and miles, which you’ll see more often with travel cards. While points and miles have different values depending on how they are redeemed, cash back rewards generally have a fixed cash value.
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