How do I choose the best cash back credit card for me?

Yes, cash back rewards cards are worth it because they can help you save money 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 best credit cards for at least 3% cash back in major spending categories are:

All of these credit cards give 3% cash back, or more, on some types of purchases. There is no credit card currently on the market that gives 3% cash back on all purchases. The best flat-rate cash back credit cards typically give ... read full answer2% cash back on all purchases.

Overall, the best credit card that gives at least 3% cash back in major spending categories is Chase Freedom Unlimited®. It offers 5% cash back on travel through Chase, 3% back at restaurants and drugstores, and 1.5% back on all other purchases (plus an additional 1.5% cash back on everything, up to $20,000 spent the first year). Chase Freedom Unlimited also has a $0 annual fee.

Yes, 1.5% cash back is good when it comes to a credit card’s rewards rate. A 1.5% cash back rate is higher than the average cash back rewards rate among credit cards. So, it should be the starting point for anyone in the market for a flat-rate cash back card.

Notable 1.5% Flat-Rate Cash Back Credit Cards in 2023

These cards give at least 1.5% cash back on purchases, along with $0 annual fees, initial bonus offers, or 0% APR promotions. Whichever card you choose, be sure to pay the balance in full each month. Otherwise, you’ll risk interest charges wiping out your hard-earned cash back rewards.

Ultimately, you might want to check out our editors’ latest picks for the best cash back credit cards on the market to weigh your options.