Best Cash Back Credit Cards

The best cash back business credit card is the Capital One® Spark® Cash for Business because it offers unlimited 2% cash back on all purchases. Spark Cash for Business also has a $500 bonus for spending $4,500 in the first 3 months. There is no annual fee the first year ($95 after that), and applicants need good personal credit or better for approval.

Best Cash Back Business Credit Cards

• Capital One® Spark® Cash for Business – Best overall

• Ink Business Unlimited® Credit Card – Best initial bonus 

• Ink Business Cash® Credit Card – Best bonus categories 

• Capital One® Spark® Cash Select for Business – Best for new businesses 

• Capital One® Spark® Classic for Business – Best for limited credit 

It's also worth mentioning that you shouldn't forget about cash back credit cards meant for personal use. There are some really great deals right now, especially if you don't plan to spend enough to qualify for a business card's initial bonus.

The best cash back credit card for excellent credit is the Blue Cash Preferred® Card from American Express because it offers a $150 statement credit as an initial bonus for spending $3,000 in the first 6 months. You also get 6% cash back at U.S. supermarkets (up to $6,000 spent per year), 6% cash back on U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit and 1% back on everything else (provided via statement credits).

The very best card for you will depend on the types of purchases that you plan to charge to your credit card, along with which secondary features you value most. Some cash back credit cards offer rewards at a flat rate on all purchases, while others give more cash back in certain spending categories. Some also offer initial rewards bonuses, while others have low intro APRs.

Best Cash Back Credit Cards for Excellent Credit

• Best for U.S. Supermarkets: Blue Cash Preferred® Card from American Express
• Best for No Annual Fee: Chase Freedom Unlimited®
• Best for Double Cash Back: Citi® Double Cash Card – 18 month BT offer
• Best for Flat Rate: Alliant Cashback Visa® Signature Credit Card
• Best for Dining and Entertainment: Capital One® Savor® Cash Rewards Credit Card
• Best for 0% Intro APRs: Wells Fargo Cash Wise Visa® card
• Best for Flat Rewards with No Annual Fee: American Express Cash Magnet® Card
• Best for an Easy Bonus: Capital One Quicksilver Cash Rewards Credit Card

The best cash back credit cards for excellent credit are the market's best overall cash rewards cards. People with excellent credit scores of 750 or higher have the luxury of picking the best offer for their needs from not only the pool of cards that require a minimum of good credit for approval but also those reserved for the highest creditworthiness tier. The better an applicant's credit score is and the less debt they already owe, the higher their odds of approval will be for one of the top cash back credit cards for excellent credit.

Finally, when using one of these cards, it's best not to carry a balance between months (unless you have a 0% APR). If you carry a balance, your rewards will be diminished by interest.

The best gas cash back credit card is the Bank of America® Customized Cash Rewards credit card because it offers 3% cash back in a category of your choice (including gas stations), 2% at grocery stores and wholesale clubs (on up to $2,500 spent quarterly across bonus categories), and 1% on all other purchases. There's also a $200 initial bonus for spending $1,000 in the first 90 days. The Bank of America® Customized Cash Rewards credit card has a $0 annual fee, too.

Best Gas Cash Back Credit Cards

• Best for Excellent Credit: Bank of America® Customized Cash Rewards credit card
• Best for Good Credit: Blue Cash Preferred® Card from American Express
• Best for No Annual Fee: USAA® Cashback Rewards Plus American Express® Card
• Best for High Spenders: PenFed Platinum Rewards Visa Signature® Card
• Best for Newcomers: Petal® 2 Visa® Credit Card
• Best for Bad Credit: Bank of America® Customized Cash Rewards Secured Credit Card

You need good/excellent credit to get most cash back gas credit cards, but there are a few options for people with fair, limited or bad credit. For example, the Bank of America® Customized Cash Rewards Secured Credit Card card gives 3% in a category of your choice, including gas.  

The best cash back credit card for groceries is the Blue Cash Preferred® Card from American Express because it offers 6% cash back at U.S. grocery stores on up to $6,000 spent annually, along with 1 - 6% cash back on other purchases. Plus, cardholders can earn an initial bonus of $150 statement credit for spending $3,000 in the first 6 months.

Best Cash Back Credit Cards for Groceries

• Best Overall: Blue Cash Preferred® Card from American Express
• Best for No Annual Fee: Capital One SavorOne Cash Rewards Credit Card
• Best for Excellent Credit: Bank of America® Customized Cash Rewards credit card
• Best for Good Credit: Blue Cash Everyday® Card from American Express
• Best for Walmart Purchases: Capital One Walmart Rewards® Mastercard®
• Best for Students: Bank of America® Customized Cash Rewards Credit Card for Students

Another good cash back credit card for groceries is the Capital One SavorOne Cash Rewards Credit Card, which is an alternative for people who spend a lot at supermarkets, but don't want to pay an annual fee. Along with a $0 annual fee, you'll get 3% cash back at grocery stores.

The best credit card for gas and groceries is the Blue Cash Preferred® Card from American Express. It gives 20% cash back on Amazon.com purchases for the first 6 months (up to $200 back), 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. New cardholders can also earn a $150 statement credit for spending $3,000 in the first 6 months of card membership.

There are plenty of other options to choose from, as well. You can see the complete list of the best credit cards for gas and groceries below.

Best Credit Cards for Gas and Groceries

• Blue Cash Preferred® Card from American Express: Best overall for gas and groceries
• Costco Anywhere Visa® Card by Citi: Best for Costco members
• Amazon.com Credit Card: Best for Whole Foods Market purchases
• PenFed Platinum Rewards Visa Signature® Card: Best for gas
• SunTrust Cash Rewards Credit Card: Best for excellent credit
• Capital One QuicksilverOne Cash Rewards Credit Card: Best for fair credit
• SunTrust Secured Credit Card: Best for bad credit

Ultimately, the best credit card for gas and groceries is the Blue Cash Preferred. But since gas and groceries are some of the most common expenses, it's a popular combination and there are options for every credit level.

The best cash back credit card with no annual fee is Chase Freedom Unlimited®. In addition to a $0 annual fee, Chase Freedom Unlimited offers an initial bonus of $200 for spending $500 in the first 3 months as well as 1.5 - 5% cash back on purchases. More specifically, cardholders earn 5% cash back on travel through Chase, 3% cash back at restaurants and drugstores, and 1.5% back on all other purchases.

Best Credit Cards with No Annual Fee and Cash Back

• Best for Travel: Chase Freedom Unlimited®
• Best for Flat Rate Rewards: Citi® Double Cash Card – 18 month BT offer
• Best for Dining: Capital One SavorOne Cash Rewards Credit Card
• Best for Fair Credit: Upgrade Visa® Card with Cash Rewards
• Best for No Credit: Petal® 2 Visa® Credit Card
• Best for Bad Credit: Bank of America® Customized Cash Rewards Secured Credit Card
• Best for Students: Bank of America® Customized Cash Rewards Credit Card for Students
• Best for Business: Ink Business Cash® Credit Card

Cash back gives flexibility and freedom when it comes to earning and using rewards. You'll get a percentage back on every purchase, and you can spend your rewards however you like. Below, you can get an even better sense of how much the top cash back credit cards with no annual fee could save you.

Best Cash Back Credit Cards with No Annual Fee Compared

Cash back credit cards work by returning a percentage of every purchase made. Some cash back credit cards reward cardholders with the same percentage back on every type of purchase. Others give bonus cash back in designated spending categories. Most cash back credit cards give cardholders the choice of redeeming cash back rewards earnings for a statement credit to pay part of the account balance, a paper check, gift cards and more. In some cases, you can also redeem a credit card's cash back rewards for a bank account deposit.

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.

More generally, cash back is one of the three big types of credit card rewards. The others are points and miles, which you'll see more often with travel cards. On that note, a credit card doesn't have to be a “cash back credit card” to give cash back. Plenty of rewards credit cards, including some that offer miles and points, have cash back as a redemption option. Redeeming travel rewards for cash back often results in a lower redemption rate, however. True cash back rewards earned with a cash back credit card, on the other hand, are very versatile and don't fluctuate in value. You can learn more below.

Here's how cash back credit cards work:

• Cash back with every purchase: The average cash rewards card offers about 1% back on all purchases. Some cards offer more cash back in certain spending categories.
• Chances for extra cash back: Many cash back credit cards offer initial rewards bonuses for spending a certain amount within the first few months your account is open. Some cards also have bonuses for referring a friend or meeting an annual spending threshold.
• Redeeming your cash: Cash rewards can usually be redeemed for a statement credit, check or direct deposit. You may also be able to redeem for a bank account deposit and set up automatic redemption.
• Restrictions: Some credit card companies make you earn a minimum amount of cash back before you can redeem.
• Cash back expiration: Sometimes, credit card cash back will expire a certain number of months after you earn it or after your card has been inactive for a certain period of time. Usually, it won't expire as long as your card stays open.
• Rewards devaluation: Unlike points and miles, whose value is set by the card issuer, cash back can't be devalued.
• Fees. Most cash back credit cards have no annual fee. Many have no foreign transaction fee. Some charge both types of fees, however.

Some of the best cash back cards on the market include Citi Double Cash, Capital One Quicksilver, Wells Fargo Cash Wise and Amex Blue Cash Preferred.

For limited or fair credit, try Capital One QuicksilverOne. And for bad credit, a good choice is Discover it Secured Credit Card. There are plenty of options for students and small business owners, too.

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 the cash back that you earn will offset the cost of the annual fee (and then some). For cash back cards that have no 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 cash back 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 cash back 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% cash back.

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. If you're looking for a new cash back 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. 

Choosing between cash back rewards and travel rewards ultimately comes down to your spending preferences, the perks that specific cards offer, and how you plan to redeem rewards earnings. In general, people looking for flexible redemption options and rewards with clear values that can't be changed by the card's issuer should choose cash back rewards. But frequent travelers who enjoy perks such as free flights, airport lounge access, and hotel room upgrades have the chance to earn more total value from travel rewards.

With travel rewards credit cards, the number of points or miles you'll need to redeem for a free flight or hotel night, for instance, varies from issuer to issuer and card to card. Points/miles can also lose their value any time the card's issuer decides to raise the number needed to get a certain dollar amount in redemption value. Cash back rewards, on the other hand, are easy to understand and will retain their value because they're already expressed in terms of dollars and cents.

All told, cash back rewards are the better way to go for most people. However, there are a number of variables to consider on both sides. Not everyone always needs to choose between cash back and travel rewards, either. Having both a cash back credit card and a travel rewards card in your wallet can make sense in some situations.

Cash Back vs. Travel Rewards Credit Cards

When choosing between cash back and travel rewards, it's important to be realistic in how you're going to use the card. And whichever type of rewards you pick, make sure to pay your bill in full each month, or else you could end up spending more in fees and interest than the rewards are worth.

Bottom Line: Cash Back vs. Travel Rewards

• You should get a cash back credit card if you want to earn everyday rewards and enjoy straightforward, flexible redemption options.
• You should get a travel rewards credit card if you travel multiple times per year and are confident you'll earn enough in rewards to cover the cost of the annual fee – without overspending.
• You should have both if you can manage more than one account responsibly and want the best collection of earning rates for your biggest spending categories. Just make sure you pay your balances in full each month.

As long as you use your credit cards responsibly, you have the potential to reap lucrative rewards on your everyday purchases. Just be sure to actually put those rewards to use. Rewards that go unredeemed defeat the purpose getting the card in the first place.

There are 3 types of cash back credit cards: flat-rate cash back cards, cash back credit cards with tiered rewards, and cash back credit cards with bonus categories that change.

Each type is good for different styles of spending. With a bit of organization, the right combination of these types of cash back cards could also help you maximize your rewards-earning potential.

3 Types of Cash Back Credit Cards:

1. Flat-rate cash back credit cards give cash back rewards at a single rate for all purchases. The best flat-rate cash back cards offer at least 1.5% cash back on all purchases, plus a signup bonus, with no annual fee.
2. Tiered cash back credit cards give cash back rewards at different rates depending on the amount spent over a given interval, or based on whether a purchase qualifies for a set group of bonus categories that does not change. For instance, a tiered cash back credit card might offer 2% cash back on all purchases, up to $10,000 spent in a year, and then give 1% cash back on all other purchases for the rest of the year. Or, another type of tiered cash back credit card might offer 4% back on grocery store spending, 3% back for restaurant purchases, and 1% back on everything else.
3. Bonus category cash back credit cards give higher cash back earning rates on specific types of purchases, which may include purchases from certain retailers or purchases that fit a certain theme. The types of purchases that qualify for bonus cash back usually change once per quarter. For example, cardholders might earn 5% cash back on bonus-category purchases, up to a quarterly spending limit, and 1% back on all other purchases. Bear in mind that some credit cards using bonus categories for cash back will require cardholders to activate the new categories every quarter, which can be a hassle.

Knowing which type of cash back credit card is right for you is a matter of how you spend your money, so it's good to consider how likely you are to organize your spending around categories. If you'd rather not worry about spending categories or using different cards for different types of purchases, a flat-rate cash back card is what you want. On the other hand, if you don't mind activating spending categories each quarter, you could benefit from a bonus category cash back credit card.

If you can handle more than one credit card, however, your options grow. You could use one tiered card for groceries only, for example, a bonus category card for different rewards-rich opportunities, and a flat-rate cash back card for everything else. A mixture of cash back credit card types can get you to another level of rewards, but only if you're able to use several credit cards responsibly.