Rewards Credit Cards

The best 2% cash back credit card is Citi Double Cash. It gives unlimited 2% cash back on purchases, 1% when you buy something and another 1% when you pay for it. And there’s no annual fee. Plus, the card offers a 0% APR for 18 months on balance transfers with a 3% fee. You will need good credit to be approved for this card.

But there are several other great 2 percent cash back credit cards to consider when shopping for the best deal.

Here are the best 2% cash back credit cards:

• 2% cash back on all purchases: Citi Double Cash.
• 2% cash back at grocery stores and wholesale clubs: BankAmericard Cash Rewards for Students.
• 2% cash back at Costco: Costco Anywhere Visa.
• 2% cash back at gas stations and select department stores: Amex Blue Cash Everyday.
• 2% cash back on $1,000 in restaurant and gas station purchases per quarter: Discover it Chrome.

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% cash back credit cards put a cap on the amount you can earn with 2%+ rates. Or they only give the rate on certain categories of purchases.

Many of these 2% cash back credit cards offer some other great features in addition to their 2% cash back rates. For example, Citi Double Cash gives a 0% APR on purchases and balance transfers for 18 months. BankAmericard Cash Rewards for Students offers 3% cash back on gas – but its 2% and 3% cash back rates only apply to your first $2,500 spent in those categories combined.
Similarly, the Costco Anywhere Visa gives 4% cash back on your first $7,000 spent per year on gas, and 3% back on restaurants and travel. Blue Cash Everyday offers 3% cash back on your first $3,000 spent at supermarkets, along with a 0% APR for 15 months on purchases and balance transfers. Discover it Chrome matches your first year’s cash back and gives you a 0% APR on purchases and balance transfers for 14 months.
And to top it off, none of these cards have annual fees.

The best 5% cash back credit card is Discover it – Cashback Match, but there are several other notable choices including Chase Freedom and some store credit cards. Discover it and Chase Freedom both offer 5% cash back in specified bonus categories, which change every three months, plus 1% on everything else. Store cards can only be used at the retailers they’re tied to, but if you shop there often, why not get 5% cash back? Let’s take a closer look at your choices.

Here are the best 5% cash back credit cards:

• Discover it – Cashback Match: 5% cash back on the first $1,500 spent in the quarter’s purchase categories, 1% on everything else. No annual fee. First year’s cash back matched at the end of the year. Requires good credit.
  
• Chase Freedom: 5% cash back on the first $1,500 spent in the quarter’s purchase categories, 1% on everything else. $150 initial bonus after spending $500 in the first 3 months. Requires excellent credit.
  
• Amex Cashback Rewards Plus: 5% cash back on $5,000 in gas and military purchases each year, 2% on the first $3,000 at supermarkets per year, unlimited 1% on everything else. Requires good credit.
  
• Amazon Store Card: 5% cash back on all Amazon purchases for Amazon Prime members only. No annual fee. Requires fair credit.
  
• Target REDcard: 5% cash back at Target and Target.com. No annual fee. Requires fair credit.
  
• Lowe’s Store Card: 5% cash back at Lowe’s. No annual fee. Requires fair credit.
  
• Staples Credit Card: 5% cash back at Staples. No annual fee. Requires fair credit.

There are even more store cards that offer 5% cash back rates, so it’s worth looking into what your favorite retailers bring to the table. Pretty much all store credit cards only require fair credit to get, too. But for overall value, Discover it – Cashback Match is your best bet for a 5% cash back credit card because it actually gives you up to 10% back the first year. You need good credit, though. 

The best $500 credit card bonus offer is the Capital One Venture Rewards card, which gives 50,000 bonus miles worth $500 in travel when you spend $3,000 in the first 3 months. After that, the card keeps the rewards flowing with 2 miles per $1 on all purchases. There’s no annual fee for the first year, but the card charges $95 after that.

Chase Sapphire Preferred and Reserve are two other cards in the running for best $500+ credit card bonus. Each offers 50,000 points when you spend $4,000 in the first 3 months. That’s worth much more than $500 when used toward travel. They offer 2-3 points per $1 on travel and dining and 1 on other purchases. So while they give lots of rewards, the overall rate isn’t as high as Venture.

If you own a business, there’s a rare $500 credit card bonus available in cash from Capital One Spark Cash for Business. You’ll need to spend $5,000 in the first 3 months to get it. But that’s not too hard with business expenses. It might be a bit tougher to spend $50,000 in the first 6 months. But if you do, you can score $1,500 extra in bonus cash back as part of a limited-time promotion.

All of the $500 credit card bonus offers require you to spend at least $3,000 in the first few months to qualify. And all of the cards require good or excellent credit to get in the first place. And you’re also far more likely to get $500 worth of miles or points than cash.

Here’s are some options for a $500 credit card bonus:

• $500 credit card bonus: Capital One Venture. 50,000 bonus miles for spending $3,000 in the first 3 months. That’s worth $500 in travel. You need good credit and the annual fee is $95, waived the first year.

• $500-$625 credit card bonus: Chase Sapphire Preferred. 50,000 bonus points for spending $4,000 in the first 3 months. That’s $500 toward most rewards or a whopping $625 toward travel. You’ll need excellent credit and have to pay a $95 annual fee, which is waived the first year.

• $500-$750 credit card bonus: Chase Sapphire Reserve. 50,000 bonus points for spending $4,000 in the first 3 months. Those points are worth $500 toward most rewards or $750 in travel. The card requires excellent credit and charges a $450 annual fee.

• $500 credit card bonus: Capital One Spark Cash for Business. $500 cash bonus for spending $4,500 in the first 3 months. This card requires good credit and has an annual fee of $95, which is waived the first year.

• $600 credit card bonus: Barclaycard Arrival Plus. 60,000 bonus miles for spending $5,000 in the first 90 days. These miles are worth $600 in travel. You need good credit to get this card and there’s an $89 annual fee.
  

• $750 credit card bonus: Barclaycard Arrival Plus. 60,000 bonus miles for spending $5,000 in the first 90 days. These miles are worth $600 in travel. You need good credit to get this card and there’s an $89 annual fee.
  

• $600 credit card bonus: Southwest Airlines Rapid Rewards Premier. 40,000 bonus points for spending $1,000 in the first 3 months. Since Rapid Rewards points are worth around 1.5 cents each, that’s a $600 value. This card requires excellent credit and has a $99 annual fee.

Capital One Venture gives the best $500 credit card bonus, especially when you consider its other benefits. But several cards give bonuses worth even more. It’s good to shop around and find the card that best fits your needs.

Credit card reward redemption works a little differently for every issuer. But generally, you can redeem your rewards online or by calling your issuer’s customer service. Depending on your card, you may be able to redeem for travel, statement credits, paper checks, gift cards, merchandise and more. And you may get more value when redeeming for some things than others. The Chase Sapphire Reserve card, for example, gives you 25% more value for your points when you redeem for travel.

Some credit card companies also have special rules and restrictions for reward redemption. For example, you might be required to earn a certain amount of rewards before you can redeem. Or you might have to redeem rewards in certain increments. In rare cases, like with the Costco Anywhere Visa, you might even receive your earnings just once per year.

Given how much reward redemption procedures can vary from credit card to credit card, it’s good to read a card’s terms and conditions carefully before applying.

Here are the basics of credit card reward redemption:

• Credit card users can usually redeem rewards for travel, cash back (check or statement credit), gift cards, merchandise and more.
• Most credit card companies let customers redeem rewards online or over the phone.
• Each credit card company has its own reward redemption rules. Rules may dictate when you can redeem rewards, for example.
• Your credit card’s terms and conditions will include information about reward redemption. Be sure to read them in detail.
  
• Some scammers attempt to pose as a credit card “reward redemption center” to get your credit card details. Don’t give personal information to unsolicited callers.

There is a common phone scam where someone claims to be from the “Reward Redemption Center.” If you get this call, hang up right away and block the number. Don’t give them any personal information. The caller is trying to commit fraud, not to give you any real reward. Here’s how the scam works: they say you have won a free gift card, but you need to pay for shipping to get it. They do this to get your credit card number, then use it for fraudulent purposes.

So the bottom line is don’t trust anyone who calls saying they’re from the “Reward Redemption Center.” Your credit card issuer will never call you like this. And if you’ve earned rewards on your card, you can take care of reward redemption on your own. The only true way to redeem rewards you’ve earned is directly through your credit card company.

The best way to get 10% cash back from a credit card is by earning an initial rewards bonus. For example, a bonus of $150 cash back for spending $500 within 3 months of opening an account – a deal several cards currently offer – is 10% back three times over. The Capital One Quicksilver and SavorOne cards have that 30% cash back initial bonus offer, as do the Chase Freedom and Freedom Unlimited cards. They all have $0 annual fees.

There aren’t any 10% cash back credit cards, at least none offering that much back on all purchases. But you can get 10% cash back from some credit cards in specific spending categories or thanks to promotional offers. For example, the NHL Discover it card offers 10% off ShopNHL.com and NHL.TV purchases. And Discover it Cash Back offers 5% back in bonus categories and gives double rewards the first year, for a total of 10% cash back on some purchases.

In terms of more consistent cash back rates, the highest on the market is Amex Blue Cash Preferred’s 6% cash back on $6,000 spent per year at U.S. supermarkets. For a high rate on all purchases, the best offer is Citi Double Cash, which gives 2% cash back.

Here are the best 2% to 10% cash back credit cards:

• Best for groceries: Amex Blue Cash Preferred. 6% cash back on the first $6,000 per year at U.S. supermarkets, unlimited 3% at U.S. gas stations and select U.S. department stores and 1% on everything else. $200 for spending $1,000 in the first 3 months. In 2016, Blue Cash Preferred and Blue Cash Everyday offered a limited-time promotion for 10% cash back on U.S. wireless telephone service. But it’s long gone now.
• Best for gas: Amex Cashback Rewards Plus. 5% cash back on the first $3,000 per year in gas or military purchases, 2% on the first $3,000 at supermarkets and 1% on everything else.
• 10% first year rate: Discover it Cash Back. 5% cash back on the first $1,500 spent in quarterly categories and 1% on everything else. 10% cash back the first year, because rewards get doubled at the end of the year.
• Best for hockey fans: NHL Discover it. 5% cash back on the first $1,500 spent in quarterly categories, 1% on everything else. Rewards doubled at end of first year only for total of 10% cash back. 10% Discount at ShopNHL.com and NHL.TV.
• Best cash bonus: Chase Freedom. $150 for spending $500 in the first 3 months. 5% cash back on your first $1,500 spent in quarterly categories, 1% on everything else.
• Best for travel: Capital One Venture. 50,000 miles for spending $3,000 in the first 3 months ($500 in travel). 2 miles per $1 on all purchases.
• Best overall cash back rate: Citi Double Cash. 2% cash back on all purchases, 1% at the time of purchase and 1% when the purchase is paid off.
• Best store card rate: Overstock.com Credit Card. 8% back in Club O rewards on Overstock purchases, 2% Club O rewards on gas and groceries, 1% Club O rewards on everything else.

The highest cash back rates all have caps. But you’ll always earn at least 1% back when you make a purchase.

Also note that some cards with high cash back earning rates have bonus categories that change every few months. Others have bonus categories that stay the same. In many cases, cards with lower but unlimited rates, like Citi Double Cash, will give more value in the long run.