A cashback credit card is almost always the best option for someone looking for a new credit card. You can find some with no annual fee, which means you can make an easy profit off using the card regularly. But not all of them are great; for excellent borrowers, a cashback credit card comes with a higher APR, so there has to be a real benefit.
We have examined hundreds of credit cards recently, and only a handful or so were worth recommending to anyone at all. The shortlist we have compiled in this post features nothing but high-quality cards. Sure some will have weak points, but each will blossom as being the best option for someone.
If you’re interested in a cashback credit card, there are literally hundreds you could pick. A lot of them are backed by big names like American Express, Barclays, and Capital One. These are certainly dependable choices, but you might find yourself looking for alternatives to get better cashback rewards.
You will find that cashback credit cards typically offer anywhere from 1% to 5% on your purchases. The difference is that the higher rewards are usually assigned to specialty purchases, like gas and eating out. If you’re getting a flat rate or buying groceries or physical goods, you’re usually looking at 1% to 2% cashback.
So here’s a look at the cashback credit cards that we at Elite Personal Finance recommend the most in 2021!
This cashback credit card gives you 1% on everything you spend. You also get 5% when paying for gas, eating out, and shopping on Amazon. The 5% cashback booster applies for a maximum of $1,500 every three months.
After the first calendar year comes to an end, you’ll also get up to $200 worth of cashback matched by the card issuer. You can pick when to release the cashback rewards, and there are no minimum requirements for doing so.
This card also features 12 months with 0% interest and a 0% fee on balance transfers. You don’t have an annual fee to cover. You even have access to your FICO score regularly at no extra cost.
These two credit cards are both highly legitimate, and they have a lot of similarities. Neither of the two has an annual fee, and they both give you $150 if you spend at least $500 in the first three months of having the card.
Here’s where they get different:
Chase Freedom gives you 1% on everything you buy, but you actually get 5% back quarterly for gas, food, and wholesale store purchases.
Chase Freedom Unlimited gives you a flat 1.5% cashback rate when you use their card. If you’re a big spender, this is your best option. You’ll be able to get 1.5% back regardless of how much you spend on the card.
Bank of America’s Cash Rewards card gives 1% cash back on every purchase, 2% at grocery stores and wholesale clubs, and 3% on gas for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter. They also offer a $200 online cash rewards bonus offer.
The big plus about the card is that there is no fee for having the card. It doesn’t give a huge cashback reward, but at least you know it’s guaranteed money as long as you keep paying your card off in full each month.
The first $6,000 you spend at a supermarket gets you triple points. You get double points at gas stations as well. If you have at least 30 card transactions in a billing cycle, you’ll receive a 50% point booster.
Once you have spent at least $1,000 within the first three months of using the card, you’ll get 15,000 bonus reward points. The card also offers 0% APR and 0% balance transfers for the first 12 months, and then you’ll receive an interest rate ranging from 13.24% to 23.24%, which is dependent on your credit.
This card comes with a $95 annual fee.
If you shop online a fair bit, chances are you find the best prices on a lot of the items you buy on Amazon. They have a cashback rewards credit card that gives 3% on every Amazon order. These funds can sit and be applied to future purchases.
The card is multi-functional as you receive cashback rewards for shopping everywhere else too. There’s a 2% cashback reward on gas, eating out, and shopping at pharmacies. Anywhere else you shop, you will get a 1% return on everything you spend.
If you get approved for this card, you will get a $50 Amazon gift card immediately.
You can earn $150 by just purchasing $1,000 in stuff, as long as you spend that much in the first three months. You can then earn 6% on everything you spend at supermarkets. You’ll also get 3% back on gas and department stores like Walmart and Target. Everything else will only earn you 1% cashback on what you spend.
You get 0% interest and 0% on balance transfers for the first 12 months. After that, the rate on your card will run between 13.24% and 23.24% roughly. Also, this card comes with a $95 annual fee.
Chase Sapphire Preferred (2%), Citi Double Cash Card (1-2%), and Discover it Chrome (1%).
You have to be careful when getting a credit card that offers a higher cashback at a grocery store. You won’t have your grocery shopping at places like Walmart and Target included. This could erase a lot of the value you find in getting a cashback reward card that doesn’t have a flat rate. If you shop at these kinds of stores often, you’re better off getting a slightly higher base cashback rate that applies to all your purchases.
How much does a cashback card give you back?
The amount you get back can vary drastically by card. The most notable difference is whether you’re getting a flat rate on all purchases or if it scales by shopping category. Most flat rate cards stick to the 1% back rate, although some do give 1.5% cashback. Once you get into the 2% range, the options are more limited; one of the best flat-rate cards, the Citi Double Cash card, gives 1% immediately and another 1% after the borrowed funds are repaid.
Which card gives you the most cash back?
The highest amount of cashback possible would come from a specialty rewards card. For example, Starwood Preferred Guest Card comes with a sign-up bonus worth about $600 in points. If you use them the right way, such as taking advantage of their 20% booster on 1:1 point transfers, you could make the sign-up bonus high as a $1,250 value.
How many reward cards should you have?
This is a question that gets heavily debated. Sometimes it seems like having two different reward cards can benefit you more. For instance, you can get 5% cashback (which is incredible) through Chase Freedom Unlimited, but this only counts for