Want to compare cashback cards? Use our filter to select up to four cards to start sizing up your choices side-by-side.
There are a few particular features you’ll want to look at when comparing cashback credit cards.
Why it matters. Knowing which card offers the highest rewards in a particular category means you can gauge which card best fits your purchasing needs.
Why it matters. A signup bonus can significantly up your rewards, especially if you plan on use the card to make a large purchase within the first three months of account opening.
Why it matters. This will allow you to pay off a large purchase over time without worrying about interest during the intro period.
Why it matters. If you don’t think you’ll use the card’s perks enough to outweigh the fee, you’ll want a no-annual-fee option.
A cashback credit card pays you back a small portion of what you spend. For example, if it offers 1% cash back, you’ll receive $1 in rewards for every $100 you spend. This makes cashback cards one of the simplest card types when it comes to earning value on your credit card purchases. Here’s a small breakdown of how it all works.
There are four types of cashback cards:
These simple cards earn the same percentage for nearly every type of purchase. The average flat-rate cashback card earns 1.5% back on each purchase, though the highest you can find on the market is 2% back.
Tiered cards earn higher cashback on specific categories than you could earn with a flat-rate cashback card. Typical categories include everyday spending areas such as gas and groceries. These cards can earn anywhere from 3% to to 6% cashback on the bonus categories, though the most lucrative categories often have annual earning caps. Anything purchased that isn’t included as part of a tiered category will earn you just 1% back.
These cards earn up to 5% on select categories that change each quarter. These categories also typically feature earning caps, though they refresh during the category change each quarter. Like the tiered cashback cards, you’ll earn 1% on any spending outside the bonus categories.
Crypto cards are the newest form of cashback card to hit the market and work quite differently than a traditional cashback credit card. Purchases made on these cards earn rewards in the form of a select cryptocurrency rather than cash and require knowledge of cryptocurrencies to prove worth it. Read more about the handful of cards available at our full crypto card guide.
The secret to really ramping up your cash back is to create a credit card earning strategy. Here’s a simple breakdown of how it works.
Ideally, you’ll have two or three cashback cards that can cover any reward category “gaps” that you might otherwise have with just one or two cards.
Because they’re so straightforward and easy to use, cashback credit cards are nearly always worth a spot in your wallet. Here’s a quick rundown of whether you might consider adding one to your card collection.
Cashback credit cards can be an excellent financial tool, but there are also some drawbacks to consider.
If you’re traveling abroad and you want to avoid paying foreign transaction fees while also earning cash back on your purchases, consider the following:
The top cards often have cashback rewards of 5% or more. But which one is the best for you depends on how you spend.