The 9 Best Cash Back Credit Cards of November 2022

Cash back credit cards are an easy way to make money on everyday spending. As long as you can be responsible for paying off your credit card each month, cash back credit cards allow you to earn a percentage of every transaction — think of it as a discount on every purchase you make.

The best cash back credit cards offer an impressive cash back percentage, but they should also entice you with a hefty welcome offer, low or no annual fees and other perks that set them above typical credit cards.

Choosing the right cash back credit card for you comes down to finding a card that rewards your specific type of spending: groceries, gas, streaming services, you name it. You’ll also need to consider whether other specific rewards cards — like travel cards, grocery cards or even gas cards — are more in line with your needs.

To maximize cash back rewards, consider opening more than one cash back credit card. Just make sure you pay each card off in full every month, and space out credit card applications by at least six months to protect your credit score.

Not sure where to start? We’ve rounded up nine of the best cash back credit cards currently available. Review each credit card carefully to determine which cash rewards credit card(s) may be right for you.

The Best Cash Back Credit Cards

• American Express Blue Cash Preferred Card: Best Cash Back Credit Card
• Discover it Cash Back: Best Sign-up Bonus
• Citi Double Cash Card: Best for Beginners
• Capital One SavorOne Rewards Credit Card: Best for Dining and Entertainment
• American Express Blue Cash Everyday Card: Best for Groceries
• Wells Fargo Active Cash Card: Best Flat-Rate Cash Back Credit Card
• Chase Freedom Flex: Best Revolving Cash Back Rewards
• Capital One Quicksilver Cash Rewards Credit Card: Best for Travelers
• Citi Custom Cash Card: Best for Everyday Spending

What Are Cash Back Credit Cards?

Cash back credit cards are a simple type of rewards card: For every dollar you spend, you’ll earn a percentage of the transaction back. Unlike other rewards credit cards, which may offer points or miles with variable value assigned to them, cash back credit cards are more straightforward: You earn actual cash with every swipe.

You can typically redeem rewards as a statement credit, gift card or, in some cases, even a check or direct deposit into a linked bank account. In addition to cash back rewards, the best cash back credit cards usually offer a sign-up bonus as an incentive. You’ll need good to excellent credit to qualify.

Not sure which cash back credit card is right for you? For beginners, the best cash back credit cards are those without an annual fee that pay a flat rate (or flat percentage) of cash back for every purchase. More experienced credit card users may prefer a cash back credit card with tiered or revolving cash rewards; paying an annual fee for higher cash back rewards rates may also be worthwhile.

How Do Cash Back Credit Cards Work?

Cash back credit cards are relatively straightforward, especially when compared to travel credit cards that earn points or miles and have complex conversion formulas. So how do cash back credit cards work? You simply earn back a percentage of every transaction made with the card.

For example, if your cash back credit card earns 2% cash back on every purchase and you spend $200 at the grocery store, you’ll earn $4 back. Depending on the card, you can then claim that $4 as a check or direct deposit, as a gift card or as a statement credit.

Claiming the cash back as a statement credit is usually the easiest method; while you’ll never see the cash back in your hand or your account, it reduces your overall credit card bill. In essence, it’s like you’re buying everything at a discount.

Types of Cash Back Rewards

Not every cash back credit card works the same. In general, there are three main types of cash back rewards cards:

• Flat-rate cash back rewards
• Tiered cash back rewards
• Revolving cash back rewards

Each type of cash back rewards card offers unique advantages — and our list of the nine best cash back credit cards includes options from each category. Choosing among these types of cash back rewards comes down to your personal preferences and how you imagine you’ll use the credit card.

Flat-Rate Cash Back Rewards

The easiest kind of cash back credit card to track is a flat-rate rewards card. These cards typically offer a set flat rate no matter what purchase you make. For example, the Capital One Quicksilver offers 1.5% cash back on everything while the Wells Fargo Active Cash Card earns 2%. The Citi Double Cash Card is also a flat-rate card; its flat rate is just divided into two buckets — 1% for every swipe and then another 1% when you pay off the purchase.

Even flat rate cash back cards sometimes offer variable cash rewards when booking travel through their specific platforms. For example, you’ll earn 5% cash back when you book hotels and rental cars through Capital One Travel.

Tiered Cash Back Rewards

Some of the best cash back credit cards offer their cash rewards in tiers, meaning you’ll earn a higher percentage cash back in certain categories than you will in others. By having multiple cash back credit cards that prioritize different kinds of spending, you can maximize your cash rewards.

For example, the American Express Blue Cash Preferred pays out 6% cash back on groceries and streaming, 3% cash back on transit and gas and 1% cash back on everything else. Meanwhile, the Capital One SavorOne offers unlimited 3% cash back on dining and entertainment. If you use the former on groceries and gas and the latter on dining, you’ll earn more cash back than you would by just using a single card.

Revolving Cash Back Rewards

Rewards credit card beginners should likely stick with a flat-rate card with no annual fee and venture into tiered rewards once they have a better understanding of how cash rewards credit cards work. Perhaps the most complex to track is a cash back credit card with revolving cash back rewards.

For some rewards credit cards, this means you may earn a higher-percentage cash back on dining in the first quarter of the year but then a higher percentage on gas in the second quarter. Some other cards let you choose your higher-tier rewards category on an ongoing basis — and some cards, such as the Citi Custom Cash Card, pay out the highest percentage based on how you spend each billing cycle. If you spend the most money on groceries in a given month, that’s where you’ll earn the highest cashback; but if you drop a bunch of money on gas in the next month, the category shifts, and you’ll earn the highest percentage there.

Common Cash Back Bonus Categories

Tiered cash back credit cards and cards with revolving cash rewards may offer a limited or wide range of bonus categories. Check with your rewards credit card issuers to see how they categorize each purchase so you can maximize your rewards.

Common cash back bonus categories include:

• Travel
• Dining
• Groceries
• Gas
• Transit
• Streaming services
• Department stores
• Drugstores

Some cash back credit cards may get even more granular. The US Bank Cash+ Visa Signature, for example, has cash back categories for sporting goods stores, gyms, utilities and even furniture stores. (The US Bank Cash+ Visa Signature card did not place on our list of the best cash back credit cards but was a top contender.)

Pros and Cons of Cash Back Credit Cards

The best cash back credit cards offer an easy way for responsible spenders to make money, but they also have their drawbacks.

What to Look For in a Cash Back Credit Card

Our list of the best cash back credit cards is a great place to start when researching the right cash rewards credit card for your wallet — and often, you’ll want more than one cash back credit card to maximize rewards.

But if you’re looking for a cash back rewards credit card for the first time, what should you prioritize? Here are a few things to consider when looking for the best cash back credit cards for you:

Bonus Categories

Flat-rate cash back rewards credit cards are straightforward and easy to manage — you’ll earn the same percentage of cash back no matter where and how you spend. But if you’re thinking about a tiered or revolving rewards card, you should examine your budget and understand where your biggest expenses are.

If you spend a lot of money on dining and entertainment, look for cash back rewards credit cards with a higher percentage on those expenses. But if you spend more money on groceries and gas, you’ll want a card with higher cash rewards in those bonus categories. For the latter you might even want to think about choosing from our selection of the best gas rewards credit cards.

And if you spend a huge chunk of change each year on travel? Well, you might want to think about opening one of the best travel credit cards instead; these offer larger rewards for travel purchases and typically offer unique travel perks, like free checked bags, late hotel check-out and reimbursement for TSA Precheck.

Sign-Up Bonuses

While longer-term cash rewards rates should be your primary focus when selecting a cash back credit card, it’s still wise to compare sign-up bonuses. Sign-up bonuses for cash back credit cards are usually easy to obtain as long as you use the card for everyday purchases.

If two cash back credit cards offer comparable rewards rates and fees and you can’t choose between them, check out their current bonus offers. Whichever one has the higher bonus is the way to go.

Additional Perks

While even the best cash back credit cards fall short in the perks department when compared to travel credit cards, you still may be able to find a cash back rewards card with decent extras, like rental car insurance, extended warranty coverage, lost luggage reimbursement, cell phone protection and even roadside assistance.

Fees and Rates

Most cash back credit cards have no annual fees, though some of the tiered cards offering the highest percentage cash back may have a small ($95) annual fee. Do some number crunching to see if the higher cash rewards rate will pay for itself — and still earn you more cash back in a given year.

For example, you’ll pay $95 a year for the American Express Blue Cash Preferred but nothing for the American Express Blue Cash Everyday. But if you’ll spend enough each year with the Blue Cash Preferred, you can earn significantly more cash back, even after you account for the $95 fee.

Annual fees aren’t the only fee to consider. Many of the best cash back credit cards on our list charge foreign transaction fees; Capital One’s and Discover’s credit cards are the exception. If you plan to swipe your card outside the country a fair amount, plan to have at least one Capital One or Discover rewards card in your wallet.

Balance transfer fees are less important of an indicator; if you qualify for a cash back credit card, you likely aren’t concerned about paying down debt via balance transfers. (If you are interested in balance transfers, check out our roundup of the best balance transfer credit cards instead.)

Similarly, watch the APRs. They’re usually high for cash back rewards cards, but as long as you plan to pay off your credit card in full every month (or every week for lower credit utilization), you shouldn’t worry about the high interest rates. Those only apply when you carry a balance from month to month.

Level of Expertise

If you’re new to cash back credit cards, stick with a flat-rate rewards card. They usually don’t have annual fees, and you don’t have to track various rewards categories. More experienced credit card users who can manage multiple cards and bonus categories (without printing out a flow chart to keep in their pocket) may receive more benefits from a tiered cash back card.

Minimum Credit Score Requirement

The last thing to ask yourself before applying for a cash back credit card: Do I qualify? Like travel rewards cards, cash back rewards credit card issuers typically require good to excellent credit. Some of the cards on our list are exclusively reserved for excellent credit borrowers (740 or higher).

Frequently Asked Questions (FAQs) About Cash Back Credit Cards

You probably have a lot of questions about cash back cards and we’ve rounded up the answers to the most common ones to help you make a decision.

Contributor Timothy Moore is a writer and editor in Cincinnati who covers banks, loans, insurance, travel and automotive topics for The Penny Hoarder.

<!–

–>