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Best Cash Back Credit Cards: Maximize Your Savings
Getting a cash back credit card is leveling up in a video game. While debit cards let you spend your own money, cash back credit cards actually pay you to spend. It's easy money, as long as you repay your balance on time. In this guide, we'll share our picks for the best cash back cards and discuss everything else you need to know.
What is a cash back credit card?

A cash back credit card is a credit card that gives you a small percentage of your purchases back as cash rewards. If your card offers 2% cash back and you spend $1,000, you'll get $20 back.

The best cash back cards typically offer around 1-2% cash back for all spending. Some cards offer rewards rates as high as 5% in certain categories.

Getting cash back is like getting a small discount on everything you buy, as long as you pay off your balance each month.

Types of cash back credit cards

There are three common types of cash back credit cards:

  • Tiered cash back cards: Offer a higher rewards rate for specific categories, like groceries or gas, and lower rates on other purchases
  • Flat-rate cash back cards: Offer the same rate on all purchases, no matter where you spend
  • Rotating category cards: Offer high cash back on categories that rotate, such as dining or groceries
How to choose the best cash back credit card

Want to know a secret? There's really no “best” cash back credit card. The best card for you depends on your personal preferences, spending habits, and financial goals. Here are 7 tips to keep in mind when choosing a card:

1. Compare reward rates

Ensure that your credit card offers substantial rewards that closely align with your spending habits. If you want to maximize your rewards then consider exploring credit card points, as opposed to cash back.

2. Check for annual fees

If a credit card's benefits sound amazing then it probably has an annual fee. Always be sure to double-check before signing up.

3. Look at sign-up bonuses

Sign-up bonuses can provide an additional incentive to get a card, but they usually shouldn't be the sole reason for opening a card.

4. Examine redemption options

Consider all of the ways that you can redeem your card's points.

5. Check for category restrictions

Double-check to see if any categories don't get rewarded through your card.

6. Look for additional perks

Read the fine print to understand all of the extra perks your card might offer. Common extras include rental car insurance, lounge access, partner discounts, etc.

7. Consider your spending habits

It's usually best to get a card that closely aligns with your spending habits. This will help you maximize your rewards.

Start maximizing your cash back today

Opening a new cash back card is an exciting event that could mark a turning point for your finances. Here are three tips to remember after you've opened a card:

1. Always pay your card on time

A credit card is a double-edged sword: it's easy to earn rewards but also easy to get into debt.

2. Use the right card for the right purchase category

Maximize your points by using specific credit cards for different purchases.

3. Commit to your cards for the long term

Be prepared to stick to your credit card for at least a year. Opening and closing credit cards quickly can hurt your credit score.

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