Credit Cards

What Credit Card Gives The Most Cash Back

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 7 minute read

Cashback credit cards provide a variety of options to earn at least 5% back on your everyday purchases. Expenses are a fact of life. Americans spend money on everything from transportation to groceries to entertainment to office supplies to internet shopping. We can still save money when we’re shopping by utilizing specific credit cards for the same transactions. And it’s never a terrible idea to get some money back.

While it’s difficult to find a single credit card that gives you 5% cashback on all transactions, there are many more methods to receive 5% or more back on your expenditures. It does take some preparation and technique to get as amazing a cashback rate, though. Learn how cashback incentives operate and how you can save 5 percent or more on many of your daily purchases in this post.

How to get a Cashback

When you use your credit card to make a purchase, you get a portion of that price back in “cash.” An excellent method to save money on things you’d otherwise have to pay for is by taking advantage of cashback offers. For example, some credit cards provide generic incentives like “1.5 percent cash back on all transactions”, while others offer particular benefits like “6 percent cash back on groceries”. These savings may not seem like much, but they add up over the course of a year to be rather significant.

While some may argue that earning points or miles on a credit card is “better”, putting money back in your pocket is never a bad thing. I saved a lot of money on my monthly costs by using reward cards for a while. It’s a good idea to go for cash back instead of miles when you’re considering opening a new credit card.

Cashback incentives with large percentages are uncommon, although they do exist. A credit card that offers 5% cashback on all transactions is difficult to come across, so don’t bother looking for one. Some cards, on the other hand, allow you to earn even more cashback than that, up to 10% in some cases. In this article, I’ll show you which credit card issuers provide the greatest cashback credit cards and how to make the most of these cards to maximize your cashback.

American Express Blue Cash Preferred Card

Using the American Express Blue Cash Preferred Card, cardholders may receive cashback in excess of 5% in certain areas. With this credit card, you may receive 6% cash back at U.S. supermarkets (up to $6,000 per year, after that 1X) and select U.S. streaming services, making it one of the greatest options for grocery shopping on a budget! A family of four would get $252 in cash back if they spent $4,000 a year on food and $200 a year on streaming services. Reward Dollars can be redeemed as a statement credit for cash back earned.

For some, the $95 annual fee is a deterrent to applying for this credit card (waived the first year). You may still be able to pay the annual fee if you use your credit card smartly to purchase groceries and get 5 percent cashback. To summarize, the following are the benefits: You get 6% cashback at US supermarkets (up to $6,000 a year; after that, 1X); 3% cash back at US gas stations and on qualified public transit; and 1% cashback on all other purchases made in the US.

Even after deducting the annual cost of $252, you’ll still have $157 in cash back on your purchases (in the form of statement credits). A great return on your investment of roughly 4% is possible. This card also comes with a generous welcome bonus. You’ll receive a $300 statement credit after spending $3,000 in the first six months. As a bonus, the American Express Blue Cash Preferred Card is one of the finest credit cards for petrol purchases as well.

Chase Freedom Flex Card

The Chase Freedom Flex Card’s shifting categories make it a must-have for anybody hoping to earn considerable cashback. 5 percent on rotating quarterly categories and travel purchased through the Chase Ultimate Rewards site, 3 percent in restaurants (including takeout and delivery), and 1 percent on all other purchases may be earned with this Mastercard, which is issued by Mastercard. Using only the rotating categories, you may save $300 a year by earning $75 every three months.

Activating these expenditure categories each quarter is the only stipulation. A pre-quarter email will be sent to you, however. Your account gateway makes it easy to get started. Check out Chase Freedom’s current calendar of events. It is possible to save money by making purchases for 15 months at no interest and paying no annual fee. After that, the APR will range from 14.99 percent to 23.74 percent (variable).

After spending $500 in the first three months, the card offers a hefty sign-up bonus of $200 cashback.

U.S. Bank Cash+ Visa Signature Card

In the credit card business, U.S. Bank tends to be disregarded, but its Cash + Visa Signature Card should not be ignored. When it comes to earning cashback from the Rewards Travel Centre, it’s hard to beat the 5 percent cash back on two of your favorite categories (up to $2,000 quarterly) and the 2 percent cash back on one daily category you choose, as well as the 1 percent cash back on all other qualifying purchases. Unlike Chase Freedom, this card allows you to pick your two favorite spending categories rather than having them pre-selected for you.

In 2019, you have the following options for the five percent quarterly categories:

  • TV, internet, and streaming services
  • Fast food
  • Cell phone providers
  • Department stores
  • Home utilities
  • Select clothing stores
  • Electronic stores
  • Sporting good stores
  • Movie theatres
  • Gyms and fitness centers
  • Furniture stores
  • Ground transportation

Using this card allows you to plan your purchases ahead of time since you may choose your spending categories each quarter. From July through September (Q3), you may earn up to 5% cashback on your travel and dining expenses if you plan ahead. It’s possible to earn up to $100 in cash back each quarter if you maximize your spending categories to $2,000 with 5% cashback.

Besides the five percent categories, you may also receive limitless two percent cash back on one of these three options:

  • Grocery stores
  • Gas stations
  • Restaurants

The 2 percent categories are good, but they’re not the best part of this card for me. All of the other cards on this list outperform this one when it comes to the same areas.

Additionally, new cards can enjoy a 0% intro APR for the first 15 billing cycles on balance transfers made within the first 60 days of account opening (then between 13.99% and 23.99%). During the promotional period, you will be charged a fee of $5 or 3 percent of the sum transferred, whichever is larger.

Citi Custom Cash Card

In contrast to the Citi Double Cash Card, this newer product from Citi is likewise a strong tool to have in your wallet. Another Mastercard, the Citi Custom Cash, has a $0 annual fee and gives a $200 cash back bonus after spending $750 in the first three months of card use. All purchases are eligible for 1 percent of your spending, and you may receive 5 percent cash back in your top qualifying spending area each billing cycle (up to $500, and then 1 percent cash back after that).

As a result, you’ll receive the highest possible percentage of cash back in the category in which you spend the most money each month. restaurants, petrol stations, grocery shops and other retail outlets, some travel and transportation expenditures, certain streaming services, and drugstores are among the categories eligible for rebates.

Spending up to $500 a month earns you 5% back, but you’ll still get at least $25 in cash back each month if you’re smart about it. Cardholders who sign up for their first card receive 15 months of interest-free purchases at a promotional APR of 0% (then 13.99 to 23.99 percent (variable)). For the first 15 months, you’ll pay a 0% introductory APR on balance transfers (then a variable APR of 13.99 percent to 23.99 percent).

Chase Ink Business Cash Card

What if I told you that company credit cards may be redeemed for cash? It’s possible that the Chase Ink Business Cash Card might be an excellent choice for small business owners who want to save money on their business costs.

The Chase Ink Business Cash Card offers 5% cashback at office supply retailers, 2% cash back at petrol stations and restaurants, and 1% cashback on all other purchases with a combined annual limit of $25,000 on internet, cable, and phone services. This credit card also gives you 5% cashback on every Lyft trip you take.

After spending $7,500 in the first three months, you’ll get an additional $750 in bonus cashback. Many thousands of dollars might be returned to your company’s coffers with this kind of income.

To go along with the rewards, you’ll have access to benefits like rental vehicle collision damage waiver (primary coverage) and roadside assistance using this card.
For the first 12 months, the introductory APR for new cards is 0% (after 13.24% to 19.24% (variable)).

Bottom Line

For those who like to see instant results in their wallets, cashback is a terrific pastime to have! Cashback credit cards aren’t all created equal. The greatest credit card for cashback is the one that gives you the most value for your spending.

When picking on a credit card (or cards), think about your lifestyle, normal spending, and financial needs before making a final decision. Hopefully, this post has given you some insight into which cards would be a good fit for you and how to utilize numerous cash-back cards together to optimize your savings.

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