Credit Cards

What Credit Card Has Best 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. 8 minute read

There are various methods to earn (at least) 5% cashback on your everyday purchases if you’re looking for a cashback credit card. 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 certain credit cards for the purchases we’re making. In addition, getting money back is always a good thing.

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. The information you’ll find in this post will explain how cash-back incentives operate and how you can save 5% or more on many of your daily purchases.

How cashback rewards work

Paying with your credit card and receiving a portion of your purchase as “cash” back is an easy way to get cashback on your purchases. It’s a terrific method to save money on things you’d otherwise have to pay for. For example, some credit cards provide generic rewards like “1.5 percent cash back on all purchases,” while others have particular spending areas like “6 percent cash back on groceries.” It may seem like these savings are insignificant, but over the course of a year, they may really add up.

Putting money back in your pocket is never a bad thing, regardless of whether or not you have a credit card that gives you points or miles for every purchase you make. I saved a lot of money on my monthly costs by using reward cards for a while. Choosing between a cash-back credit card and one that offers airline miles might be a difficult decision.

Despite the fact that cashback rewards aren’t common, they are possible. If you’re looking for a credit card that offers 5% cashback on all transactions, you’ll have to go elsewhere. However, there are certain cards that provide more than 5% cashback in particular spending areas.

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.

You should look for credit cards that provide at least a 5% cashback bonus

Blue Cash Preferred Card from American Express

Using the American Express Blue Cash Preferred Card, cardholders may receive cashback in excess of 5% in certain areas. Cashback on purchases at U.S. supermarkets (up to $6,000 a year, after that 1X) and select U.S. streaming services can be earned with this credit card, making it one of the best credit cards for grocery shopping. You’d get $252 in cashback if you spent $4,000 a year on food for your family and $200 a year on streaming services. Rewards Dollars can be redeemed for a statement credit if you earn enough cashback.

Because of the $95 annual cost, several individuals shun this card (waived the first year). Nonetheless, if you use your credit card wisely to shop for groceries and get 5% cashback, you may be able to pay the annual charge. There is a total reward rate of 6% cashback at US grocery stores and streaming services (for the first $6,000 per year, after that 1X) and 3% cashback at US petrol stations (for the first $6,000 per year) and qualifying transportation (for the first $6,000).

Following the earlier example, you’ll still have $157 in cashback if you earn $252 in cashback from your spending and minus the yearly fee charge from that total (in the form of statement credits). The return on your investment is about 4%, which is fantastic. Moreover, this card comes with a generous welcome bonus. After spending $3,000 in the first six months, you’ll be eligible for a $300 statement credit.

Additionally, the American Express Blue Cash Preferred Card is one of the finest credit cards for petrol purchases, making it an excellent choice for both grocery and retail purchases.

Chase Freedom Flex Card

In order to maximize your earnings potential, the Chase Freedom Flex Card is an absolute must. 5 percent on rotating quarterly categories and trips 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 American Express. If you take advantage of the rotating categories, you may save $75 every three months, which equates to a savings of $300 over the course of the year.

You must, however, re-activate these spending categories every three months. Prior to the beginning of the quarter, you will receive an email alert. And you may easily activate it using your account site. Check out the Chase Freedom categories’ current schedule.

There is an initial 0% APR (annual percentage rate) on purchases for 15 months (then 14.99 percent to 23.74 percent (variable)) and a $0 yearly charge associated with these savings.
You may get $200 in cashback after making $500 in purchases with the card within the first three months.

U.S. Bank Cash+ Visa Signature Card

The U.S. Bank Cash+ Visa Signature Card is one of the best credit cards out now, despite the fact that it’s often neglected. When it comes to earning cashback from the Rewards Travel Center, it’s hard to beat the 5 percent cash back on two selected categories (up to $2,000 quarterly) prepaid air, hotel, and auto reservations. You’ll also get 2% cashback on one daily category and 1% cashback on everything else. However, you may pick your two favorite spending categories rather than having them pre-assigned to 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. You may earn up to 5% cashback if you plan to travel and dine out during the third quarter (July through September). 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.

For the first 15 billing cycles on debt transfers made within the first 60 days, new cards benefit from a 0% intro APR (then 13.99 percent to 23.99 percent (variable)). You’ll have to pay a charge of $5 or 3% of your amount, whichever is larger, and your balance will be subject to the usual interest rate when the promotional period ends.

Citi Custom Cash Card

The Citi Double Cash Card is a well-known flat-rate reward card from Citi, but this newest option from Citi has the potential to be much more useful.

Another Mastercard, the Citi Custom Cash, has a $0 annual fee and gives a $200 cashback incentive after spending $750 in the first three months. Each billing cycle, you may additionally receive 5% cashback on your top qualified spending category, plus an additional 1% cashback on all other purchases (up to a maximum of $500 in cashback).

In other words, if you spend the most money in a certain category, you’ll automatically get a higher proportion of your money back in that category. 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.

You can only receive 5% cash back on the first $500 you spend, but if you optimize your profits, that spending restriction still gives you at least $25 in cashback each month.
A 0% intro APR on purchases for the first 15 months (after 14.24 percent to 24.24 percent (variable)) is also available for new cards. During the first 15 months, you’ll earn a 0% intro APR on balance transfers (varying from 14.24 to 24.24 percent).

Chase Ink Business Cash Card

What did you know about cashback credit cards for businesses? The Chase Ink Business Cash Card might be a good option for you if you’re a small business owner trying to save costs.

The Chase Ink Business Cash Card offers 5 percent cash back at office supply stores and on internet, cable, or phone services (up to $25,000 combined annually), 2 percent cash back at petrol stations and restaurants (up to $25,000 combined annually), and 1 percent cashback on everything else. 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 $750 additional cashback. You could easily put thousands of dollars back into your company’s bottom line if you had access to this kind of income.

As a bonus, this card provides coverages including collision damage waiver (primary) and roadside assistance when you’re on the road. A 0% intro APR on purchases for the first 12 months (after 13.24 percent to 19.24 percent (variable)) is also available for new cards.

What is the best credit card for 5% cashback?

The greatest 5 percent cash back credit card relies on your spending habits and lifestyle. Because you won’t earn 5% cashback on every transaction, you’ll need to evaluate which cards are ideal for you based on where you spend the most. For example, the Amex Blue Cash Preferred is perfect for making grocery store purchases in the United States, while the Chase Ink Company Cash is appropriate for handling everyday business expenditures like office supplies and travel.

What is the best credit card for cashback?

In order to maximize your cashback, you should look for a card in an area where you spend the most money. Using an Amex Blue Cash Preferred credit card, for example, can help you save the most money on groceries if you do a lot of shopping (issued in the form of statement credits). A rotating bonus category card like the Chase Freedom Flex or Discover it Cash Back can be ideal for someone who doesn’t routinely spend a lot in one area.

Bottom Line

There is no better pastime than the cashback one because it has a direct influence on your money, which is excellent. Having said that, there is no “best” credit card for cashback. If you’re looking for the most bang for your buck, choose a cashback credit card.

When picking on a credit card (or cards), think about your lifestyle, normal spending, and financial needs before making a final decision. If you’ve learned anything from this post, it’s that there are a variety of cashback credit cards out there and that you can combine them to get the most bang for your buck.

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