Let’s start this guide by stating an obvious truth.
Everyone loves receiving cashback. By applying for a cashback credit card, you can earn valuable rewards for everyday purchases, like groceries, gas, and dining at restaurants.
In fact, the more you use your cashback credit card, the more money you’ll earn.
There are, of course, many factors to consider when choosing the best cash rewards card for you.
This guide will cover all the best cash reward credit cards of 2021 for you to compare.
Wells Fargo Active Cash℠ Card:
With this credit card, you can earn a $200 bonus after spending $1000 in the first three months. This card has no annual fee and gives cashback rewards on all your transactions, even when you shop online or over the phone.
Capital One® QuicksilverOne® Cash Rewards Credit Card:
This is one of the best credit cards for people with average credit scores (640 to 700). It offers unlimited cash back at an impressive rate of 100% percent for up to $150 each month—that’s it!
Citi Custom Cash℠ Card:
This is a great credit card for anyone who wants cashback rewards on specific categories, such as restaurants or movie theaters. For example, you could earn up to $50 back per quarter in bonus rewards spent at grocery stores and gas stations.
The Chase Freedom Unlimited℠:
With the Chase Freedom cash rewards card, you can earn unlimited cash back after spending $500 within the first three months of opening your account. You can also earn 15% cashback anytime without having to enroll in quarterly categories with this flexible credit card from Chase Bank.
Blue Cash Preferred® Card from American Express:
This card offers a great cashback deal for shoppers who spend at least $31 per week on groceries. You can earn up to six percent back in rewards, making it easier than ever to save money every time you shop for food and drinks.
Wells Fargo Cash Wise Visa® Card:
With this credit card from Wells Fargo, the more you use your card each month, the more cash you’ll receive as a reward—up to one percent of whatever you buy with this flexible credit card.
Chase Freedom Unlimited®:
This card is one of the best cashback credit cards because you can earn unlimited rewards and still redeem them however you choose. You do need to pay your balance in full each month, but there’s no annual fee or foreign transaction fees for this flexible cash-back credit card.
Discover It® Cash Back:
You can earn up to five percent back on different purchases each quarter. For example, you might get bonus cashback for spending at grocery stores in the first three months of opening your account and then again during the next three months.
Capital One® SavorOne℠ Cash Rewards Credit Card:
This is one of our favorite credit cards because it offers unlimited cash rewards, there are no rotating categories or activation periods needed before you can start earning rewards.
This card also has a $0 foreign transaction fee so that it’s easy to take this card with you while traveling abroad.
Citi® Double Cash Card:
You can earn cash back twice with this credit card because it gives you one percent when you buy something and another percent as you pay for your purchase.
This is also a great choice if you’re looking to build or rebuild your credit history since Citi will check your credit periodically during the first year of having an account.
Capital One® VentureOne® Rewards Credit Card:
For people who are new to using travel rewards cards, this is a good option because there’s no annual fee and provides miles equal to one cent each time they make purchases anywhere in the world.
You’ll receive 20,000 bonus miles after spending $1000 within three months of opening an account.
Chase Freedom Flex℠:
This flexible cashback credit card has no annual fee and gives you the freedom to earn unlimited rewards.
There are also no categories that limit your options, so it’s easy to redeem your points for anything from airfare or hotel stays to gift cards, entertainment spots as well as cash back into a checking account.
Blue Cash Everyday® Card from American Express:
With this credit card from Amex, you can earn up to three percent back on groceries every time you shop.
You’ll also get two percent back at gas stations and department stores each time you fill up or make a purchase in these departments – all with no rotating reward categories needed.
Bank of America® Customized Cash Rewards Credit Card:
This is one of our favorite cash back credit cards because it’s customizable.
You can earn rewards for gas, groceries, and wholesale clubs with this flexible card. Plus, there’s no expiration date on points that you redeem each month, so they never expire as long as your account remains open.
Capital One Quicksilver Cash Rewards Credit Card:
This cashback credit card allows you to earn unlimited one-percent cash back rewards on all purchases.
There are no categories that limit how or where you spend your money, so it’s easy to maximize the earning potential of this flexible spending account.
Bank of America® Unlimited Cash Rewards Credit Card:
Another good option for earning cash back is this credit card.
You can earn unlimited one-percent cash rewards on all purchases with no annual fee and you’ll receive a 0% introductory APR for the first 12 billing cycles after account opening, making it easier to pay your bill while you build up savings.
Discover It® Cash Back Match™:
This flexible cashback credit card has an easy redemption method because there are no expiration dates or limits on how long points last when they’re redeemed each month – so you don’t have to worry about losing out if your rewards balance expires.
There’s also a great way to get even more from Discover because every time new members refer friends using their referral code.
Blue Cash Everyday® Card from American Express:
This is another good option for people who are new to cash back credit cards because there’s no annual fee and provides two percent back at the grocery store every time you shop.
You’ll also get one percent on all other purchases with this flexible spending account that allows users to redeem their points in a variety of ways.
Best Cash Back Cards for Specific Scenarios
Above are the best cash back credit cards to consider in 2021. If you want to select a credit back credit for your specific use, refer to the information below to make the best choice.
Best Pick for 5% Cash Back Categories: Citi Custom Cash℠ Card
If you spend a lot of money on gas, groceries and at the mall each month then this is a good credit card for your lifestyle.
You can earn five percent cash back in those three categories with no limits on how much money you can save – as long as an account remains open.
Best Cash Back Credit Card With No Annual Fee: Capital One® VentureOne® Rewards Credit Card
For people who are new to using travel rewards cards, this is a good option because there’s no annual fee and provides miles equal to one cent each time they make purchases anywhere in the world.
It also has been known to provide sign-up bonuses that include 20,000 bonus miles after spending $1000 within three months.
Best Pick Offering Incentives and Ongoing Rates
This is a good choice for people who want the option to choose their own cash back rewards categories.
How Do Credit Card Issuers Define Bonus Category Spending?
Users can earn five percent in different areas each quarter, and then one percent on all other purchases – with no limits or expiration dates.
This flexible spending account also provides users with an incentive that adds extra money into their balance when they sign up for automatic payments from your checking account every month.
Best Pick Offering 0% APR Period for Purchases
If you’re looking for a credit card that will make it easier to pay off your balance without incurring interest, this is a good option.
This cashback credit card provides an introductory 0% APR on purchases and balance transfers for the first 12 billing cycles after opening a new account.
Customers can also earn six percent back at grocery stores every time they shop with no limits or expiration dates – as long as their account remains open.
Best Pick for High Spenders: Alliant Cashback Visa® Signature Credit Card
This is a good choice for people who spend at least $12,000 per year.
You can earn three percent cash back on all purchases with this flexible spending account that allows users to redeem their points in a variety of ways.
Best Pick For Consumers Who Want Unlimited Rewards: American Express Cash Magnet™ Card
If you don’t want to keep track of rotating categories or different thresholds then this credit card might be the option for you because it offers unlimited one-percent cash back on every purchase.
Users will also receive special discounts and benefits if they sign up for an online account while receiving additional perks like no annual fee and waived foreign transaction fees when traveling abroad.
How to Choose the Best Cash Back Credit Card in 2021
If you’re considering choosing a cash back credit card, then you’ve come to the right place. All of the credit cards above are excellent options, but here is the information you need to make an excellent choice.
Understand That There are Three Types of Cash Back Credit Cards:
Before you make a selection, here are the three types of credit cards to consider:
- Flat-Rate Cash Back Credit Cards: These credit cards typically include a certain percentage in cash back on every purchase. For example, the Capital One® VentureOne® Rewards Credit Card provides one percent and allows users to redeem their points in different ways – like for travel or gift cards.
- Tiered-Rate Cash Back Credit Cards: These credit cards will typically provide a certain percentage on purchases depending on the type of purchase. For example, you might get two percent cash back at restaurants and gas stations but one percent for all other purchases that are considered general spending.
- Rotating-Rate Cash Back Credit Cards: This is another option where consumers can choose to earn five percent in different areas each quarter like grocery stores or wholesale clubs – with no limits or expiration dates as long as their account remains open.
Each Cash Back Credit Card Has its Own Rules:
Once you understand the different types of cashback credit cards, then it’s important to consider how they work. The following is a list of common questions and answers regarding each type:
- How do I earn points with a flat-rate cash back credit card? You will receive one percent in rewards on every purchase when using this type of flexible spending account.
- How often can I expect my reward from a tiered-rewarding credit card? These accounts typically allow users to receive their cash back once per billing cycle or at certain thresholds that are set by the company issuing the card – like $25 for example.
- Do rotating rate purchases expire? No, these offers don’t have expiration dates so you can rack up your points until you’re ready.
Always Watch Out for Annual Fees:
It’s also important to always monitor the fees associated with cash back credit cards. Before signing up for an account check if there is an annual fee and how much that will be based on your spending habits.
If you do not spend more than $12,000 per year then another card might offer better value over one of these three options due to its lower fees – like this no-annual-fee option which provides rewards starting at five percent in rotating categories each quarter.
Also, note that most flat rate purchases only earn users one percent or less so this isn’t a great choice unless they also waive foreign transaction fees while traveling abroad.
The Bottom Line
Choosing the best cash rewards card doesn’t have to be a maze.
As you can see, there are tons of cash rewards credit cards to choose from in 2021. Still, by using this guide, you can pick the best cash back credit card for your particular use and learn how to make the best selection.
