When it comes to credit cards, cash back is one of the most popular rewards programs available. With cash back credit cards, you can earn a percentage of your purchases back in the form of statement credits, checks, or direct deposits. The amount you can earn varies by card and may depend on the spending category or merchant.
Choosing the best cash back credit card can be overwhelming, as there are many options available. Some cards offer a flat cash back rate on all purchases, while others offer higher rewards in specific categories like groceries, gas, or dining. Additionally, some cards may have annual fees, while others do not.
To help you navigate through the sea of options, we have compiled a list of the best cash back credit cards for March 2023. Our list includes cards with the highest cash back rates, best bonus offers, and most flexible redemption options. Keep in mind that the best card for you will depend on your spending habits and financial goals.
How Cash Back Credit Cards Work
Cash back credit cards are a popular type of rewards credit card that lets you earn a percentage of your purchases back in the form of cash rewards. These rewards can be redeemed for statement credits, direct deposits, or even gift cards, depending on the card issuer and the specific card you have.
When you use a cash back credit card to make purchases, you earn a certain percentage of cash back on each purchase you make. Some cash back credit cards offer a flat rate of cash back on all purchases, while others offer higher cash back rates in certain categories, such as groceries, gas, or dining out.
Most cash back credit cards have a rewards structure that is tiered, meaning that you earn a higher percentage of cash back on certain types of purchases. For example, you might earn 1% cash back on all purchases, but 2% cash back on gas and groceries, and 3% cash back on dining out.
Cash back rewards can typically be redeemed once you have accumulated a certain amount of rewards, such as $25 or $50. Some credit cards may also have restrictions on how you can redeem your rewards, so it’s important to read the terms and conditions of your card carefully.
Related: Best Rewards Credit Cards of 2023
Factors to Consider When Choosing a Cash Back Credit Card
Choosing a cash back credit card can be a daunting task, with so many options available. To help you make an informed decision, we have outlined some key factors to consider:
- Types of cash back rewards: Cash back credit cards can offer different types of rewards, such as flat-rate rewards, tiered rewards, and rotating category rewards. Consider your spending habits and choose a card that offers rewards that align with your needs. For example, if you spend a lot on groceries, a card that offers higher cash back rewards for grocery purchases may be a good choice.
- Annual fees: Some cash back credit cards come with annual fees, while others do not. Consider whether the rewards you could earn with a card that charges an annual fee outweigh the cost of the fee. Additionally, some cards may waive the annual fee for the first year, so be sure to read the fine print.
- Interest rates: If you plan to carry a balance on your credit card, interest rates should be a key consideration. Cash back credit cards typically have higher interest rates than other types of credit cards, so make sure to choose a card with a low interest rate if you plan to carry a balance.
- Sign-up bonuses: Many cash back credit cards offer sign-up bonuses, such as a cash bonus or extra rewards points, for new cardholders who meet certain spending requirements within a specified time frame. Consider whether the sign-up bonus is worth the spending requirements and whether you can meet them.
- Redemption options: Some cash back credit cards offer more flexible redemption options than others. For example, some cards may only allow you to redeem your rewards as statement credits or for merchandise, while others may allow you to redeem your rewards for cash, travel, or gift cards. Consider which redemption options are most valuable to you.
- Additional perks: Some cash back credit cards offer additional perks, such as travel insurance, purchase protection, and extended warranties. Consider whether these perks are important to you and whether they justify the cost of the card.
By considering these factors, you can choose a cash back credit card that aligns with your spending habits and financial goals, and maximize the rewards you earn.
Best Cash Back Credit Cards
When it comes to earning cash back rewards, credit cards can be a great tool. With so many options available, it can be overwhelming to choose the right one. In this section, we’ll explore the best cash back credit cards on the market and break them down into different categories to help you find the right one for your needs.
Flat-Rate Cash Back Cards
Flat-rate cash back cards are a great option for those who want to earn cash back on all purchases without having to worry about rotating categories or tiers. Here are some of the best flat-rate cash back cards:
| Card | Cash Back | Annual Fee |
|---|---|---|
| Wells Fargo Active Cash® Card | 2% | $0 |
| Citi® Double Cash Card | Up to 2% | $0 |
Tiered Cash Back Cards
Tiered cash back cards offer higher rewards for specific categories of spending, such as groceries or gas. Here are some of the best tiered cash back cards:
- Blue Cash Preferred® Card from American Express: 6% cash back at U.S. supermarkets (up to $6,000 per year), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit, 1% cash back on other purchases
- Chase Freedom Flex℠: 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate, 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% cash back on dining at restaurants, including takeout and eligible delivery services, 3% cash back on drugstore purchases, 1% cash back on all other purchases
Rotating Categories Cash Back Cards
Rotating categories cash back cards offer higher rewards for specific categories of spending that change every quarter. Here are some of the best rotating categories cash back cards:
- Discover it® Cash Back: 5% cash back on up to $1,500 in purchases in rotating categories each quarter you activate, 1% cash back on all other purchases
- Chase Freedom Unlimited®: 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% cash back on dining at restaurants and drugstore purchases, 1.5% cash back on all other purchases
Bonus Category Cash Back Cards
Bonus category cash back cards offer higher rewards for specific categories of spending, such as dining or groceries, but these categories do not change. Here are some of the best bonus category cash back cards:
- Capital One® Savor® Cash Rewards Credit Card: 4% cash back on dining and entertainment, 2% cash back at grocery stores, 1% cash back on all other purchases
- U.S. Bank Cash+™ Visa Signature® Card: 5% cash back on up to $2,000 in combined purchases each quarter in two categories of your choice, 2% cash back on one everyday category of your choice, 1% cash back on all other purchases
Tips for Maximizing Your Cash Back Rewards
Getting the most out of your cash back credit card requires a little bit of strategy. Here are some tips to help you maximize your rewards:
- Choose the right card: Look for a card that offers cash back on the purchases you make the most. For example, if you spend a lot on gas and groceries, consider a card that offers bonus cash back in those categories.
- Take advantage of sign-up bonuses: Many cash back credit cards offer sign-up bonuses for new cardholders. Be sure to read the terms and conditions to understand how to qualify for the bonus and any spending requirements.
- Pay your balance in full: Carrying a balance on your credit card can negate any rewards you earn. Make sure to pay your balance in full each month to avoid interest charges.
- Use your card for everyday purchases: Use your cash back credit card for everyday purchases like groceries, gas, and dining out to earn rewards on your regular spending.
- Redeem your rewards: Make sure to redeem your cash back rewards regularly. Some cards may have expiration dates or other restrictions on redeeming rewards.
By following these tips, you can make sure you’re getting the most out of your cash back credit card and earning rewards on your everyday spending.
Best Credit Cards for Cash Back
When it comes to credit cards, cash back is one of the most sought-after rewards. Here are some of the best credit cards for cash back in March 2023:
Chase Freedom Flex℠
The Chase Freedom Flex℠ is a great cash back credit card for those who love to earn rewards on everyday purchases. Cardholders earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter they activate, and 1% cash back on all other purchases. The card also offers a $200 bonus after spending $500 on purchases in the first three months from account opening.
Chase Freedom Unlimited®
The Chase Freedom Unlimited® is another solid cash back credit card from Chase. Cardholders earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% cash back on dining and drugstore purchases, and 1.5% cash back on all other purchases. The card also offers a $200 bonus after spending $500 on purchases in the first three months from account opening.
Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card is a great option for foodies who love to dine out or cook at home. Cardholders earn 3% cash back on dining, entertainment, popular streaming services, and grocery stores (excluding superstores like Walmart® and Target®), and 1% cash back on all other purchases. The card also offers a $200 bonus after spending $500 on purchases in the first three months from account opening.
Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card is a great cash back credit card for those who want a simple and straightforward rewards program. Cardholders earn unlimited 2% cash rewards on purchases, with no category restrictions or caps. The card also offers a $200 cash rewards bonus after spending $1,000 on purchases in the first three months from account opening.
Discover it® Cash Back
The Discover it® Cash Back is a popular cash back credit card that offers rotating quarterly categories where cardholders can earn 5% cash back on up to $1,500 in purchases. All other purchases earn 1% cash back. Discover also matches all the cash back earned in the first year for new cardholders, making it a great option for those looking to maximize their rewards.
Discover it® Balance Transfer
The Discover it® Balance Transfer is a unique cash back credit card that also allows cardholders to transfer high-interest balances from other credit cards. The card offers 5% cash back on up to $1,500 in purchases in rotating quarterly categories, and 1% cash back on all other purchases. Discover also matches all the cash back earned in the first year for new cardholders.
Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express is a great cash back credit card for families who spend a lot on groceries and gas. Cardholders earn 6% cash back on up to $6,000 in purchases at U.S. supermarkets per year (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit, and 1% cash back on all other purchases. The card also offers a $300 statement credit after spending $3,000 on purchases in the first six months from account opening.
What Is Cash Back on a Credit Card?
Cash back is a type of reward offered by credit card companies that allows you to earn a percentage of your spending back in cash. The amount of cash back you can earn varies by card and by spending category. Some cards offer a flat rate for all purchases, while others offer higher rewards for specific categories, such as gas, groceries, or dining out.
Cash back rewards are typically credited to your account as a statement credit or deposited directly into your bank account. Some credit cards also offer the option to redeem your rewards for gift cards or merchandise.
It’s important to note that cash back rewards are not the same as points or miles rewards. Points and miles can be redeemed for travel, hotel stays, or other rewards, while cash back rewards are simply a percentage of your spending returned to you in cash.
Factors To Consider When Choosing a Cash Back Credit Card
Choosing a cash back credit card can be overwhelming, but understanding the factors to consider can make the process easier. Here are a few key factors to keep in mind:
- Rewards structure: Cash back credit cards offer different rewards structures, such as flat-rate cash back or bonus categories. Consider your spending habits and choose a card that rewards you for the purchases you make most often.
- Annual fee: Some cash back credit cards charge an annual fee, while others do not. If you plan to use the card frequently, it may be worth paying an annual fee to earn more rewards. However, if you don’t use the card often, a no-fee card may be a better option.
- Interest rates: Cash back credit cards often have higher interest rates than other types of credit cards. If you plan to carry a balance, look for a card with a low interest rate.
- Sign-up bonus: Many cash back credit cards offer sign-up bonuses, such as a statement credit or bonus rewards. Consider the value of the sign-up bonus when choosing a card.
- Redemption options: Cash back credit cards offer different redemption options, such as statement credits, checks, or gift cards. Choose a card with redemption options that work best for you.
By considering these factors, you can choose a cash back credit card that fits your needs and rewards you for your spending habits.
Pros and Cons of Cash Back Credit Cards
Cash back credit cards are a popular option for many consumers, offering a simple and straightforward way to earn rewards on everyday purchases. However, like any financial product, there are both pros and cons to consider before signing up for a cash back credit card. Here are some of the key advantages and disadvantages:
Pros:
- Simplicity: Cash back credit cards are often easier to understand and use than other types of rewards cards, such as travel rewards cards. With cash back cards, you earn a percentage of your spending back in cash, which can be used to pay off your balance or redeemed for other rewards.
- Flexibility: Cash back rewards can typically be redeemed for a variety of options, including statement credits, gift cards, and merchandise. This flexibility allows you to choose the rewards that best fit your needs and preferences.
- Lower fees: Cash back credit cards often have lower fees and interest rates than other types of rewards cards, making them a more affordable option for many consumers.
Cons:
- Lower rewards rates: While cash back rewards are easy to earn and redeem, they often have lower rewards rates than other types of rewards cards. This means that you may need to spend more to earn the same amount of rewards as you would with a travel rewards card, for example.
- No bonus categories: Unlike some other rewards cards, cash back credit cards typically do not offer bonus rewards for specific categories, such as dining or travel. This means that you may not earn as many rewards on certain types of purchases.
- Less value: While cash back rewards are easy to understand and use, they may not offer as much value as other types of rewards. For example, travel rewards cards can offer significant value through bonus rewards, airline miles, and other perks.
Overall, cash back credit cards can be a great option for consumers who want a simple and flexible way to earn rewards on everyday purchases. However, it’s important to weigh the pros and cons carefully and choose a card that fits your individual needs and spending habits.
