Editor’s note: This is a recurring post, regularly updated with new information.
Sometimes you don’t need your credit cards to award you airline miles so you can fly to an exotic location in first class — it’s actually inadvisable to do that right now anyway. Instead, you need your everyday purchases to give you flexible, always in style, forever useful cash. In general, TPG gives preference to transferable points and using your points to travel, but on some days, cash is king.
Today I want to go over the top cash-back credit cards and a few others that award transferable points that can be used as cash.
The best cash-back credit cards for 2020
- Capital One® Savor® Cash Rewards Credit Card: Best for dining and takeout
- Citi® Double Cash Card: Best for balance transfer
- Blue Cash Preferred® Card from American Express: Best for gas, groceries, and streaming
- Chase Sapphire Preferred Card: Best for everyday spending
- Chase Freedom Unlimited: Best for 0% APR
- Chase Freedom: Best for rotating bonus categories
- Capital One® Venture® Rewards Credit Card: Best for flat-rate rewards
- Capital One® Spark® Cash for Business: Best for business cash-back
- Ink Business Cash Credit Card: Best for small business spending
- Bank of America® Cash Rewards credit card: Best for online shopping
- Discover it Cash Back: Best for your first credit card
- Wells Fargo Propel American Express® card: Best for commuters
| Credit Card | Welcome Bonus | Annual fee | Unique Perks |
| Capital One Savor Cash Rewards Credit Card | $300 cash bonus once you spend $3,000 on purchases within 3 months of account opening. | $0 first year, then $95 | 4% cash back on dining and entertainment; 2% at grocery stores |
| Citi Double Cash Card | No welcome bonus. | $0 | 2% cash back on all purchases (1% when you make purchases, 1% when as you pay your bill) |
| Blue Cash Preferred Card from American Express | $250 statement credit after you spend $1,000 in purchases in your first 3 months of account opening. Terms apply. | $95 (see rates and fees) | 6% cash back on purchases at U.S. supermarkets (on up to $6,000 of spending each reward year, then 1%) and on select U.S. streaming subscriptions; 3% on transit and at U.S. gas stations |
| Chase Sapphire Preferred | 60,000 Ultimate Rewards points after you spend $4,000 on purchases in the first 3 months. This can be used for $600 cash back. | $95 | Earn 2x points on travel and dining, 1x elsewhere. You can redeem points for cash back or at a higher valuation toward travel. |
| Chase Freedom Unlimited | $150 cash back after spending $500 on purchases in the first 3 months of account opening. | $0 | 1.5% cash back on every purchase |
| Chase Freedom | $150 cash back after spending $500 on purchases in the first 3 months of account opening. | $0 | Earn 5% back in rotating bonus categories, on up to $1,500 spent each quarter (activation required) |
| Capital One Venture Rewards Credit Card | 50,000 miles after spending $3,000 in the first 3 months. The 50k miles are worth a minimum of $250 – $500 (or potentially more if used for travel) | $0 first year, then $95 | Earn 2x on all charges |
| Capital One Spark Cash for Business | $500 cash back after $4,500 in spending in the first 3 months | $95, waived the first year | Unlimited 2% cash back |
| Ink Business Cash Credit Card | $500 cash back after you spend $3,000 on purchases in the first 3 months | $0 | 5% cash back on the first $25,000 spent in combined purchases at office supply stores, on cellular phone, landline, internet and cable TV services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year, 1% cash back elsewhere. |
| Bank of America Cash Rewards credit card | $200 cash bonus after spending $1,000 in purchases within 90 days of account opening | $0 | 3% cash back on in the category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings), 2% at grocery stores and wholesale clubs (up to $2,500 in combined bonus category spend each quarter; then 1%) |
| Discover it Cash Back | Discover will match all the cash back you earn during the first 12 consecutive billing periods that your new account is open. The match occurs at the end of the 12th consecutive billing period, as opposed to throughout your first year. | $0 | 5% cash back on up to $1,500 in purchases in rotating categories each quarter you activate |
| Wells Fargo Propel American Express® card | 20,000 points worth $200 with $1,000 in spending in the first 3 months of account opening. | $0 | 3x points on dining, travel, gas stations and select streaming services |
The information for the Wells Fargo Propel Amex, Capital One Savor Cash Rewards Credit Card, Ink Business Cash, Chase Freedom, Chase Freedom Unlimited has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Citi® Double Cash Card
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Citi® Double Cash Card
$0
Reward Rates
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- Earn cash back twice. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
Blue Cash Preferred® Card from American Express
Blue Cash Preferred® Card from American Express
$95
Welcome Offer
Reward Rates
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- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
- 6% Cash Back on select U.S. streaming subscriptions
- 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
- 3% Cash Back at U.S. gas stations
- 1% Cash Back on other purchases
Reader Award Winner
Chase Sapphire Preferred® Card
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Chase Sapphire Preferred® Card
$95
TPG Valuation
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$1,200
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Welcome Offer
Reward Rates
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- Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
- 2X points on travel and dining at restaurants worldwide.
- 1 point per dollar spent on all other purchases.
Capital One® Venture® Rewards Credit Card
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Capital One® Venture® Rewards Credit Card
$0 intro for first year; $95 after that
TPG Valuation
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$700
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Welcome Offer
Reward Rates
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- Earn unlimited 2X miles on every purchase, every day.
Capital One® Spark® Cash for Business
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Capital One® Spark® Cash for Business
$0 intro for first year; $95 after that
Welcome Offer
Reward Rates
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- Earn unlimited 2% cash back for your business on every purchase, everywhere, no limits or category restrictions.
Comparing the best cash-back credit cards
Capital One Savor Cash Rewards Credit Card
Welcome bonus: $300 bonus after you spend $3,000 on purchases in the first three months of account opening.
Rewards rate: Earn 4% cash back on dining and entertainment, 2% at grocery stores and 1% on everything else.
Annual fee: $95, waived the first year
Why we chose it: If you spend a lot on dining and entertainment, you can’t get much better than the Capital One Savor. Dining encompasses restaurants, cafes, bars, fast food joints, bakeries and more. Meanwhile, entertainment will earn you 4% on a long list of purchases that includes concert tickets, movie tickets, sporting events, theme parks, certain tourist attractions and more. Of course, right now you’re probably not attending many events like that but you will again once the threat of COVID-19 subsides.
Because Capital One doesn’t charge foreign transaction fees on the Savor Card, you’ll also earn those amazing bonus rewards when you’re traveling abroad. Don’t forget that you’ll also get 8% on tickets at Vivid Seats using your Savor card through May 2020. Read our full review of the card.
Apply here: Capital One Savor Cash Rewards Credit Card
Citi Double Cash Card
Welcome bonus: N/A
Rewards rate: Earn 2% cash back — 1% when you buy and another 1% as you pay your bill each month.
Annual fee: $0
Why we chose it: One of the simplest and most rewarding cash-back cards out there is the Citi Double Cash Card. This card essentially gives you two opportunities to earn cash back: 1% when you buy and then another 1% as you pay. You only need to make the minimum payment each month to earn the second reward, but remember that paying your balance in full is always strongly recommended. Cardholders can now convert the cash back they earn to ThankYou Points via a linked ThankYou account.
This converts into an effective 2x ThankYou Point earning rate on all purchases. TPG values ThankYou points at 1.7 cents each, meaning this card would effectively get at 3.4% return on all purchases. Unfortunately, you won’t earn a welcome bonus with this card, but the long-term value it offers still makes the card worth it in my eyes. Read our full card review.
Apply here: Citi Double Cash Card
Blue Cash Preferred Card from American Express
Welcome bonus: $250 statement credit after you spend $1,000 in purchases on your new card in your first three months of account opening.
Rewards rate: Earn 6% cash back on purchases on select U.S. streaming subscriptions and at U.S. supermarkets (on up to $6,000 of spending each reward year, then 1%), 3% cash back at U.S. gas stations and on transit and 1% cash back everywhere else. Terms apply.
Annual fee: $95 (see rates and fees).
Why we chose it: Another rewards credit card with some intriguing bonus categories is the Blue Cash Preferred Card from American Express. This is a great all-around cash-back card because it earns solid rewards on categories that don’t always get a lot of love from other cards. When Amex added streaming services and transit to this card’s bonus categories, it got a major bump in value in my mind. Just remember that it charges a 2.7% foreign transaction fee (see rates and fees), so while it’s a great option for use in the U.S., you shouldn’t use it when you’re traveling abroad. Read our full review of the card.
Apply here: Blue Cash Preferred Card from American Express
Chase Freedom Unlimited
Welcome bonus: $150 back after you spend $500 in purchases in the first three months from account opening.
Rewards rate: Earn unlimited 1.5% cash back on every purchase.
Annual fee: $0
Why we chose it: The Chase Freedom Unlimited is a great card to pair with your existing Chase credit cards to earn rewards on non-bonus spending — in fact, it makes up one-third of the Chase Trifecta. If you have an Ultimate Rewards credit card like the Chase Sapphire Preferred or Chase Sapphire Reserve, you can combine rewards and take advantage of 25% to 50% Chase travel portal redemption bonuses and transfer partners.
Since TPG values Ultimate Rewards points at 2 cents each, you’ll get a 3% return on all non-bonus spending when you pair the Freedom Unlimited with a Chase Ultimate Rewards card. Read our full review of the card.
The information for the Chase Freedom Unlimited card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Chase Freedom
Welcome bonus: $150 cash back after you spend $500 on purchases in your first three months from account opening.
Rewards rate: Earn 5% cash back on up to $1,500 in combined purchases on rotating quarterly bonus categories each quarter you activate.
Annual fee: $0
Why we chose it: If you don’t mind keeping track of quarterly categories and spending caps, you can get a lot out of the Chase Freedom. The bonus categories chosen are typically seasonally appropriate and easy to maximize. For example, in the second quarter of 2020, you’ll earn 5% on grocery store purchases, streaming services and fitness clubs/gym memberships.
While you can only earn $300 a year in 5x bonus rewards annually with this card, that turns into 30,000 Ultimate Rewards points when you pair this card with the Chase Sapphire Preferred, Chase Sapphire Reserve or Ink Business Preferred Credit Card. The information for the Ink Business Preferred has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Then, you can redeem those points at a higher rate through the Ultimate Rewards travel portal or transfer them to travel partners for added value. Read our full card review.
The information for the Chase Freedom card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Capital One Spark Cash for Business
Welcome bonus: $500 bonus after spending $4,500 in the first three months from account opening.
Rewards rate: 2% cash back on all purchases
Annual fee: $95, waived the first year
Why we chose it: The value in the simplicity of cash-back business cards can’t be overstated. While transferable points can be more valuable, it can be incredibly time-consuming to extract that extra value. Also, when it comes to travel credit cards, the rewards can often only be used for travel — and you might not be doing a lot of that right now. Sometimes your business might need that extra cash for other expenses.
What makes this card even better is it earns an unlimited 2% cash back on every purchase. You don’t need to juggle multiple cards as you try to maximize specific bonus categories. Simply swipe the Spark Cash and enjoy a straightforward return on every purchase.
Apply here: Capital One Spark Cash for Business
Ink Business Cash Card
Welcome bonus: $500 cash back after you spend $3,000 on purchases in the first three months from account opening.
Rewards rate: 5% back on the first $25,000 spent in combined purchases at office supply stores and on cellular phone, landline, internet and cable TV services each account anniversary year. You’ll also earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year and you’ll get an unlimited 1% cash back on everything else.
Annual fee: $0
Why we chose it: This is a very rewarding small business credit card with a large welcome bonus and generous bonus categories — all with no annual fee. If you max out your bonus spending in both 5% and 2% categories, that ends up being $1,750 in cash-back rewards earned each year. For a no-annual-fee credit card, that’s great potential for earned rewards. Of course, if you’re pairing this card with a Chase Ultimate Rewards card (including all other Chase Ink Business cards), your rewards could be more valuable when used for travel as that $1,750 turns into $3,500 in potential travel rewards value.
The information for the Ink Business Cash card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Bank of America Cash Rewards credit card
Welcome bonus: $200 bonus after you spend $1,000 within the first 90 days of account opening.
Rewards rate: 3% back in the category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement and furnishings) and 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined bonus category purchases each quarter (then 1%). You can change your 3% category once a month.
Annual fee: $0
Why we chose it: Having the option to get a 3% bonus on online shopping across a wide variety of retailers is terrific. Plus, depending on your banking relationship with Bank of America, that 3% return can go as high as 5.25% back if you qualify for the top tier of the Preferred Rewards program. If your spending habits change throughout the year, the Bank of America Cash Rewards card should definitely be on your radar. Read our full card review.
Read the card review: Bank of America Cash Rewards credit card
Discover it Cash Back
Welcome bonus: Discover will match the cash back you earn during your first year with the card.
Rewards rate: Earn 5% cash back on up to $1,500 you spend each quarter on rotating categories (activation required), then 1% on all other purchases. For the second quarter of 2020, you’ll earn 5% cash back at gas stations, on Uber and Lyft services and at wholesale clubs (up to $1,500 in purchases this quarter after activation).
Annual fee: $0
Why we chose it: The Discover it Cash Back card is a great option for your first credit card. It’s easier to get approved for and you can earn a decent amount of cash back if you keep up with your rotating categories each quarter. With the cash back match at the end of your first year, you can earn up to $600 in total cash back just by maximizing bonus category spending. Check out our ultimate guide to Discover cards for more details.
Wells Fargo Propel
Welcome bonus: Earn 20,000 points after you spend $1,000 on purchases in the first three months of account opening.
Rewards rate: Earn 3x on dining (eating out and ordering in), gas stations, transit, travel and select streaming services; 1x on everything else.
Annual fee: $0
Why we chose it: Though the Wells Fargo Propel technically earns points, not cash back, these points are redeemed at a fixed-value, making the card similar to others on this list. It’s a great card for beginners. You’re not having to pay an annual fee, but you will earn 3x on a number of common spending categories.
While points and miles gurus might get frustrated with points that are only worth 1 cent each, beginners won’t have to memorize award charts or research transfer partners in order to maximize a redemption. Read our full card review.
Cards that earn points that can be used for cash back
While some credit cards were designed to primarily — or only — earn cash back, others can play multiple roles, depending on your current needs and wants. Here are two examples of cards that earn points that can be used for travel, but also cash back if the need strikes.
Chase Sapphire Preferred Card
Welcome bonus: 60,000 Ultimate Rewards points awarded after $4,000 in spending in the first three months of account opening.
Rewards rate: Earn 2x on travel and dining charges around the world. Earn 5x on Lyft charges and 1x elsewhere.
Annual fee: $95
Why we chose it: It’s hard to beat the protections and versatility that comes with the Chase Sapphire Preferred. You can use the points at a rate of 1 cent each toward statement credits or cash back. If you decide to use them for travel, you can increase their value to 1.25 cents each by booking via Chase Travel. This value can be bumped up to 2 cents per point with hotel and airline transfer partners such as Southwest, United, Hyatt, Marriott and more.
If you aren’t going to use all your points for cash back and may want to use some for travel, this card is a solid option.
Apple here: Chase Sapphire Preferred
Capital One Venture Rewards Credit Card
Welcome bonus: 50,000 miles after spending $3,000 on purchases in the first three months of account opening.
Rewards rate: Earn 2x miles per dollar charged to the card
Annual fee: $95 annual fee, waived the first year
Why we chose it: The Capital One Venture Card is very simple to use in that it earns 2x miles on all purchases. When you redeem those miles to erase a travel charge on the card or redeem for a gift card, the points are worth one cent each. You can also choose to transfer the points to a number of hotel and airline travel partners.
However, you can also redeem the miles for cash back. The bad news is that the miles are then only worth a half-cent each instead of the 1 cent each when used for travel or gift cards. That means this card is not a good choice if you primarily want to earn cash back. However, if you want to redeem for a mix of travel, gift cards and occasional cash back, it is an option.
Apply here: Capital One Venture Rewards Credit Card
Cash back credit cards that require a membership
Some credit cards have specific membership requirements. The following cards can be good options, but I’ve left them off the main “best cash-back cards” list due to their membership requirements:
- Costco Anywhere Visa® Card by Citi: 4% on eligible gas (on up to $7,000 per year; then 1% thereafter), 3% on restaurants and eligible travel purchases and 2% at Costco. The card has no annual fee if you have a paid Costco membership.
- Fidelity Rewards Visa Signature Card: 2% on all purchases with no annual fee (must have a specific Fidelity account).
- Alliant Cashback Visa Signature Credit Card: 2.5% on all purchases, with a $99 annual fee (must be an Alliant Credit Union member).
- Sam’s Club Mastercard: 5% on gas (on up to $6,000 per year, then 1% thereafter) and 3% on dining and travel. The card has no annual fee (must have a Sam’s Club membership, must visit Sam’s Club location to redeem, cash back capped at $5,000 annually).
- USAA Cashback Rewards Plus American Express® Card: 5% on the first $3,000 on combined gas and U.S. military base purchases annually. Earn 2% on the first $3,000 on grocery purchases annually with no annual fee (must be a USAA member).
The information for the Fidelity Rewards Visa, Sam’s Club Mastercard, USAA Cashback Rewards Plus American Express® Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
How do cash-back credit cards work
Cash-back cards reward you a percentage (usually somewhere between 1% and 5%) of each purchase. Those rewards are pooled into an account as cash back, which you can then use as a statement credit or have deposited into your bank account. Cash back offers a more straightforward way of earning and redeeming rewards compared to points and miles.
Rather than having to keep up with point valuations and transfer partners, you always know what you’re getting with cash back in terms of value and redemption options. However, this can also mean that cash back is more limited. Points and miles can often be redeemed at a far greater value than just 1 cent per point. But if you’re looking for an easy way to earn rewards that can be used for anything, cash can be the best option.
Common types of cash-back credit cards
With so many cash-back card options, it can be hard to narrow down which card might be right for you. To start, I would take a look at which type of cash-back card you want. Here are a few common types and the advantages of each:
Flat-rate: These are cards that earn the same rewards rate across all spending. An example is the Citi Double Cash because you’re earning the same 2% across all categories (1% when you make purchases, 1% as you pay your bill). A flat-rate card is great for everyday spending because you don’t have to juggle specific bonus categories, but it does limit your earning potential on popular categories such as dining or travel.
Tiered: Similar to most travel credit cards, these cash-back cards offer higher bonus earnings for specific, static categories. For example, the Blue Cash Preferred offers 6% cash back on one set of categories, 3% on others and 1% on non-bonus spending. While these cards are excellent for maximizing rewards for categories you spend a lot on each month, you won’t necessarily earn bonus rewards on every purchase. These are best to pair with a flat-rate or complementary tiered card.
Rotating categories: Rotating category cards typically offer 5% cash back on certain categories that shift every quarter. The Chase Freedom and Discover it Cash Back are both examples. While 5% is an excellent bonus rate, keep in mind that these cards typically limit your bonus earning to $1,500 each quarter you enroll and you have to activate new categories each quarter.
Choose-your-categories: A newer cash-back category that has sprung up in recent years is the choose-your-categories cash-back card. These are cards that allow you to choose the category (or categories) that you earn your bonus rewards in each month. I personally love these cash-back cards because they allow you to customize your rewards structure in a way other cards do not. This type of card is great if your spending habits change throughout the year. The Bank of America Cash Rewards credit card is one example of such a card.
How to choose a cash-back credit card
What things should you look for when you’re comparing credit cards that offer cash back? Here are some factors to consider:
- Earning rates: How much cash back will you earn? Is it consistent across all purchases, or does the card restrict the best rates to specific types of purchases? Since cash back by definition provides you with money to go back in your wallet, there isn’t any way to truly “maximize” the points or miles you earn. Instead, be sure to evaluate the exact earning rates compared to your typical spending patterns.
- Ease of redemption: Not all cash-back cards are created equally when it comes to actually getting the cash in your hands or bank account. Some post rewards automatically to your statement, while others earn you points/miles that can then be redeemed for cash back or for statement credits to offset specific purchases. Be sure to read the terms and conditions of the rewards program carefully so you know how (and when) you’ll actually get the funds.
- Additional perks: A third factor involves the additional card perks and features. Does it incur foreign transaction fees? What about coverage and added protection for your purchases or trips? These benefits can add significant value to a card.
- Annual fee: A final aspect to consider is any possible annual fee. Some cash-back cards don’t charge an annual fee, but others do. It’s critical to crunch the numbers to see if the annual fee is offset by the earning rates on the card.
Maximizing cash-back rewards
Cash back sometimes gets a bad reputation in the travel rewards game because it’s not as easy to maximize. While you can’t redeem cash back for the same value as Chase Ultimate Rewards points or Amex Membership Rewards points, cash back is still a valuable tool for when money is tight or you just want a simple earning structure.
Cash back can also be deposited into a high-yield savings account to build up your emergency fund. You can invest your cash back for long-term gains and an early retirement nest egg. Even if you’re a frequent traveler, a cash-back card can help you build a cash fund for components of vacations that can’t be covered with airline miles.
Bottom line
The credit card rewards game isn’t all or nothing when it comes to earning miles or cash back. You can have a card for each, or even a card that does a little bit of both.
Cash-back cards have played an integral role in my overall credit card strategy, helping me offset the cost of travel expenses that points and miles don’t cover. Plus, there’s no doubt that earning cash back can be simpler and easier to quantify — something casual travelers and beginners can both appreciate.
Related guides:
- Best gas credit cards
- Best credit cards for groceries
- Best credit cards for entertainment spending
- Best small business credit cards
- Best credit cards for everyday spending
- Best dining credit cards
Additional reporting by Katie Genter, Benji Stawski and Summer Hull
Featured photo by Isabelle Raphael/The Points Guy.
For rates and fees of the Blue Cash Preferred, please click here.
This is The Points Guy’s permanent page with the best currently available credit cards for cash back, so you can bookmark it and check back regularly for updates. Keep in mind you may see some reader comments referring to older offers below.
