Cash back credit cards are popular because they provide tangible, easy-to-understand benefits. Who doesn’t like getting a credit on their monthly credit card statement – or, better yet, actual cash deposited into the account of their choice? Cash back credit cards can be even more popular than our top-rated gas credit cards and travel rewards cards.
But not all cash back credit cards are created equally.
Some offer the same cash back rate on all purchases. Others offer higher cash back rates on certain spending categories, such as groceries or gas, and lower rates on everything else. Others offer bonus cash back on spending categories that rotate every quarter. A few accrue cash back on purchases and monthly payments. And some cash back cards even hew to hybrid models, with cash back on certain spending categories and different types of rewards (such as airline miles) on others.
You’ll find each type of card on this list of the best cash back cards available to U.S. consumers today. Keep in mind that most cash back credit cards require applicants to have good to excellent credit – usually indicated by a credit score above 700, and sometimes even higher. If you don’t meet that threshold, work on building your credit before applying.
1. Chase Freedom Unlimited
1.5% Cash Back on All Purchases; Sign-up Bonus Worth $150
Chase Freedom Unlimited is similar to the flagship Chase Freedom Card, but with an important distinction: Instead of flat 1% cash back and rotating 5% cash back categories with quarterly spending caps, it simply earns an unlimited 1.5% on all purchases. You can redeem for virtually anything, in any amount, at the Chase Ultimate Rewards® portal – including cash equivalents, merchandise, and travel.
Chase Freedom Unlimited has a great (and sometimes overlooked) perk for loyal Chase credit card customers. If you also have the Chase Ink Business Preferred ($95 annual fee) business card or the Chase Sapphire Preferred ($95 annual fee) travel rewards card, you can transfer points earned through Freedom Unlimited to those accounts. You can then transfer those points at a 1-to-1 ratio to a number of different frequent traveler programs, or redeem them for travel purchases through the Ultimate Rewards portal and receive a 25% bonus (for instance, boosting the value of a 50,000-point redemption to $625). However, keep in mind that you need to obtain either Ink Preferred or Sapphire Preferred/Reserve – and remember, having Chase Freedom Unlimited doesn’t necessarily qualify you for those cards.