Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
Erika's Picks for Best Cashback Credit Cards
- Best for flat-rate cashback:
Chase Freedom Unlimited® - Best for groceries & gas:
Blue Cash Preferred® Card from American Express - Best for dining & entertainment:
Capital One Savor Cash Rewards Credit Card - Best for online shopping:
Prime Visa - Best for rotating categories:
Chase Freedom Flex® - Best for customized rewards:
Bank of America® Customized Cash Rewards Credit Card
A cashback credit card does exactly what it sounds like: it lets you earn cash in return for any spending you do on the card.
There are lots of different types of cashback cards out there, but the best ones offer generous percentages of cashback on popular spending categories like travel and dining out. Many come with welcome offers, too.
The right card for you will depend on your spending habits and how involved you want to be in maximizing the rewards you earn.
Best for Flat-Rate Cashback
Chase Freedom Unlimited®
Rewards Rate
- 5% cashback on travel purchased through Chase Travel℠
- 3% cashback on drugstore purchases, restaurants, takeout, and eligible delivery services
- 2% cashback on Lyft rides (through September 30, 2027)
- 1.5% on all other purchases
Welcome Offer
Offer Ending Soon! Earn a $300 Bonus after you spend $500 on purchases in your first 3 months from account opening (offer ends 1/15/26 at 9am EST).
Annual Fee
$0
If you want simple cashback rewards with no rotating categories to track, the Chase Freedom Unlimited® is a great option. It offers a flat 1.5% cashback rate on everything, plus boosted rates on common expenses like restaurants, takeout, delivery, and drugstore purchases, as well as on booking through Chase Travel℠.
Plus, it has no annual fee, which means the cashback you earn gets to stay where it belongs: in your wallet.
Here are some perks and protections the card offers:
- 6 months of complimentary access to DashPass (activate by Dec. 31, 2027)
- Extended warranty protection up to 4 years from the date of purchase
- Purchase protection for 120 days (up to $500 per item)
- Trip cancellation and interruption insurance (up to $1,500 per covered traveler and $6,000 per trip)
- Auto rental coverage for theft and collision
- Travel and emergency assistance
And, if you’re a big traveler, the Unlimited can pay off since it has a 1:1 transfer rate with other Chase cards, like the Chase Sapphire Preferred® Card.
There’s nothing wrong with wanting a bit of simplicity in your credit card rewards, and the Chase Freedom Unlimited® offers just that: no rotating categories to track and no annual fee to budget for.
You won’t get as high a potential earning rate as you would with a rotating cashback card, but you’ll get the peace of mind knowing you don’t have to activate anything and whether you’ll get enough value if a category one quarter doesn’t line up with your spending habits.
Plus, the categories where it does have boosted earning rates are common expenses, like drugstore purchases, restaurants, takeout, and delivery.
Best of all, it’s a good intro card for getting into the world of Chase Ultimate Rewards®, since you can transfer your rewards from the Unlimited to other Chase cards at a 1:1 rate.
Best for Groceries & Gas
Blue Cash Preferred® Card from American Express
Rewards Rate
- 6% cashback on purchases at U.S. supermarkets (up to $6,000 per year, then 1%)
- 6% cashback on select U.S. streaming services
- 3% cashback on U.S. gas station and transit purchases (including taxis/rideshare, parking, tolls, trains, buses and more)
- 1% cashback on all other purchases
Welcome Offer
Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
Annual Fee
$0 intro annual fee for the first year, then $95 (rates and fees)
The Blue Cash Preferred® Card from American Express earns you cashback on everything, but you can earn the most on your regular groceries, as well as on select streaming services, gas stations, and transit services (including rideshares, taxis, tolls, and public transportation).
Other notable perks include:
- Annual fee waived for first year
- $84 Disney bundle credit (enrollment required)
- Purchase protection for covered purchases (up to $1,000 per purchase, $50,000 per account)*
- Return protection (up to $300 per item, $1,000 per year)*
- Extended warranty coverage (maximum $10,000, up to $50,000 per account)*
- Access to Amex Offers for discounts and savings
- Car rental loss and damage insurance*
- 24/7 Global Assist Hotline*
- Exclusive access to presale tickets and events through American Express Experiences®
It’s important to note that cashback is issued as Reward Dollars rather than literal cash. You can only redeem this as a statement credit. Other cards allow you to withdraw cashback rewards directly, so the Blue Cash Preferred is a less flexible option.
There’s also a cap on how much cashback you can earn. The 6% reward on groceries only applies to the first $6,000 spent in a year — after that, it drops to 1%. The average U.S. household spends around $14,000 per year on groceries, which means you probably won’t earn the full reward value.
* Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
The Blue Cash Preferred® Card from American Express offers the most cashback rewards for groceries. It also offers a high reward rate for other common household expenses, including streaming services, gas, and transportation.
While there is an annual fee, the high cashback more than covers the annual cost, making it one of the best options for everyday spending.
Best for Dining & Entertainment
Capital One Savor Cash Rewards Credit Card
Rewards Rate
- 8% cashback on Capital One Entertainment purchases
- 5% on hotels and rental cars booked through Capital One Travel
- 3% on dining, entertainment, select streaming subscriptions, and grocery store purchases (excluding superstores)
- 1% on all other purchases
Welcome Offer
Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening.
Annual Fee
$0
The Capital One Savor Cash Rewards Credit Card offers some of the best cashback rewards for dining and entertainment — regardless of whether you like to go out to restaurants and see shows or stay in and binge Netflix.
And if you like to travel, you’ll also earn a high cashback rate on hotels and rental cars booked through Capital One Travel. If you enjoy live events, you’ll earn even more cashback on purchases made through Capital One Entertainment.
Other perks include:
- No foreign transaction fees
- Concierge for dining, travel, or event bookings
- Travel accident insurance
- Access to discounts through Capital One Shopping
- Extended warranty on covered purchases
- 24/7 travel assistance
- $0 fraud liability
- Credit alerts through CreditWise
- Exclusive access through Capital One Dining and Capital One Entertainment
The Capital One Savor Cash Rewards Credit Card is a good option for foodies, regardless of whether you prefer dining out or cooking at home, since it covers both restaurants and groceries. And if you're big into going to shows or streaming movies at home, you'll earn cashback both ways.
Capital One Entertainment offers sports, music, and dining events, including VIP packages and on-site perks. Not only do you get access to Capital One Entertainment with this card, but you'll also earn an impressive 8% cashback on tickets purchased through it.
Best of all, there's no annual fee with this card, which means you can earn all the cashback and use the benefits without being out-of-pocket.
Best for Online Shopping
Prime Visa
Rewards Rate
- Prime Card Bonus: Earn 10% back or more on a rotating selection of items and categories on Amazon.com with an eligible Prime membership
- 5% back at Amazon.com, Amazon Fresh, Whole Foods Market, and on Chase Travel purchases with an eligible Prime membership
- 2% back at gas stations, on local transit and commuting, and at restaurants
- 1% back on all other purchases
Welcome Offer
Get a $150 Amazon Gift Card instantly upon approval exclusively for Prime members.
Annual Fee
$0
The Prime Visa is ideal for anyone who shops a lot on Amazon, with up to 10% (or even more!) on selected items in rotating categories. Beyond Amazon, you also have boosted earning rates in categories where most of us spend the most, like restaurants, gas, transit, and rideshares.
And no annual fee means you won’t be out any money by keeping this card in your wallet.
Rewards can be redeemed as soon as the next day for Amazon purchases (with no minimum to redeem). You can also redeem for cashback, gift cards, and bookings with Chase Travel℠.
The card also comes with lots of protections that you don’t often see with a no-annual-fee credit card, such as:
- Extended warranty protection (up to 4 years from the date of purchase)
- Purchase protection for 120 days (up to $500 per item)
- Auto rental coverage for theft and collision damage
- Lost/delayed baggage coverage (up to $100 a day for up to 3 days when delayed over 6 hours)
- Travel accident insurance
You can get pretty much anything on Amazon, which means that the Prime Visa lets you earn cashback on, well, pretty much anything! Plus, you earn boosted rewards on non-Amazon purchases, too, including common expenses like gas, transit, and restaurant purchases — all with no annual fee.
We like that your rewards aren’t limited to the Amazon ecosystem, either, since you can also redeem them for cashback, gift cards, and travel at Chase.com.
Finally, it’s even a solid travel card, with boosted rewards rates on Chase Travel℠, no foreign transaction fees, and far more travel protections than you usually see on a no-annual-fee card.
Best for Rotating Categories
Chase Freedom Flex®
All information about the Chase Freedom Flex® has been collected independently by Erika.com. The Chase Freedom Flex® is no longer available through Erika.com.
Rewards Rate
- 5% cashback on rotating categories each quarter (up to $1,500 in purchases, then 1%; activation required) and travel purchases through Chase Travel℠
- 3% on dining and drugstore purchases
- 1% on all other spending
Welcome Offer
Earn $200 cashback after spending $500 in the first 3 months
Annual Fee
$0
The Chase Freedom Flex® lets you maximize your rewards through rotating bonus categories.
You earn 5% cashback on rotating categories like gas stations, grocery stores, and restaurants. The categories change every quarter, allowing you to earn a higher reward up to $1,500 per quarter (after that, rewards drop down to 1%).
You’ll also earn elevated cashback on travel booked through Chase Travel℠, dining (including takeout and delivery), and at drugstores.
Other benefits include:
- No annual fee
- Cellphone protection (up to $800 per claim, $1,000 per year)
- Purchase protection (up to $500 per claim, 120 days)
- Extended warranty
- Zero liability protection
- Trip cancellation/interruption insurance (up to $1,500 per person, $6,000 per trip)
- 24/7 fraud monitoring
- Access to Chase Offers for extra savings
One downside is that you’ll have to activate the rotating category each quarter. This could be a hassle to manage, and if you forget, you’ll only get 1% cashback on your purchases. There’s also a quarterly cap limiting how much you can get back on purchases.
While the Freedom Flex card gives you access to Chase Travel℠, you won’t have the same travel benefits as other premium cards, notably lounge access.
The Chase Freedom Flex® is one of the best rotating category cards, plus rewards on travel, dining, and drugstore purchases. If you don’t mind keeping track of each category, it can be a good card to maximize cashback rewards.
You won’t pay an annual fee, and you’ll still get access to several perks that Chase offers.
Best for Custom Rewards
Bank of America® Customized Cash Rewards Credit Card
Rewards Rate
- 3% cashback on a category of your choice (including online shopping, dining, travel, gas, EV charging stations, drugstores, home improvement or cable, streaming, internet, and phone services) — plus an additional 3% first-year bonus on eligible purchases (up to $2,500 combined bonus category spending each quarter)
- 2% at grocery stores and wholesale clubs (up to $2,500 combined spending in bonus categories each quarter, then 1%)
- 1% on all other purchases
Welcome Offer
Earn $200 cash after spending $1,000 in the first 90 days, plus 6% cashback in the category of your choice for the first year.
Annual Fee
$0
The Bank of America® Customized Cash Rewards Credit Card makes it easy for you to align your rewards with where you spend the most. You can select a 3% cashback category from options like gas/EV charging stations, online shopping, dining, travel, drugstores, or home improvement.
You also earn elevated cashback at grocery stores and wholesale clubs, up to $2,500 per quarter.
Some other benefits of the card include:
- Bonus rewards for Bank of America and Merrill account holders
- No annual fee
- Online rewards calculator
While the Bank of America Customized Cash Rewards Card offers the most flexibility, it has a complicated reward structure to navigate. It also doesn’t come with travel perks or other benefits that you’ll find with other cards.
The ability to earn a higher reward rate on groceries is nice, but be mindful that this higher rate is capped at $2,500 per quarter.
Few beginner credit cards offer high rewards on things like groceries. The Bank of America® Customized Cash Rewards Credit Card gives you greater flexibility over how you earn rewards.
This is a good option for someone who wants to earn cashback on everyday purchases without all the bells and whistles of other types of reward cards.
How To Choose a Cashback Credit Card
Not all cashback cards are created equal. Some will provide better rewards than others. Choosing the right one for you depends on your current spending habits.
Evaluate your spending
Look at how the different cards fit into your existing spending habits. You can do this by categorizing your expenses to see where you’re most likely to earn rewards.
For example, if a large portion of your monthly budget goes to groceries, the Blue Cash Preferred® Card from American Express might be a good fit for you. If you regularly dine out and attend concerts with friends, the would probably suit you better.
Compare reward programs
There are three types of rewards to consider: flat-rate, rotating category, and tiered.
Rotating categories can provide higher rewards in unique categories, but you’ll have to keep track of them and they may not always match your spending interests.
If you’re looking for consistent rewards, look for cards with bonus categories you tend to spend the most in, or a flat-rate cashback card with at least 1.5% back on all spending.
Find a great welcome offer
Many cashback rewards cards come with lucrative welcome bonuses. You can earn a one-time cash bonus by hitting a spending requirement, usually in the first three to six months of opening the account.
This can be a great way to get even more rewards from your card — just make sure you can easily hit the spending requirement in time with your usual spending alone. Spending extra just to earn a cash bonus is generally unwise, especially if you can’t pay it off and will then owe interest on the balance.
Watch out for fees
There are a lot of great cashback credit cards that don’t have an annual fee. But that doesn’t mean all cashback cards are completely fee-free. In addition to annual fees, you’ll want to pay attention to balance transfer fees and foreign transaction fees.
An annual fee is not inherently a bad thing; typically, the cards with the best rewards also come with the highest fees. Do the math to make sure it works for you and your budget before adding a fee-bearing card to your wallet.
Know your style
Remembering rotating categories and keeping track of different tiers of rewards can be a lot of work. If you’re a pretty dynamic spender, then this type of cashback card could be right up your alley.
But if you’re new to cashback credit cards or simply don’t want your wallet to get too busy, look for a competitive flat-rate card or one with consistent tiered rewards. This way you can earn rewards on your spending without having to stay on top of rotating categories or activation deadlines.
Types of Cashback Credit Cards
There are three main types of cashback cards: flat rate, rotating category, and tiered. Choosing the right type of cashback card for you will help you maximize your earnings.
Flat rate
A flat-rate cashback card gives you the same return on your spending no matter what it is. These cards typically earn 1% to 2% cashback. They are generally easier to manage because you know the amount of cashback you’re earning for each purchase.
The downside is that you won’t be able to maximize the amount of cashback you can earn in certain categories, like dining out. Many flat-rate cards don’t charge an annual fee, though, which makes them convenient regardless of how often you use them.
Rotating categories
A cashback card with rotating categories can give you more bang for your buck. Most offer 5% cashback on categories that change each quarter. To earn the full cashback reward, you have to activate the rotating category and use your card to make purchases in that category.
Rotating category cards are a great way to maximize rewards, however, it might only make sense to use the card for certain categories or part of the year.
Tiered
Tiered cards typically come with a flat rate for all purchases and elevated rates for specific fixed categories. For example, you might earn 3% for dining out, 2% for groceries, and 1% for everything else. Some cards even allow you to choose the category that earns the highest tier of rewards.
The downside with tiered cards is that they can be a lot of extra work to manage. You’ll have to pay attention to the reward structure and develop a strategy for how to use the card. This can get complicated if you have multiple cashback cards, all with different ways to earn rewards.
Pros and Cons of Cashback Credit Cards
Whether it’s trips to the grocery store, monthly streaming subscriptions, or tickets to a Taylor Swift concert, the right cashback card can put money back in your wallet. But they’re not without downsides.
Pros
- Money in your pocket: Earn cashback on purchases you were already planning to make.
- Redemption options: You can cash in via statement credits, transferring to shopping partners, or paid out to you via check.
- Sign-up bonuses: Many cashback cards offer additional cash bonuses when you first sign up.
Cons
- Earning limits: Check the fine print to see if there's a limit to how much you can earn.
- Minimal travel rewards: Most cashback cards are focused exclusively on putting cash in your pocket or a credit on your statement, and may not offer travel perks like insurance or lounge access.
Bottom Line: How Do I Pick the Best Cashback Card?
Choosing the best cashback card for you depends on your spending habits. Take a look at your current bank and credit card statements to see which categories you spend the most money in. Then evaluate the cashback cards on the market.
If your goal is to get the most cashback, look for a card with a rotating category that aligns with your spending. If you prefer simplicity, look for a high flat-rate cashback card instead.
Frequently Asked Questions
How can you maximize value from cashback credit cards?
Aside from choosing a card that fits your spending habits, there are other ways to maximize the value you can get from cashback credit cards.
Your credit card can be combined with shopping portals like Rakuten or Capital One Shopping. These sites will give you a percentage of cashback on your purchase just by shopping through their platform. You can earn rewards from your cashback credit card and from the platform you’re shopping on. Depending on the retailer, you could double or even triple your rewards.
What purchases don’t qualify for cashback rewards?
Most regular consumer purchases, like groceries and gas, qualify for cashback rewards. That being said, there are some limitations. You won’t earn cashback for cash advances or balance transfers. Buying cryptocurrency or foreign currency when traveling abroad might also be excluded.
While rewards policies used to vary in providing cashback for spending with a digital wallet, the increased popularity of this payment option means most credit card issuers will offer rewards on eligible spending made through your digital wallet.
What’s the best way to redeem cashback rewards?
There are several different ways to redeem rewards. One of the easiest ways is to opt for a statement credit on your bill. You can use this as a way to reduce the balance you’ll owe on your payment date.
Many offer redemption as a direct deposit to a bank account, a check, gift cards, or directly to a partner site. Unlike credit card points, which can vary based on redemption, most cashback redemption options have the same value.
Do cashback cards actually give you cash?
Kind of, but not really. Instead of earning cash that you can physically put in your wallet, cashback cards generally issue statement credits. These credits can be put toward your account balance to offset purchases.
You can also redeem cashback rewards as cash equivalent purchases. This is common for booking travel. Instead of paying for a flight out of pocket, you can pay using your points instead. You still benefit from purchasing the flight but you’re not paying for it in dollars.
There are some ways you can get cash from your rewards if you want. You may be able to withdraw your cashback rewards from an ATM, a paper check, or transfer to PayPal.
Is cashback from a credit card taxable?
Technically, cashback rewards are not taxable. In order to receive cashback, you have to spend money. This means rewards are considered discounts on pre-existing purchases rather than taxable income.
If there's no minimum spending for a sign-on bonus, any received cash compensation could potentially be taxed as unearned income.
Is 5% cashback on a credit card good?
The average cashback reward on a flat-rate credit card is 1% to 2%. Anything above that is good!
Most rotating category cards offer 5% cashback for specific categories. Some tiered credit cards offer fixed bonus rates of 5% or even 6%. Sync your spending with a 5% reward card to earn more than with a 1% or 2% flat rate card. That said, 5% cashback rates generally have spending caps that limit how much you can earn in that category.
Was there an issue with your flight?
We read the fine print so you don't have to! Take our Flight Rights Quiz to learn more about the compensation the airline may owe you if your flight was delayed or canceled!
