Which Cash Back Cards Are Best?

Why Use a Cashback Card?

Cashback cards are very attractive to an assortment of cardholders. This is because, depending on what type of cashback card you are using, you can earn between 1% and 5% of cashback on the purchases you make.

Types of Cash Back Cards

The two main categories of cashback cards are flat-rate cards and bonus-reward cards. Each has its own set of perks. The flat-rate cards offer their cardholders a set amount of cashback on a permanent set of categories, making it simple to stay informed on how much cashback they can earn at all times. The bonus-rewards cards have rotating categories where certain purchases, such as gas and restaurants, will earn the cardholder more cashback one quarter, and then they will switch to a different category.

Depending on the type of shopper you are, one card may be a better fit for you and your purchasing needs. We will cover the best cashback cards in each category to ensure an effortless process for you.

Bonus Rewards Best Cashback Card

Our pick for the best cashback bonus-rewards card of 2020 is the Discover It Cash Back card. Discover offers a generous deal of 5% cash back on rotating categories for up to $1,500 quarterly. Not only is 5% on the higher end of cashback cards, but the rotating categories are in places people often spend their money already. This makes it extremely easy to maximize the cash back you receive.

Additionally, this card provides these benefits at no annual cost to the cardholder. This means that as the cardholder, you will be earning extra cash at no additional cost to you, making this card a very attractive choice for many people.

Flat Rate Best Cashback Card

If you prefer to avoid the complication of rotating categories, we recommend the Citi Double Cash card. This card will allow cardholders to gain 2% cashback on all purchases- 1% when they purchase something, and another 1% when they pay it off. The good news does not end there. Cardholders will also benefit from 0% APR for the first 18 months on balance transfers. That is a very lengthy intro APR offer, and this offer, paired with a $0 annual fee, makes this card a solid choice for all cardholders.

Additionally, if neither of those cards is the right fit for you, we also recommend the Chase Freedom Unlimited card. While there is a slightly lower cashback offer of 1.5% on all purchases, this card also provides a welcome bonus. If cardholders spend $500 within the first 3 months, they will receive a $200 bonus. Not only is this a low spending benchmark, making it relatively easy to earn this bonus, but this card also lacks an annual fee. Cardholders will receive more money than they have to spend on fees from using this card, making it a great choice.

Bottom Line

There are many other cash back cards that may fit your specific needs, but overall, these cards highlighted above offer the highest cashback rates at the lowest cost to the cardholder.