Best cash-back credit cards for September 2024 #CashNews.co

If you want to maximize your spending power, a cash-back credit card can be a helpful financial tool, even with today’s current inflated prices. After all, building credit is integral to your financial journey — and doing so with a cash-back credit card gives you added perks such as rewards, bonus cash back, and redemption options that you might not get with other cards.

To help you find the best cash-back credit card for your wallet, we’ve included plenty of factors to consider, including annual fees, welcome offers, and rewards categories that we believe can offer you the best returns today.

Before applying for a cash-back credit card, familiarize yourself with different categories of cash-back credit cards.

• Flat-rate cash-back cards come at a fixed earning rate, meaning you will always get that amount of cash back as you make purchases.

• There are also tiered cash-back credit cards, which give a different percentage of cash back on different categories of purchases, like groceries or gas.

• And then there are rotating cash-back credit cards, which rotate the categories that get higher cash-back percentages on monthly or quarterly schedules. Whatever card you choose is a personal preference based on your purchasing habits.

Cash-back credit cards are often designed to reward everyday spending. Our list is made up of the cash-back cards we believe can offer maximum savings on the purchases you make most often.

Best cash-back credit cards for September 2024

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Potential annual cash back: $513.33 (after accounting for annual fee)

Why this is the best cash-back credit card for groceries

You’ll be hard-pressed to find a credit card today that can beat the Blue Cash Preferred’s 6% back at U.S. supermarkets. Even with the $6,000 annual cap, that’s a potential $360 back on just your grocery bills each year.

Plus, this card is one of the top options for potential rewards based on our spending calculations, with more than $500 back each year even after accounting for the annual fee (though it’s waived the first year).

Whether you do the monthly shopping for your family, have roommates, or just tend to eat and spend time at home often, you can get a ton of value from this card — as long as you can outpace the annual fee.

Read more: See our picks for the best American Express credit cards

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Potential annual cash back: $447.38

Why this is the best cash-back credit card for restaurants

We like the SavorOne card for restaurants thanks to its 3% rewards rate — unmatched among most cash-back credit cards. But it can be ideal for both nights out and nights in, with other rewards on entertainment spending (including movie theaters and tourist attractions), grocery stores, and streaming subscriptions.

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Potential annual cash back: $406.38

Why this is the best cash-back credit card for gas stations

This card offers among the highest cash-back rates available on gas station spending, with a potential $180 back each year if you meet the spending cap.

But we also love the versatility of the Blue Cash Everyday. It offers rewards at supermarkets, and you can earn 3% back on your online shopping — which may include everything from huge retail sites to small online shops by your favorite sellers. That’s not a common bonus category among other cash-back cards today, and it can offer some major savings for frequent online shoppers.

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Potential annual cash back: $459.84

Why this is the best cash-back credit card for flat cash back

The Citi Double Cash takes our spot for the best flat cash-back card for several reasons. For one, it offers up to 2% cash back on every purchase — which is about as high as you’ll find for flat cash back rates today.

But we also like the structure of this card’s earnings, which encourages you to pay your balances in full and on time each month. You’ll only earn half of your 2% cash back when you make a purchase with your card. The other 1% requires you to pay off the purchase in full.

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Potential annual cash back: $446.32 (based on 2023 categories)

Why this is the best cash-back credit card welcome bonus

The Discover it Cash Back card’s welcome bonus is unique among cash-back cards today — and can potentially be worth much more than other offers. Instead of a specific dollar amount, Discover will make an unlimited cash-back match of all the rewards you earn over your first year. So if you earn the potential $446.32 we predict based on average American spending, you could double that to a total of $892.60 cash back in your first year.

However, it’s important to keep track of bonus categories each quarter to make sure you take advantage of your rotating 5% cash back. Discover doesn’t announce its full annual calendar in advance; categories are typically released the month prior to the start of a new quarter. It also pays to activate early. If you wait until the quarter’s already started, you’ll only earn 5% for qualifying purchases made after you activate.

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Potential annual cash back: $553.32 (after annual fee; assuming groceries bought at retailers included in 6% category)

Why this is the best cash-back credit card for customization

If you use the Shopper Cash Rewards card from U.S. Bank wisely, it has the potential to offer the most value of any cash-back credit cards on our list — but you’ll also need to put in some extra work to maximize this card.

Based on average spending data, we assume that most people spend the greatest amount each month on groceries, for example. With this card, you can earn as much as 6% back on groceries if you buy them at Target or Walmart each month (two retailers typically excluded from supermarket rewards categories).

But the benefit of customizable rewards is that you can switch things up when necessary. Maybe you’re planning a home improvement project and want to purchase new appliances from Home Depot or Lowe’s — you can change one of your choice 6% retailers for the quarter to maximize your current spending.

Plus, after you max out the 6% and 3% quarterly spending caps, this card offers even more as a flat cash-back card, with a minimum 1.5% cash back on every purchase.

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Potential annual cash back: $402.22 (based on 2023 categories)

Why this is the best cash-back credit card for rotating rewards

The Chase Freedom Flex offers a wide range of rotating categories each quarter. Over the past year, these have ranged from specific retailers like Target and Amazon to broader everyday spending like wholesale clubs, fitness clubs and gym memberships, and more. We also like this card for its ongoing cash-back rates on dining, at drugstores, and on Chase Travel.

Plus, it makes a smart pairing for cardholders who have other Chase cards in their wallets. You can transfer the cash rewards you earn as Chase Ultimate Rewards points to either of the Chase Sapphire cards and earn their boosted rewards rates when you redeem for travel. If you’re already using a Chase travel credit card, the Freedom Flex can help expand your rewards categories and let you rack up points even faster.

All information about Chase Freedom Flex has been collected independently by Yahoo Finance. Chase Freedom Flex is no longer available through Yahoo Finance.

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Potential annual cash back: $344.88

Why this is the best cash-back credit card for building credit

If you’re trying to build your credit history or rebuild your score, you probably know how difficult it can be to qualify for cards with any rewards at all — which is why we like the Quicksilver Secured for cardholders looking to build credit while still earning cash rewards.

Not only can you get 1.5% back on every purchase from the start, but Capital One offers a clear path towards graduating to an unsecured version of the card and a higher credit line. Upon opening, you’ll need to put down at least a $200 security deposit, which will act as your credit line. However, you’ll be automatically considered for a higher credit line after a minimum of six months.

You can earn your deposit back and potentially upgrade to the unsecured Quicksilver card with responsible use over time.

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More cash-back cards to consider

The Active Cash Card is another 2% flat cash-back card that can make a great option for a wide range of cardholders. This card has no annual fee, and a welcome offer of $200 after you spend $500 within the first three months. There’s also an introductory 0% APR for 12 months on purchases and balance transfers, after which the standard APR applies.

There are few other ongoing rewards or benefits, but 2% cash back alone is at the high end of flat cash-back rewards you’ll find among any card today.

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For the most part, we didn’t include co-branded cash-back cards on this list — but this card is an exceptionally versatile version of a retail card. For frequent Amazon shoppers, the Prime Visa card can offer many savings and cash back in other everyday categories. There’s no annual fee, but you need a Prime membership ($14.99 per month or $139 per year). Here are the rewards categories:

• 5% cash back at Amazon.com, Amazon Fresh, Whole Foods Market, and on Chase Travel purchases with an eligible Prime membership

• 2% cash back at gas stations, restaurants, and on local transit and commuting (including rideshare)

• 1% cash back on all other spending

After you sign up, you can get an instant $100 Amazon gift card. Throughout the year, you’ll also earn a boosted 10% back on select products and categories when you shop with Amazon.

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The Chase Freedom Unlimited is another no-annual-fee card that combines rotating categories with flat cash back for a solid potential max value. You’ll earn:

• 5% cash back on travel purchased through Chase Travel

• 3% cash back on dining and drugstore purchases

• 1.5% cash back on all other spending

New cardholders can earn an extra 1.5% cash back (up to $300) on all purchases for the first year (up to $20,000 in spending). And like the Freedom Flex, this card also pairs well with Chase’s travel card options. You can transfer your cash back as points between different card accounts to get even more value when you redeem for travel.

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Types of cash-back credit cards

Cash-back credit cards can carry a wide range of rewards, but they tend to fall in one of three categories.

Flat cash back

Flat cash-back cards earn a standard amount of cash back on everything. There’s no need to keep track of bonus categories or percentages, because you’ll get the exact same amount back no matter what type of purchase you make.

Flat cash-back cards usually offer 1.5% or 2% cash back on every purchase.

This type of card may be best for someone who doesn’t have a single top spending category each month or iqs looking for an easy way to earn rewards without putting too much thought into maximization.

Tiered cash back

Tiered cash-back cards may be what you imagine when you think of a cash-back credit card. These cards earn cash back at different rates across different spending categories. Typically, you’ll see a tiered cash-back card with 2-3 eligible bonus categories that earn anywhere from 2%-6% cash back.

Some tiered cash-back cards — especially those with very high 5%-6% bonus categories — may limit earnings to purchases under a certain spending cap (monthly, quarterly, or annually). For example, you might earn 5% back on dining with a cash-back card , but only on the first $1,500 you spend at restaurants each quarter.

Tiered cash-back cards can be great for maximizing your spending if you choose a card with great rewards where you spend most. Just make sure you understand your card’s rewards structure, as well as its limitations, before you start spending.

Rotating cash back

Rotating cash-back cards are unique among rewards credit cards, since your top rewards categories are constantly changing. These cards generally earn 5% cash back each quarter in specific rotating categories, up to certain limits.

The rotating categories can differ year-to-year, but they tend to center around everyday spending. You may, for instance, see categories like groceries, gas, and dining, as well as specific retailers like Target, Walmart, and Amazon.

The rewards caps are important to remember with this type of card. If you spend much more than the quarterly cap (often around $1,500), you may not get the best value for your spending. You’ll also need to keep up with and activate the new categories each time they roll around.

How to choose a cash-back card

Before you open a cash-back credit card, compare the details below to your goals, budget, and what you’re looking for in your new card.

Annual fee

Many cash-back cards charge no annual fee. However, if you are willing to pay an annual fee for your cash-back card, you may get boosted cash-back rates in return.

Whether an annual fee is worth it for you depends on your individual spending and the value you’ll get out of a card. When we calculated average cash rewards earnings, all the cards with annual fees far outpaced their annual fees in rewards value. But if you don’t spend as much as the average across bonus categories, that may not be true for you.

The good news is that many of the best cash-back cards available charge no annual fee at all — making it easy to find one that works with any budget.

Welcome offer

Cash-back credit cards often offer cash sign-up bonuses after you meet a spending threshold within a certain amount of time after opening your account.

You’ll most frequently see bonuses for $150 or $200 after spending a minimum of $500 to $2,000 on your card within about three months of account opening. Like with any new card, avoid spending more than you usually would just to meet the bonus threshold. The potential interest charges could quickly eliminate any added value if you have to carry a balance.

In addition to cash welcome offers, many cash-back cards also have introductory 0% APR offers on new purchases (and some on balance transfers). You can earn 0% on purchases you make with your card for anywhere from 6 to 18 months, after which any remaining balance will take on your ongoing variable interest rate.

Cash-back rewards categories

Perhaps the most important thing to factor into your cash-back card choice is the categories in which you’ll earn rewards. Here are a few common bonus categories offered today:

Review your receipts and statements from the past several months to get an idea of where you spend most. Do you tend to eat at restaurants or order takeout most nights? Or do you stick to a weekly grocery shop for most of your meals? Do you have a car that takes a lot of miles on for your weekly commute? Or do you rely more on public transportation, supplemented by Uber and Lyft rides?

Knowing the details of your own spending habits can help you make the best choice of rewards. Don’t forget about flat cash-back cards and cards with rotating categories. These can be among the most lucrative options, especially if your spending falls outside common categories.

Benefits and more

You won’t find as many added benefits and perks from cash-back cards as you will on travel and rewards credit cards. But some cash-back options do offer extra benefits that can help you save even more throughout the year.

Often, cash-back credit card benefits come from brands that partner with credit card issuers. For example, you may get a small monthly credit toward a subscription or membership. Alternatively, you might be eligible for a few months’ trial membership for a service.

If you don’t already use the services these benefits help subsidize, it could cost you more money over time. But if you are already a member or subscriber, they may give you an extra savings boost over time.

How to make the most of cash back

Here are a few things to consider while you earn and redeem cash-back rewards:

Track your rewards

Make sure you keep regular track of the cash rewards you earn. While they probably won’t expire (unless you close your account), you don’t want to let them sit unused for too long, either.

Consider redeeming your cash back every few months, unless you’re saving for a big redemption. If your rewards are simply sitting in your account unused, you’re not gaining any value from them. Unlike a savings account, for example, they don’t earn any interest — so you could even lose potential value if you account for inflation.

Keep in mind, some issuers have thresholds (like a $25 minimum) you must meet before you can redeem. You may even be able to set up automatic redemptions once you meet a certain amount of rewards earned

Combine with other cards

Cash-back cards can be ideal for pairing with other cash-back cards or travel rewards cards to maximize your earnings.

For example, say you already have a travel card you use to earn bonus points on flights, hotels, and rental cars when you travel. You can also open a cash-back card for savings on dining at restaurants, your favorite streaming services, and supermarket shopping. Now, between both cards, you can optimize the majority of your spending while traveling and at home.

If you prefer the simplicity of only cash back, you could do something similar with two cash-back cards. Maybe, instead, you already have a cash-back card that earns top rewards at supermarkets and gas stations, but you only get 1% back elsewhere. A flat cash-back card that earns 2% on every purchase could be a good option to help increase your baseline rewards every time you swipe.

Strategizing card use like this can take some time, but it will help you earn a lot higher cash-back value in the long run.

Just remember to pay your balance off in full and on time each month to get your maximum value. Otherwise, the high interest rates these cards carry could wipe out the amount you earn in rewards — and leave you with mounting debt balances.

Pros and cons of cash-back credit cards

Pros

Among different types of reward cards, cash-back credit cards can be some of the simplest to use. You don’t have to worry about converting points to currency or maximizing redemptions. Instead, you can simply redeem the cash back you earn for statement credits, a deposit into your bank account, or a check.

Cash-back cards are also perfect for saving on everyday purchases. If you don’t travel much, you may find many rewards cards don’t offer a lot of value for you. But cash-back cards tend to reward purchases in essential categories for many Americans: gas, groceries, streaming services, and more.

Despite their simplicity, cash-back cards can also be powerful tools. You can get hundreds of dollars in value each year just by spending the amount normally within your budget on a cash-back card. And the extra features — such as an intro 0% APR on new purchases or balance transfers, purchase protections, and more — can offer a lot of benefits and protections to help make the most of your spending.

Cons

Cash-back cards may hold a lot of value, but that doesn’t mean they’re for everyone. Like any type of rewards card, you shouldn’t opt for a cash-back card if you’re going to carry a balance. These cards can charge very high variable APRs, and any revolving balance on your account can quickly turn into high-interest debts. If you want to get any return on your spending with cash back, avoiding taking on debt with your card is important.

In some cases, there may be better options than cash-back cards for your spending. Spending caps for rewards earnings can hinder some people with very large monthly budgets, for example. And for frequent travelers who spend a lot of time on the go, cash-back cards don’t offer nearly as many perks as some travel rewards cards. Before you choose, compare your individual spending and budget to multiple card options to find the best one for you.

Should you open a cash-back credit card?

As long as you pay your balance in full and on time each month, we believe a cash-back card can play an important role in nearly every shopper’s wallet — whether you’re looking to supplement the other cards in your wallet, maximize your everyday spending, or begin building credit.

Just make sure you take the time to find the right cash-back option for you. Between flat, rotating, and tiered cash rewards (and cards that offer any combination of the three), there are plenty of options that may be better suited for your top spending categories than others.

Cash-back credit card FAQs

What credit score do you need for a cash-back credit card?

Many cash-back cards require at least good credit, or a FICO Score of at least 670, for approval. Some cash-back cards are designed for cardholders who are building credit, but they may not offer as robust rewards as others.

Before you apply, consider seeing whether you’re pre-approved for a card, so you don’t undergo a hard credit inquiry only to not get approved.

How do cash-back cards work?

Cash-back credit cards work like any other credit card. What’s unique about them is the potential to earn rewards. When you charge a purchase to your cash-back card, you’ll receive a percentage of each purchase back. As those amounts add up, you can redeem them for statement credits toward your card balance or physical cash. You may get boosted cash back percentages on specific purchases depending on the card you have.

Cash-back cards can offer a simpler rewards structure than some other points-and-miles rewards programs, which make them popular among cardholders who want to maximize their spending without too much extra work.

How do I get the best cash-back rewards?

The best cash-back rewards for you will depend on your spending habits and how you use your cash-back credit card. If the majority of your budget is focused in a few different categories (buying groceries, filling up your car’s gas tank), you’ll probably get the best value from a card with higher earnings in those categories. On the other hand, if you don’t want to worry about categories or when to use your card for maximum value, you may find a flat cash-back card that earns 1.5% or 2% back on every purchase will be a much better value for you.

Before you apply for a cash-back card, look at your overall spending and budget — and get realistic about how much you’re willing to maximize different spending categories.

Does cash back expire?

In many cases, the cash back you earn does not expire until your account is closed. However, individual issuers may have different standards for how long your cash back lasts. Always make sure to read your card agreement for expiration dates that may apply for your cash-back card.

What doesn’t count toward cash back?

Most cash-back cards offer at least 1% back on every purchase — but there are some transactions you can make that may not qualify. For example, issuers often exclude lottery ticket or gambling chip purchases from earning cash back, as well as items you return or unauthorized spending. You also won’t earn cash back for balance transfers, cash advances, and other types of non-purchase transactions.

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Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.