The Best Cash Back Credit Cards of 2012

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Cash back credit cards are one of the best ways to put extra money in your pocket. With the top cash rewards giving you up to 5% back on every purchase, and many offering bonus cash for new card members, the time is never been better to get a credit card that pays you to use the card. With some of the best cash back credit cards, you can even get 0% on purchases or balance transfers, in addition to earning a percentage back on every purchase.

As the offers continue to improve, cash back credit cards are becoming more lucrative and currently, there are close to a dozen solid cash back credit card offers.  Should you find a card you feel belongs on this list, let us know, and we’ll add it!

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Chase Freedom® Visa – $200 Bonus Cash Back – The Chase Freedom Visa – $200 Bonus Cash Back offers a flat 1% cash back on all purchases with the opportunity to earn 5% cash back on rotating categories every three months. If you’re a user of the Chase merchant website, you can also earn an additional 10% cash back when you shop online at select merchants through Chase. The Chase Freedom Visa – $200 Bonus Cash Back makes its true mark by offering consumers a $200 cash back bonus after spending just $500 in purchases during the first three months.  All of these rewards come to you free of charge, as this card carries no annual fee.

Blue Cash Everyday℠ from American Express – When it comes to cash back offers, the Blue Cash Everyday from American Express is without doubt one of the best cards you’ll find. The card offers unlimited cash back of 3% at supermarkets, 2% at gas stations and department stores, and 1% on all other eligible purchases. The card also offers 0% on purchases for 12 months, depending on your credit. And you can even get a $25 bonus each time you refer a friend or family member who gets the card, as well as $100 cash back bonus after spending $1,000 in eligible purchases in the first 3 months.

True Earnings® Card from Costco and American Express – The True Earnings Card from Costco and American Express made the top of our list because it’s the only card that offers higher than 2% cash back on a consistent basis.  On all of your gasoline purchases made during the year, you’ll earn 3% cash back.  One slight restriction to mention on the gas purchases, your 3% is only issued up to the first $3,000 in gas purchases (1% thereafter).  If you break it down even further, that’s roughly $60 in gasoline per week which is more than enough for the average American.

On travel and restaurant purchases you’ll earn 2% cash back and 1% cash back on everything else, including at Costco. Finding credit cards that provide 1% cash back on wholesale or club stores like Costco is difficult, further enhancing the quality of this card.  Signing up for the True Earnings Card from Costco and American Express gives you a 0% APR on purchases for the first six months and no annual fee, if you’ve paid for a Costco membership.

Discover® More® Card – One of the oldest and unchanged cash back offers around, the Discover More Card offers 0.25% cash back on your first $3,000 in purchases and 1% thereafter.  You are given the opportunity to earn 5% cash back on rotating categories, similar to what the Chase Freedom Visa provides.  The Discover More Card comes with a 0% APR intro offer on balance transfers for 15 months and on purchases for 15 months and carries no annual fee.

Citi® Dividend Platinum Select® Visa® Card – $100 Cash Back – Citibank’s best cash back credit card, the Citi Dividend Platinum Select Visa Card – $100 Cash Back offers 1% cash back on all purchases and 5% cash back on rotating categories month to month with $100 cash back after spending $500 during the first three months. For the months of January, February and March, 5% cash back is given on Fitness club, health care and utilities. In addition to the great cash back offer, the Citi Dividend Platinum Select Visa Card – $100 Cash Back also offers 0% APR on balance transfers and purchases for the first 12  months and carries no annual fee.

PenFed Visa Platinum Cashback Rewards Card – Without any tiers or confusing cash back arrangements the PenFed Visa Platinum Cashback Rewards Card offers 5% cash back at gas stations, 2% cash back on dining purchases (July 1, 2011 – Sept. 30, 2011) and 1% cash back on everything else.  The card also carries a low interest rate and no annual fee. The catch of course, is that you have to be a member of the PenFed Credit Union to be approved. This means you must be a United States Government employee, member of the United States Military and Uniformed Services, employee or volunteer of the American Red Cross, member of the National Military Family Association, or a family member/housemate of a current PenFed member.

Bank of America® Accelerated Rewards™ American Express® Card – The Bank of America Accelerated Rewards American Express Card allows cardholders to earn 1.25% cash back on retail purchases. No tiers or limits to speak of and all new accounts will earn a $50 bonus after spending $50. Another $25 can be earned by signing up at www.AmexNetwork.com/get25 prior to using your Card for a qualifying purchase at either Target, Costco or Staples^, bringing the total cash reward to $75. With no annual fee and an intro rate for 12 billing cycles on purchases and for any balance transfers made within 60 days of opening your account, the Bank of America Accelerated Rewards American Express Card is an excellent option.

Best Cash Back Debit Card

PerkStreet Financial℠ MasterCard® Debit Card – PerkStreet just announced a debit card / checking account where all non-PIN purchases will earn 2% cash back.  As if that wasn’t enough, 5% cash back can be obtained every month on rotating categories, similar to the Chase Freedom Visa and Discover More Card.  To obtain the 2% cash back, a $5,000 starting day’s balance is required and I haven’t even started talking about the checking account.  Free checks, online bill pay and no maintenance fees if the account remains active adds to the attractiveness of the PerkStreet Financial MasterCard Debit Card.

Published or updated February 1, 2012.