The Best Cash Back Credit Cards of 2023

Cash back credit cards offer flexible rewards for spending you are already doing. If you have a hard time redeeming travel rewards you’ll love cash back credit cards.

Best Cash Back Credit Cards

1. Chase Freedom Unlimited® Credit Card

The Chase Freedom Unlimited® earns 1.5% on everyday spending plus up to 5% on bonus categories. All for no annual fee

Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year).

There is also an introductory period for purchases and balance transfers. You’ll get 0% APR for 15 Months from account opening on both purchases and balance transfers. The regular rate applies after that and there is a balance transfer fee.

Ongoing Rewards

You’ll also earn cash back with your regular spending. You’ll earn:

5% cash back on travel purchased through Chase Ultimate Rewards®
3% cash back at restaurants
3% cash back at drugstores
1.5% on everything else

Other Perks

Purchase Protection will cover your items for 120 days after purchase from damage or theft. You can be reimbursed up to $500 per claim. Claims are limited to $50,000 per account.

Three months of complementary DashPass, from DoorDash if you sign up before December 31st, 2024. You’ll receive unlimited deliveries for $0 delivery fee and reduced service fees. Afterwards, you will be automatically enrolled in DashPass for 50% off for the next nine months.

Three months of complementary Instacart+ if you sign up before July 31st, 2024. This gives you unlimited deliveries for $0 delivery fee and reduced service fees. You will also receive $10 quarterly statement credits for your Instacart+ purchases through July 31st, 2024. Afterwards, you will be automatically enrolled in an annual membership.

Extended Warranty Protection will extend the manufacturer’s warranties that are three years or less by an additional year.

Travel Insurance and Protections

Trip Cancellation/Interruption Insurance will reimburse you for non-refundable costs up to $1,500 per person and $6,000 per trip if your trip is cancelled or cut short by illness, severe weather, or other covered situations.

Auto Rental Collision Damage Waiver is available but secondary. This means you will first have to make a claim on your personal car insurance.

Travel and Emergency Assistance is available if you are traveling and have an emergency.

2. Capital One Quicksilver Cash Rewards Credit Card

The Capital One Quicksilver Cash Rewards Credit Card earns 1.5% on everyday spending and up to 5% cash back on hotels and rental cards booked through Capital One Travel. No annual fee.

Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.

You will also get a 0% intro APR for 15 months on purchases and balance transfers. After that the standard APR is 19.74% - 29.74% (Variable).

Ongoing Rewards

You’ll earn 1.5% cash back on all purchases. If you are looking for an easy to manage cash back card, this is it.

Also get 5% cash back on hotels and rental cars booked through Capital One Travel.

Cash back can be redeemed as a statement credit or you can be mailed a check. If you link your card to Amazon or PayPal you can use your cash back rewards directly on those platforms.

Other Perks

Free Uber One for up to six months. Offer ends 11/14/2024. Uber One gives you 5% off Uber rides. You’ll also get 10% off orders and $0 delivery fees from Uber Eats.

Extended Warranty Protection will extend the manufacturer’s warranty on eligible items purchased with your card.

Master RoadAssist® covers you have a covered accident while traveling. You must have purchased your fare with your Capital One Quicksilver Cash Rewards Credit Card.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

3. Blue Cash Preferred® Card From American Express

See Rates & Fees.

The Blue Cash Preferred® Card From American Express is an excellent way to earn cash back on your everyday expenses. In fact, unlike most cards weighted more towards dining, entertainment, and travel, this one is weighted towards gas and groceries.

There is an annual fee of $95 ($0 intro annual fee in first year).

Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.

You will also get a 0% APR on purchases and balance transfers for the first 12 Months. After that and APR of 18.74% - 29.74% Variable applies.

If you use the “Plan It®” feature, which allows you to break up large purchases into monthly installments, you will receive $0 in fees for the first 12 months from account opening. After that, new plans will have a 1.33% monthly fee.

Ongoing Rewards

You’ll also earn cash back on your everyday spending.

6% cash back at U.S. supermarkets, up to $6,000 per year in purchases
6% cash back on select U.S. streaming subscriptions
3% cash back on transit, which includes gas, taxis, rideshare, parking, tolls, trains, buses, and more.
1% cash back on everything else

Cash back is redeemed as a statement credit.

Pay It Plan It®

The American Express Pay It Plan It® feature is a payment option that allows cardholders choose to pay off specific purchases over a fixed period of time, typically ranging from three to 24 months, with a fixed monthly payment and a fixed interest rate.

If you are a user of any Buy Now Pay Later programs, this is American Express’ version and you can use it right with your card. Plan It® allows cardholders to select eligible transactions and then split them into smaller payments with a fixed monthly fee. This is an alternative to paying the full balance, and it can be helpful for budgeting or managing large purchases over time.

Pay It®, on the other hand, is a separate feature that allows cardholders to make quick payments towards their account balance. With Pay It®, cardholders can make a payment towards their account balance, usually equal to or less than their minimum payment, directly from their mobile device or through the Amex app. This can be a convenient way to manage payments and avoid late fees or interest charges.

Other Perks

You’ll get a $7 monthly credit on an eligible Disney Bundle subscription if you spend $12.99 or more. (This includes Disney+, Hulu, and ESPN+). That equals $84 per year in credits, which almost covers the entire annual fee. Enrollment is required.

Return Protection will reimburse you up to $300 per item if a seller will not take an item back. Protection covers the first 90 days of owning an item that was purchased on your Blue Cash Preferred® Card From American Express. Claims are limited to $1,000 per year per card.

Travel Insurance and Protections

Car Rental Loss and Damage Insurance is available but it is secondary insurance. This means that you will first make a claim on your personal car insurance. Rental car insurance from Amex will only kick in once you’ve reached the limits on the primary insurance. You must decline the insurance provided by the rental car company.

Global Assist® Hotline is available if you are more than 100 miles from home and need assistance. This hotline can help with emergency cash, missing luggage assistance, medical referrals, and more.

4. Blue Cash Everyday® Card from American Express

See Rates & Fees.

You’ll get 1% cash back on your everyday spending and up to 3% in bonus categories such as gas, groceries, and online shopping. All this for no annual fee.

Welcome Bonus

Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.

You’ll also receive an introductory period of 0% APR on purchases and balance transfers for the first 15 Months. After that and APR of 18.74% - 29.74% Variable applies.

If you use the “Plan It®” feature, which allows you to break up large purchases into monthly installments, you will receive $0 in fees for the first 15 months from account opening. After that, new plans will have a 1.33% monthly fee.

Ongoing Rewards

You’ll also receive cash back on your everyday spending. You’ll get:

3% cash back at US supermarkets, up to $6,000 a year in spending
3% cash back on US online retail purchases, up to $6,000 per year in spending
3% cash back at US gas stations, up to $6,000 per year in spending
1% on all eligible purchases

Cash back can be redeemed as a statement credit.

Other Perks

You’ll also get a $15 per month Home Chef credit if you purchase Home Chef meals online at Homechef.com. That equals $180 per year in credits.

5. Petal® 2 "Cash Back, No Fees" Visa® Credit Card

What’s different about the Petal® 2 “Cash Back, No Fees” Visa® Credit Card is that it doesn’t require perfect credit. Typically, you need excellent credit to get a cash back credit card, but this card offers cash back even if you are still building your credit. In fact, there’s no credit check or security deposit required. And there’s no annual fee.

There’s no signup bonus for this card.

Ongoing Rewards

Petal® does their ongoing rewards a little differently than other credit cards. There are no bonus categories, but you’ll start out earning 1% cash back on all your purchases. Make your payment on time for six months and you’ll start earning 1.25% cash back. Keep making timely payments and after another six months you’ll start earning 1.5% cash back.

What is a Cash Back Credit Card?

A cash back credit card is a type of rewards credit card that offers cash rewards for making purchases with the card.

With a cash back credit card, a percentage of the purchase amount is credited back to the cardholder’s account as a cash reward. The cash back rewards can typically be redeemed as a statement credit, a deposit to the cardholder’s bank account, or as a check. Cash back credit cards may offer a flat rate of cash back for all purchases, or higher cash back rates for specific categories of spending, such as groceries or gas. Some cash back credit cards also offer sign-up bonuses and other perks, such as no annual fee or zero percent introductory APR periods.

How Does Cash Back Work on a Credit Card?

Cash back on a credit card works by providing a percentage of the amount spent on the card back to the cardholder as a reward. This percentage can vary depending on the credit card and the spending category. For example, a card may offer 1% cash back on all purchases, but 5% cash back on groceries and gas.

The cash back rewards are usually accumulated over a period of time and can be redeemed in different ways, such as as a statement credit, a deposit into the cardholder’s bank account, or a check. Some cash back credit cards may have a minimum threshold for redemption, such as $25 or $50.

To earn cash back rewards, the cardholder needs to make purchases with the cash back credit card. The cash back is then automatically credited to their account based on the percentage earned for each purchase. To maximize cash back earnings, cardholders can use their credit card for everyday purchases, such as groceries, gas, and dining out.

It’s important to note that some cash back credit cards may have restrictions or limitations on earning and redeeming rewards, such as expiration dates or spending caps. It’s important to read the terms and conditions of the credit card before applying to fully understand how the cash back rewards program works.

Types of Cash Back Credit Cards

There are several types of cash back credit cards available. Here are some of the most common:

Flat-rate cash back credit cards: These cards offer a flat percentage of cash back on all purchases made with the card, typically ranging from 1% to 2%. These cards are a good option for people who want to earn cash back on all of their purchases without having to keep track of bonus categories.
Tiered cash back credit cards: These cards offer different rates of cash back depending on the category of spending. For example, a card may offer 3% cash back on gas and 2% cash back on groceries, but only 1% cash back on all other purchases.
Rotating category cash back credit cards: These cards offer bonus cash back in rotating categories throughout the year, typically every three months. For example, a card may offer 5% cash back on dining and entertainment from January to March, and then switch to 5% cash back on groceries from April to June.
Sign-up bonus cash back credit cards: These cards offer a large cash back bonus when you meet certain spending requirements within a specific time frame, such as spending $3,000 within the first three months of opening the card.
Specialty cash back credit cards: These cards offer cash back on specific purchases or services, such as travel or gas. They may also offer additional benefits, such as airline miles or hotel rewards.

Pros and Cons of Using Cash Back Credit Cards

Cash back credit cards offer several benefits, but there are also some potential drawbacks to consider. Here are some of the pros and cons of using cash back credit cards:

Pros:

Rewards: Cash back credit cards provide an opportunity to earn rewards for purchases you are already making, which can be a great way to save money or earn cash.
Flexibility: Cash back rewards can typically be redeemed in multiple ways, such as statement credits or cash deposits, giving you flexibility in how you use your rewards.
Sign-up bonuses: Some cash back credit cards offer sign-up bonuses, which can provide a large amount of cash back or rewards for meeting certain spending requirements.
Promotional offers: Cash back credit cards may offer promotional offers, such as 0% introductory APR periods, which can be beneficial for people who want to make large purchases and pay them off over time.

Cons:

High interest rates: Cash back credit cards often come with higher interest rates compared to other credit cards, which can offset the value of rewards earned if you carry a balance.
Spending temptation: Cash back credit cards may tempt people to overspend in order to earn more rewards, which can lead to debt and financial problems.

It’s important to carefully consider these pros and cons when deciding whether or not to use a cash back credit card, and to choose a card that aligns with your spending habits and financial goals.

How to Find the Best Cash Back Credit Card for You

When looking for the best cash back credit card for you, there are several factors to consider. Here are some tips to help you find the right card:

Evaluate your spending habits: Look at your current spending habits and identify the categories where you spend the most money. This can help you choose a card that offers the highest cash back rewards for your biggest expenses.
Consider the cash back rate: Look for a card that offers a high cash back rate in the categories where you spend the most money. Consider both flat-rate and tiered cash back credit cards to find the best fit.
Check for sign-up bonuses: Look for cards that offer sign-up bonuses that can help boost your rewards earnings. Make sure you understand the requirements to earn the bonus and whether it’s worth the effort.
Review redemption options: Make sure the card you choose offers redemption options that align with your preferences. For example, if you prefer to receive cash back, choose a card that offers statement credits or direct deposits.
Consider annual fees and other costs: Look for cards with no annual fee or with an annual fee that is offset by the cash back rewards you’ll earn. Also, consider other costs such as foreign transaction fees, balance transfer fees, and late payment fees.
Check for additional perks: Some cash back credit cards offer additional perks, such as travel insurance or purchase protection. Consider these perks when choosing a card.
Compare multiple cards: Finally, compare multiple cash back credit cards to find the one that offers the best rewards program, fits your spending habits, and meets your financial needs.

By considering these factors, you can find the best cash back credit card for your specific situation and maximize your rewards earnings.

How to Make the Most of Your Cash Back Credit Card

If you have a cash back credit card, there are several strategies you can use to make the most of your rewards:

Choose the right card: Make sure you have a cash back credit card that matches your spending habits. Look for a card that offers bonus cash back in categories where you spend the most, such as groceries, gas, or dining out.
Pay your balance in full each month: To avoid paying interest charges, make sure you pay your credit card bill in full each month. This will also help you avoid the temptation to overspend and negate the benefits of your cash back rewards.
Maximize bonus categories: If your cash back card offers bonus cash back in certain categories, be sure to take advantage of those offers by using your card for those purchases.
Use your card for everyday expenses: Use your cash back credit card for everyday purchases, such as groceries, gas, and utility bills. This will help you accumulate cash back rewards quickly.
Redeem your rewards strategically: Consider redeeming your rewards for statement credits or bank deposits, rather than merchandise or gift cards, to maximize their value. Additionally, some cash back credit cards may offer bonuses for redeeming rewards in certain ways, so be sure to check for those opportunities.

By following these tips, you can make the most of your cash back credit card and earn rewards for your everyday spending.

Do Cash Back Cards Actually Give You Cash?

Yes and no. It’s not cash, as in $100 bills - but it is money, vs say, travel rewards or gift cards. With a cash back credit card, you earn a percentage of your purchases back in the form of cash rewards. This can typically be redeemed for a statement credit, a deposit into your bank account, or a physical check mailed to you.

The exact redemption options and procedures will depend on the specific cash back credit card you have, so it’s important to read the card’s terms and conditions to understand how the rewards program works. Additionally, some cash back credit cards may have minimum redemption thresholds or restrictions on when you can redeem your rewards.

Is Cash Back from a Credit Card Taxable

In most cases, cash back rewards from a credit card are not taxable. The IRS considers credit card rewards to be rebates or discounts on purchases, rather than taxable income. This means that you typically don’t need to report cash back rewards as income on your tax return.

However, there are some exceptions. For example, if you receive cash back rewards in exchange for opening a new credit card account, the issuer may report the value of the reward to the IRS as taxable income. Additionally, if you earn rewards through business purchases, the IRS may consider those rewards to be taxable income for your business.

It’s always a good idea to consult a tax professional if you’re unsure about how to report credit card rewards on your tax return.

Why Do Credit Cards Give Cash Back

Credit card companies offer cash back rewards as a way to incentivize customers to use their credit cards more frequently and to attract new customers. By offering cash back, credit card companies hope to encourage customers to spend more money on their credit cards, which in turn generates more revenue for the credit card issuer through transaction fees and interest charges.

Additionally, cash back rewards can be a way for credit card companies to differentiate themselves from competitors and to build customer loyalty. Customers who feel like they’re getting something in return for using their credit card may be more likely to continue using that card and to recommend it to others.

Overall, offering cash back rewards can be a win-win for credit card companies and customers. Customers can earn rewards for their purchases, while credit card companies can increase their revenue and customer loyalty.