{"id":3883,"date":"2026-01-18T06:52:57","date_gmt":"2026-01-18T06:52:57","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/the-best-cash-back-credit-cards-for-january-2026\/"},"modified":"2026-01-18T06:52:57","modified_gmt":"2026-01-18T06:52:57","slug":"the-best-cash-back-credit-cards-for-january-2026","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/the-best-cash-back-credit-cards-for-january-2026\/","title":{"rendered":"The best cash-back credit cards for January 2026"},"content":{"rendered":"
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<\/div>\n<\/div>\n<\/figure>\n\n
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Annual fee<\/p>\n
$0<\/p>\n<\/li>\n
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Welcome offer<\/p>\n
Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening<\/p>\n<\/li>\n
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Introductory Purchases APR<\/p>\n
0% Intro APR on Purchases for 15 months<\/p>\n<\/li>\n
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Ongoing Purchases APR<\/p>\n
18.24% – 27.74% Variable<\/p>\n<\/li>\n
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Introductory Balance Transfer APR<\/p>\n
0% Intro APR on Balance Transfers for 15 months<\/p>\n<\/li>\n<\/ul>\n
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Rewards rate<\/p>\n
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Enjoy 5% cash back on travel purchased through Chase Travel\u2120<\/li>\n
3% cash back on drugstore purchases and dining at restaurants (includes takeout and eligible delivery service)<\/li>\n
1.5% on all other purchases<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Benefits<\/p>\n
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You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts<\/li>\n
Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more<\/li>\n
Generous intro APR on purchases and balance transfers<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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No annual fee<\/li>\n
Generous APR offer<\/li>\n
Pairs well with Chase Sapphire cards<\/li>\n<\/ul>\n<\/div>\n
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Requires good to excellent credit<\/li>\n
Must use issuer’s travel portal to earn highest rewards<\/li>\n<\/ul>\n<\/div><\/div>\n<\/p><\/div>\n
Why we like it: <\/strong>Whether it\u2019s your first rewards card or your fifth, a Chase Freedom Unlimited card will add a ton of value to your wallet. Its hybrid rewards structure means you\u2019ll earn more rewards in specific categories while maintaining at least 1.5% back on every purchase. That\u2019s a great way to maximize every dollar you spend beyond bonus categories. Plus, a solid intro APR offer and valuable welcome bonus increase the card\u2019s first-year value even further.<\/p>\n
Read our full Chase Freedom Unlimited review.<\/em><\/strong><\/p>\n\n\n <\/header>\n<\/section>\n
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Annual fee<\/p>\n
$0 intro annual fee for the first year, then $95.<\/p>\n<\/li>\n
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Welcome offer<\/p>\n
Earn a $250 statement credit after spending $3,000 in eligible purchases in the first 6 months<\/p>\n<\/li>\n
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Introductory Purchases APR<\/p>\n
0% on purchases for 12 months<\/p>\n<\/li>\n
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Ongoing Purchases APR<\/p>\n
19.49%-28.49% Variable<\/p>\n<\/li>\n
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Introductory Balance Transfer APR<\/p>\n
0% on balance transfers for 12 months<\/p>\n<\/li>\n
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Ongoing Balance Transfer APR<\/p>\n
19.49%-28.49% Variable<\/p>\n<\/li>\n<\/ul>\n
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Rewards rate<\/p>\n
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6% cash back at U.S. supermarkets (on up to $6,000 in eligible purchases annually, then earn 1%)<\/li>\n
6% cash back on select U.S. streaming subscriptions<\/li>\n
3% cash back on at eligible U.S. gas stations and on transit, including taxis\/rideshare, parking, tolls, trains, buses, and more<\/li>\n
1% cash back on all other purchases<\/li>\n
*Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Benefits<\/p>\n
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Generous intro APR on purchases and balance transfers<\/li>\n
Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred\u00ae Card for a subscription purchase, including a bundle subscription purchase, at disneyplus.com, hulu.com, or plus.espn.com U.S. websites (subject to auto-renewal)<\/li>\n
Split purchases of $100 or more into equal monthly installments with a fixed fee \u2014\u00a0select the purchase in your online account or the American Express\u00ae App to see your plan options<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Multiple cash-back opportunities across many spending categories<\/li>\n
Cash back can only be redeemed as a statement credit or on Amazon.com checkout<\/li>\n
Has a spending cap of $6,000 on grocery earnings<\/li>\n<\/ul>\n<\/div><\/div>\n<\/p><\/div>\n
Why we like it:<\/strong> You\u2019ll 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 spending cap, that\u2019s a potential $360 back on just your grocery costs each year. Due in part to that major 6% category, this card has one of the highest potential annual rewards totals of any on our list, even after accounting for its annual fee. Don\u2019t forget the other rewards categories, too, which also make up plenty of common budget items. Cash back is received in the form of Reward Dollars, which can be redeemed as a statement credit or at Amazon.com checkout.<\/p>\n
Read our full review of the Blue Cash Preferred Card from American Express.<\/em><\/strong><\/p>\n\n
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Annual fee<\/p>\n
$0<\/p>\n<\/li>\n
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Welcome offer<\/p>\n
Earn a $200 statement credit after spending $2,000 within the first 6 months<\/p>\n<\/li>\n
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Ongoing Balance Transfer APR<\/p>\n
19.49%-28.49% Variable<\/p>\n<\/li>\n
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Introductory Purchases APR<\/p>\n
0% on purchases for 15 months<\/p>\n<\/li>\n
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Introductory Balance Transfer APR<\/p>\n
0% on balance transfers for 15 months<\/p>\n<\/li>\n
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Ongoing Purchases APR<\/p>\n
19.49%-28.49% Variable<\/p>\n<\/li>\n<\/ul>\n
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Rewards rate<\/p>\n
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3% cash back at U.S. supermarkets (on up to $6,000 per year in eligible purchases, then 1%)<\/li>\n
3% cash back on U.S. online retail purchases (on up to $6,000 per year in eligible purchases, then 1%)<\/li>\n
3% cash back at U.S. gas stations (on up to $6,000 per year in eligible purchases, then 1%)<\/li>\n
1% cash back on all other purchases<\/li>\n
Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Benefits<\/p>\n
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Generous intro APR on purchases and balance transfers<\/li>\n
Get up to a $7 monthly statement credit after using your enrolled Blue Cash Everyday\u00ae Card for a subscription purchase, including a bundle subscription purchase, at disneyplus.com, hulu.com, or plus.espn.com U.S. websites (subject to auto-renewal)<\/li>\n
Split purchases of $100 or more into equal monthly installments with a fixed fee \u2014\u00a0select the purchase in your online account or the American Express\u00ae App to see your plan options<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Multiple cash-back opportunities across many spending categories<\/li>\n
No annual fee<\/li>\n
0% introductory APR for first 15 months<\/li>\n<\/ul>\n<\/div>\n
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Cash back can only be redeemed on Amazon or as a statement credit<\/li>\n
Has annual spending caps on its boosted reward categories<\/li>\n<\/ul>\n<\/div><\/div>\n<\/p><\/div>\n
Why we like it: <\/strong>Online shopping is one of the most common ways we spend money today, but it\u2019s not often represented in credit card rewards. With the Blue Cash Everyday, you can earn 3% cash back on everything from huge retail sites to small online shops by your favorite sellers (up to $6,000 spent per year, then 1%) \u2014 in addition to the other 3% rewards categories. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.<\/p>\n
Read our full review of the Blue Cash Everyday Card from American Express.<\/em><\/strong><\/p>\n\n
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Annual fee<\/p>\n
$0<\/p>\n<\/li>\n
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Welcome offer<\/p>\n
Earn a $200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days of account opening<\/p>\n<\/li>\n
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Introductory APR<\/p>\n
0% intro APR for your first 15 billing cycles for purchases, and for any balance transfers made within the first 60 days of opening your account (variable APR of 17.49% – 27.49% after the intro APR ends)<\/p>\n<\/li>\n
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Purchase APR<\/p>\n
17.49% – 27.49% variable<\/p>\n<\/li>\n<\/ul>\n
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Rewards rate<\/p>\n
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3% cash back + 3% first-year cash back bonus in the category of your choice*<\/li>\n
2% cash back at grocery stores and wholesale clubs<\/li>\n
Unlimited 1% cash back on all other purchases<\/li>\n
*Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs (unlimited 1% after that); after the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Benefits<\/p>\n
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Bank of America Preferred Rewards\u00ae members can earn up to 75% more cash back on every purchase<\/li>\n
Choose which category you want to earn 6% cash back in for the first year: gas and EV charging stations; online shopping, including cable, internet, phone plans and streaming; dining; travel; drug stores and pharmacies; or home improvement and furnishings<\/li>\n<\/ul>\n<\/li>\n<\/ul><\/div>\n
Why we like it: <\/strong>Bank of America Preferred Rewards members can boost their cash back by up to 75%, giving the Bank of America Customized Cash Rewards some of the best earning potential of the cards on our list. Add in the fact that your cash back is largely customizable, and you have an all-around balanced card for earning rewards on everyday expenses.<\/p>\n
Read our full Bank of America Customized Cash Rewards review<\/em><\/strong>.<\/em><\/strong><\/p>\n\n
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Annual fee<\/p>\n
$0<\/p>\n<\/li>\n
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Welcome offer<\/p>\n
Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening<\/p>\n<\/li>\n
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Purchase APR<\/p>\n
18.49% – 28.49% variable<\/p>\n<\/li>\n
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Introductory APR<\/p>\n
0% intro APR on purchases and balance transfers for 12 months, then variable 18.49% – 28.49% APR<\/p>\n<\/li>\n<\/ul>\n
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Rewards rate<\/p>\n
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8% cash back on Capital One Entertainment purchases<\/li>\n
5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel<\/li>\n
3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart and Target)<\/li>\n
1% cash back on all other purchases<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Benefits<\/p>\n
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Generous intro APR on purchases and balance transfers for the first 12 months<\/li>\n
No foreign transaction fees<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Multiple cash-back opportunities across many spending categories<\/li>\n
No annual fee<\/li>\n
0% introductory APR for first 12 months<\/li>\n<\/ul>\n<\/div>\n
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Limits which grocery stores you can earn at<\/li>\n
Requires good to excellent credit<\/li>\n<\/ul>\n<\/div><\/div>\n<\/p><\/div>\n
Why we like it: <\/strong>The Capital One Savor card is ideal for restaurant spending, thanks to its unlimited 3% rewards rate \u2014 which is unmatched among most cash-back credit cards for dining out. This card can make a great fit for your wallet whether you prefer going out or staying in, with other bonus rewards on entertainment spending, grocery stores, and streaming subscriptions.<\/p>\n
Read our full Capital One Savor Cash Rewards Credit Card review.<\/em><\/strong><\/p>\n\n
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Annual fee<\/p>\n
$0<\/p>\n<\/li>\n
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Welcome offer<\/p>\n
Earn $200 in cash back after spending $1,500 on purchases in the first 6 months (bonus offer will be fulfilled as 20,000 ThankYou\u00ae points, which can be redeemed for $200 cash back)<\/p>\n<\/li>\n
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Purchase APR<\/p>\n
19.24% – 29.24% variable<\/p>\n<\/li>\n
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Introductory APR<\/p>\n
0% intro APR on balance transfers for the first 18 months<\/p>\n<\/li>\n<\/ul>\n
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Rewards rate<\/p>\n
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5% cash back on purchases in your top eligible spend category each billing cycle (up to the first $500 spent, 1% cash back after that)<\/li>\n
4% cash back on hotels, car rentals, and attractions booked on Citi Travel\u2120<\/li>\n
1% unlimited cash back on all other purchases<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Benefits<\/p>\n
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No annual fee<\/li>\n
As your spending changes, your rewards adjust automatically when you spend in any of the eligible categories each billing cycle<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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No annual fee<\/li>\n
Automatically earn the highest reward rate on your top spending category<\/li>\n
Generous intro APR for 15 months<\/li>\n<\/ul>\n<\/div>\n
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High spenders may be limited by the monthly spending cap in the 5% category<\/li>\n
Requires good to excellent credit<\/li>\n<\/ul>\n<\/div><\/div>\n<\/p><\/div>\n
Why we like it:<\/strong> The Citi Custom Cash Card is a great choice if your regular purchases look different month-to-month. This cash-back card will automatically adjust your top 5% reward category based on where you spend the most each billing cycle. These include standard categories like restaurants, gas stations, and grocery stores, as well as a few that aren\u2019t as common, such as home improvement stores, live entertainment, and fitness clubs.<\/p>\n
Read our full Citi Custom Cash Card review.<\/em><\/strong><\/p>\n\n
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Annual fee<\/p>\n
$0<\/p>\n<\/li>\n
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Welcome offer<\/p>\n
Earn a $200 cash rewards bonus after spending $500 within the first 3 months<\/p>\n<\/li>\n
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Introductory APR<\/p>\n
0% intro APR on purchases and qualifying balance transfers for the first 12 months, after which the standard APR applies (18.74% – 28.74% variable)<\/p>\n<\/li>\n
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Purchase APR<\/p>\n
18.74% – 28.74% variable<\/p>\n<\/li>\n<\/ul>\n
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Benefits<\/p>\n
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Get up to $600 of cell phone protection against damage or theft ($25 deductible applies)<\/li>\n
0% introductory APR is useful to finance large purchases or transfer a balance from another card<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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No annual fee<\/li>\n
Straightforward rewards rate<\/li>\n
0% intro APR offer<\/li>\n<\/ul>\n<\/div>\n
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Charges a foreign transaction fee<\/li>\n
No bonus categories<\/li>\n<\/ul>\n<\/div><\/div>\n<\/p><\/div>\n
Why we like it: <\/strong>One of the major selling points of the Wells Fargo Active Cash is that there\u2019s nothing complicated about it. You get a straight 2% cash back on all eligible purchases, making it easy to use this card on all your expenses. As added bonuses, you can also take advantage of complimentary cell phone protection and 0% introductory APR offers on purchases and balance transfers.<\/p>\n
Read our full Wells Fargo Active Cash review<\/em><\/strong>.<\/em><\/strong><\/p>\n\n
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Annual fee<\/p>\n
$0<\/p>\n<\/li>\n
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Welcome offer<\/p>\n
Discover will automatically match all the cash back you\u2019ve earned at the end of your first year, with no minimum spending requirement or maximum rewards cap<\/p>\n<\/li>\n
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Purchase APR<\/p>\n
17.74% – 26.74% variable<\/p>\n<\/li>\n
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Introductory APR<\/p>\n
0% intro APR on purchases and balance transfers for the first 15 months (17.74% to 26.74% variable APR after that; 3% intro balance transfer fee until March 10, 2026, then up to 5%)<\/p>\n<\/li>\n<\/ul>\n
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Rewards rate<\/p>\n
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5% cash back on everyday purchases at different places each quarter \u2014 including grocery stores, restaurants, gas stations, and more \u2014\u00a0up to the quarterly maximum<\/li>\n
1% unlimited cash back on all other purchases<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Benefits<\/p>\n
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Redeem your rewards for cash at any time<\/li>\n
Generous intro APR for purchases and balance transfers<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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Unlimited cash-back match for first 12 months<\/li>\n
0% APR for 15 months<\/li>\n
No annual fee<\/li>\n<\/ul>\n<\/div>\n
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Higher cash-back rate is limited to certain rotating categories, so it may be unpredictable<\/li>\n
Why we like it:<\/strong> Among rotating cash-back credit cards available today, the Discover it Cash Back is our top pick. This card\u2019s bonus categories change quarterly, but you\u2019ll earn 5% on up to $1,500 spent on eligible purchases (with activation). While we don\u2019t yet know the full lineup for the months ahead, previous quarters show that there is plenty of opportunity to maximize rewards, especially if you\u2019re flexible with where you spend. Learn more: 2025 Discover cash-back calendar<\/em><\/p>\n
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Potential annual cash back:<\/strong> $476.88 (based on 2024 categories)<\/p>\n<\/blockquote>\n
Read our full Discover it Cash Back review.<\/em><\/strong><\/p>\n\n
Cash-back credit cards are simple: Each time you charge a purchase to your card, you\u2019ll get a percentage of that spending back. The amount you earn back depends on the card\u2019s specific rewards structure.<\/p>\n
For example, say your weekly grocery haul costs $200 and you pay using a cash-back card that earns 3% back at grocery stores. You\u2019ll get $6 in cash back on that single purchase. As you spend in your card\u2019s bonus categories over time, you can accumulate more cash back. If you pay $200 at the grocery store each week and earn the same 3% rewards, you’d have about $24 in cash back on your grocery spending by the end of the month.<\/p>\n
Cash-back cards typically offer between 2% and 6% cash back across a range of bonus categories, as well as 1% on all non-bonus spending. This can vary, though, depending on the type of cash-back card you have (more on types of cash-back credit cards below).<\/p>\n
When you\u2019re ready to redeem your rewards, you can choose what form of cash back you prefer. Most cash-back credit cards allow you to choose between a statement credit to your account, a mailed check, or a direct deposit into a linked bank account. Some offer additional redemptions like gift cards or the option to put your rewards toward online purchases.<\/p>\n
Read more: <\/em><\/strong>How to use a cash-back credit card to save on daily spending<\/em><\/strong><\/p>\n
Cash-back credit cards tend to fall into one of three categories. Review your spending habits to find the type of cash-back card best fit for you.<\/p>\n
Flat cash-back cards have a fixed earning rate (usually 1.5% or 2%), so you\u2019ll get a standard amount of cash back on nearly everything you buy. There\u2019s no need to track bonus categories or percentages because you\u2019ll get the exact same amount back on every purchase.<\/p>\n
A flat-rate cash-back card may be best for someone whose spending is spread across different categories (or uncommon categories) or someone who wants to supplement their other rewards cards with a guaranteed return on every purchase.<\/p>\n
Tiered cash-back cards are probably what you imagine when you think of a cash-back credit card. You can use this type of card to earn different amounts across various spending categories, generally ranging anywhere from 2% to 6% cash back.<\/p>\n
Some tiered cash-back cards \u2014 especially those with 5% or 6% rewards \u2014 have monthly, quarterly, or annual spending caps for those top rates. For example, you might earn 5% cash back on dining, but only on the first $1,500 you spend at restaurants each quarter. After you meet the cap, you\u2019ll earn 1% in that category until the cycle renews.<\/p>\n
Make sure you choose a tiered cash-back card with top rewards where you spend most to get the best value.<\/p>\n
Rotating cash-back cards are unique because your top rewards categories are constantly changing. These cards earn 5% cash back each quarter in specific rotating categories, up to certain limits.<\/p>\n
Rotating bonus categories differ year-to-year, but tend to center around everyday spending. Categories like groceries, gas, or dining are common, as well as specific retailers like Target, Walmart, or Amazon. These cards often have two or three eligible categories per quarter.<\/p>\n
If you regularly spend much more than the quarterly cap (often around $1,500), you may not get the best value. You\u2019ll also need to manually activate the new categories in your account each time they roll around.<\/p>\n
There are plenty of good cash-back credit cards available today. Compare the card’s details with your goals and budget before you apply.<\/p>\n
Many cash-back cards charge no annual fee. However, you may earn higher rewards if you’re willing to pay one.<\/p>\n
An annual fee card may be worthwhile, depending on your budget and the value you\u2019ll get from your rewards. When we calculated average cash-back earnings, the earnings on annual-fee cards far outpaced the added costs. But if you don\u2019t spend as much as the average American across bonus categories like groceries, restaurants, and gas stations, that may not be true for you.<\/p>\n
Luckily, many top cash-back cards charge no annual fee at all \u2014 making it easy to find great savings on any budget.<\/p>\n
Cash-back credit cards usually offer a cash bonus if you meet a spending threshold within the specified timeframe after opening your account. You’ll typically see bonuses for $150 to $200 (or more) after spending a minimum of $500 to $2,000 on your card within three to six months of account opening.<\/p>\n
As with any new card, avoid spending more than you usually would just to earn the bonus cash from a welcome offer. If you can\u2019t pay down your balances right away, the potential interest charges you\u2019ll accrue could quickly eliminate any rewards you earn.<\/p>\n
In addition to cash welcome offers, many cash-back cards also have 0% introductory APR offers on new purchases. You\u2019ll earn 0% interest for around 6 to 18 months, after which any remaining balance will accrue interest at the standard rate.<\/p>\n
Some cash-back cards also have 0% APR offers for balance transfers, which can help you pay down existing credit card debt (just make sure you know the terms of the offer, including balance transfer fees, before you sign up).<\/p>\n
Perhaps the most important factor in your card choice is how you\u2019ll earn rewards. Here are a few common bonus categories today:<\/p>\n
Review your receipts or bank statements from the past several months to get an idea of where you spend most. Do you frequently eat out or use delivery services, or do you cook most meals at home? Are you always filling up your gas tank for a daily commute, or do you rely more on public transportation or rideshares?<\/p>\n
Make sure you look into the eligible purchases for each category, too. For example, wholesale clubs like Costco and superstores like Target and Walmart are typically excluded from grocery store rewards. If you often buy your groceries in these stores, make sure you\u2019ll get rewarded.<\/p>\n
The details of your routine spending habits can help you choose the best cash-back credit card. But don\u2019t forget about flat cash-back cards and cards with rotating categories. These can sometimes be even more lucrative, especially if your spending falls outside of common categories.<\/p>\n
4. Benefits and more<\/h3>\n
You won\u2019t find as many added benefits from cash-back cards as you will on travel and rewards credit cards. But some cash-back cards do offer extra perks that can help you save throughout the year.<\/p>\n
Often, cash-back credit card benefits come from brands that partner with credit card issuers. For example, you may get a small monthly credit or trial membership toward a service or subscription. If you are already a member or subscriber to the perk your card offers, this can be a great way to earn an extra savings boost over time.<\/p>\n
Related: <\/em><\/strong>How to reserve a table at the hottest restaurants with your credit card<\/em><\/strong><\/p>\n
Here are a few things to consider while you earn and redeem cash-back rewards:<\/p>\n
Make sure you keep regular track of the cash rewards you earn. They probably won\u2019t expire unless you close your account, but you don\u2019t want to leave them unused for too long, either.<\/p>\n
Some issuers have thresholds you must meet (like a $25 minimum) before you can redeem. You may also be able to set up automatic redemptions, which will kick in once you earn a certain amount.<\/p>\n
Consider redeeming your cash back regularly unless you\u2019re saving for a big redemption. If you\u2019re simply collecting cash rewards in your account, you\u2019re not gaining any value from them. Unlike a savings account, they don\u2019t earn any interest \u2014 so you could even lose potential value if you account for inflation.<\/p>\n
Cash-back cards can be ideal for pairing with other credit cards to maximize your earnings.<\/p>\n
For example, say you already have a travel card you use to earn bonus points on flights, hotels, and rental cars when you travel. Opening a cash-back card could supplement your savings with rewards on dining, monthly streaming service bills, and drugstore essentials. Now, between both cards, you can optimize most of your spending at home and on the go.<\/p>\n
If you don\u2019t travel \u2014 or just want to keep things simple \u2014 you can do something similar with two cash-back cards. Maybe you already have a card that earns 3% rewards at supermarkets and gas stations, but only 1% cash back elsewhere. By adding a flat cash-back card that earns 2% on every purchase to your wallet, you can increase your baseline rewards every time you swipe (while still earning the higher 3% on groceries and gas).<\/p>\n
Strategizing credit card spending like this might take time, but it will help you earn much greater value over the long-term.<\/p>\n
Just remember to pay your balances off in full and on time each month to get the maximum value. Otherwise, high interest rates could wipe out your savings and leave you with mounting debt balances.<\/p>\n
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Simplicity:<\/strong> Cash-back cards can be some of the simplest reward cards to use. You don\u2019t 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.<\/p>\n<\/li>\n
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Everyday savings:<\/strong> If you don\u2019t travel much or you already have a travel credit card for flights and hotels, a cash-back card can offer plenty of savings on essentials like gas, groceries, utility bills, and more.<\/p>\n<\/li>\n
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Low or no annual fees: <\/strong>You can get hundreds of dollars in value each year with your regular, budgeted purchases by using a cash-back card. And many of these cards have no annual fee \u2014 so as long as you don\u2019t carry a balance and accrue interest, there\u2019s no cost to the rewards you earn. Even the cards that do have annual fees typically charge no more than $95, often in exchange for higher reward rates.<\/p>\n<\/li>\n<\/ul>\n
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High APRs:<\/strong> Like any credit card, cash-back cards have very high interest rates. You shouldn\u2019t opt for a cash-back card if you can\u2019t pay your monthly statement in full, since any revolving balances can quickly turn into high-interest debt. If you want to get any return on your spending with cash back, avoid taking on debt with your card.<\/p>\n<\/li>\n
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Potentially better rewards elsewhere:<\/strong> In some cases, there may be better options than cash-back cards for your spending. Spending caps for rewards can hinder cardholders with very large monthly budgets, for example. Plus, the value you get for your rewards may increase when you opt for a rewards program with multiple redemption options.<\/p>\n<\/li>\n
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Foreign transaction fees:<\/strong> You can find some cash-back credit cards with no foreign transaction fees, but this benefit is less common with cash-back cards compared to travel credit cards. If you travel abroad often and want to earn rewards on your international spending, make sure you check for foreign transaction fee costs \u2014 or you could end up paying an extra 3% on each purchase.<\/p>\n<\/li>\n<\/ul>\n
As long as you pay off your balance each month, a cash-back card can play an important role in helping every consumer save money \u2014 whether you\u2019re looking to supplement the other cards in your wallet, maximize your everyday purchases, or begin building credit.<\/p>\n
Just make sure you take the time to find the right cash-back credit card with rewards where you already spend. Between flat, rotating, and tiered cash rewards (or cards that offer any combination of the three), there are plenty of options that will fit your top spending categories.<\/p>\n
Many cash-back cards require good to excellent credit, or a FICO Score of at least 670, for approval. If you don\u2019t already have good credit or you have a limited credit history, you may want to consider a cash-back credit card designed for cardholders who are building credit, even if the rewards aren\u2019t quite as robust.<\/p>\n
Before you apply, consider seeing whether you\u2019re pre-approved for a card, so you don\u2019t undergo a hard credit inquiry only to not get approved.<\/p>\n
Related: <\/em><\/strong>Prequalified vs. preapproved credit card offers<\/em><\/strong><\/p>\n
The best cash-back rewards will depend on your spending habits and how you use your card. If most of your budget is focused on a few different categories (buying groceries, filling up your car\u2019s gas tank), you\u2019ll probably get the best value from a card with higher rates in those categories. On the other hand, if you don\u2019t want to worry about categories, a flat cash-back card that earns 1.5% or 2% back on every purchase may be a much better value for you.<\/p>\n
Before you apply for a cash-back card, look at your overall spending and budget \u2014 and get realistic about how much you\u2019re willing to do to maximize different spending categories.<\/p>\n
In many cases, cash back will not expire until your account is closed. However, issuers may have different standards for how long your cash back lasts. Always make sure to read your card agreement for expiration dates and other details that may apply.<\/p>\n
Most cash-back cards offer at least 1% back on every purchase \u2014 but there are some transactions that may not qualify. For example, issuers often exclude lottery tickets and gambling chip purchases from earning cash back, as well as items you return or unauthorized spending. You also won\u2019t earn cash back for balance transfers, cash advances, and other types of non-purchase transactions.<\/p>\n
You can find the full list of what counts toward your cash-back earnings and what doesn\u2019t qualify within your card\u2019s rewards agreement.<\/p>\n
The highest cash-back rates today can reach 5% or 6% cash back in specific categories. But if those categories don\u2019t match your most frequent purchases, they won\u2019t be the most rewarding cards for you. Instead, you might earn more from a flat cash-back card that nets a lower 1.5% or 2% cash back on every purchase.<\/p>\n
To find the card with the most potential cash back, always compare reward categories to your own spending.<\/p>\n
With the top cash-back cards today, you can get upwards of 3% back when you fill up your gas tank, even from cards with no annual fee.<\/p>\n
These are a few credit cards we like with high cash-back rewards rates for gas stations:<\/p>\n
If you\u2019re looking for the credit card with the most cash back on everything, you\u2019ll want to look for a flat-rate cash-back card. Today, these cards typically max out at 1.5% or 2% back on every purchase.<\/p>\n
You might earn a lower rate on some purchases than cards with up to 6% back in specific categories, but you could ultimately come out ahead if your most frequent spending doesn\u2019t fit into typical cash-back categories.<\/p>\n
Here are a few cards that earn flat cash back on every purchase:<\/p>\n
Plenty of cash-back cards have 5% rewards in specific bonus categories or rotating quarterly categories, but you\u2019re not likely to find a card with flat 5% back on everything. To earn 5% across several of your top spending categories, consider combining more than one cash-back credit card into your rewards strategy.<\/p>\n
Cash-back credit cards are often worth it for the savings they offer on everyday spending. Many have no annual fee \u2014 and even those that do typically charge no more than $100 annually \u2014 meaning more of your earnings can go straight toward maximizing your spending. Plus, you can enjoy all the other benefits of rewards credit cards, like annual discounts and credits, purchase protections, fraud prevention, and more.<\/p>\n
Cash-back credit cards likely aren’t worth it if you carry a balance since high interest charges can quickly outpace the value of any rewards. Spend only what you can afford and pay your balance off every month to get the most out of your cash-back card.<\/p>\n\n
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To choose the best cash-back credit cards, we began with a list of nearly 40 cards offering cash-back rewards today. Because we wanted to focus on general cash back for a broad range of users, we didn\u2019t include co-branded retail cards or business cash-back cards in our analysis.<\/p>\n
The first detail we looked at was potential cash rewards, using Consumer Expenditure data from the Bureau of Labor Statistics. The most recent data is from 2023, published in September 2024. Average spending for American households totaled $77,280 (up from $72,967 in 2022). To keep our focus on credit card spending, we removed housing costs, vehicle purchases, healthcare expenses, cash contributions, personal insurance, and pension spending from that total.<\/p>\n
The remaining average annual expenditure, then, was $28,210 (about $2,350 per month).<\/p>\n
We used the detailed expenditure data to find each card\u2019s potential earnings by reward categories, including food at home, food away from home, gasoline, entertainment, and more. We also included all non-category spending at 1%, so each card\u2019s \u201cpotential annual cash back\u201d is based on the same overall spending total of $28,210 per year.<\/p>\n
Potential cash-back earnings made up one data point in our overall rubric, but we also looked at card details like annual fee, introductory 0% APR, ongoing APR, welcome offer, reward structure, added benefits, and whether the card charges foreign transaction fees. For all of our credit card ratings, we also compare customer service and fraud monitoring details.<\/p>\n
The cards that made our final list of the best cash-back credit cards are those with the highest overall scores, which we believe can offer anyone maximum return on their spending.<\/p>\n
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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\u2019s 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.<\/em><\/p>\n<\/p><\/div>\n
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