Best Cashback Credit Cards – 10 Best Credit Cards For Cashback in 2021

Fact Checked by Gary McFarlane

Credit cards are great for shopping. They give you the freedom to buy anything you like even if you don’t have cash on hand. Most credit cards even reward you for using the credit card for making purchases. Usually the rewards are in the form of points that you can redeem. But, what if the reward was in the form of a cashback? Wouldn’t that be cool? Turns out there are credit cards that give you back a percentage of the money you use for making a transaction with them. It is like getting money for spending money. Now that you know about them, you must be wondering how to get your hands onto one.

There are multiple options available to you when it comes to cashback credit cards. Some of them offer a better cashback while others have a better introductory offer. You have to compare the various aspects of the cashback credit card like APR rates and eligibility criteria to determine whether it is the best fit for you or not. In this guide, we will give you a comparison of the best cashback credit cards available in the market right now and make it easier for you to choose the best one among them.

#1 Cashback Credit Card in 2021 – Credit Soup

 

10 Best Cashback Credit Cards – Quick Pick

Cashback credit cards can help you save money on your purchases. However, the amount of money you save is different for different cashback credit cards. This is why it is important that you select that card which can provide you with the most cashback. Here is a list of the best cashback credit cards that you should consider getting.

  • Wells Fargo Active CashSM Card – Best for Rewards
  • Citi Custom CashSM Card – Best for Easy Approval
  • Blue Cash Preferred® Card from American Express – Best for No Credit Check
  • Citi® Double Cash Card – Best for Reporting to All Three Credit Bureaus
  • Capital One SavorOne Cash Rewards Credit Card – Best for Quick Approval
  • Discover It® Cash Back – Best For Limited Credit Scores
  • Bank of America® Unlimited Cash Rewards Credit Card – Best for Quick Prequalification
  • Chase Freedom FlexSM – Best for No Credit Check and No Bank Account
  • Capital One Quicksilver Cash Rewards Credit Card – Best For Limited Credit Scores
  • Chase Freedom Unlimited® – Best For No Guarantors

What are Cashback Credit Cards?

Cashback credit cards let you gain back some of the money you spent on buying things. They offer reward points which are in the form of cash. This cash is calculated on the basis of a particular percentage of your total spending. Cashback credit cards are ideal if you don’t go over the limit and always pay off your credit card bill in full. If not, then the interest you would have to pay on these cards will be far greater than any rewards that you get from them.

Common Uses of Cashback Credit Cards

Cashback credit cards are commonly used as a savings tool. They can help you save some money on your daily spending. You can earn back a fraction of the money you spent on buying groceries, gas, or dining out at restaurants. The cashback you get from these cards isn’t too much but it is still enough to make a difference. You can use the cashback you have earned to shop for more items you need. The cashback can be redeemed as statement credit as well.

How to Qualify for Cashback Credit Cards

In order to qualify for a cashback credit card, you need to have an account at the bank offering the card. Secondly, you need to have at least a fair or a good credit score. In fact, the best cashback credit cards require you to have an excellent credit score. If you have poor credit then it would be almost impossible for you to qualify for the top tier cashback credit cards that offer cardholder perks, high cashback rates, and big intro bonuses. However, you might be able to qualify for some secured cards that provide cashback rewards. The caveat is that these cards charge high fees, don’t offer much cardholder benefits, and have very low cashback rates.

Best Cashback Credit Cards – Fully Reviewed

1. Wells Fargo Active CashSM Card

Wells Fargo Active CashSM Card offers one of the highest cashback rates in the market at the moment, a flat rate of 2% on all your purchases. Not only that, this card has zero annual fees. On top of that, it also offers various bonus rewards that you won’t find anywhere else. You get a lucrative introductory offer with the Wells Fargo Active CashSM Card too. It allows you to earn an extra $200 for spending $1000 during the first 3 months period. The APR rate this card offers is variable and ranges in between 14.99% and 24.99%. You won’t have to deal with the APR rate for the first 15 months of opening the account, though. Your APR rate during this initial period would be 0%.

APR Rate Cashback Rate Annual Fee Star Rating
14.99% – 24.99% 2% $0 5

Pros

  • Flat 2% cashback rate
  • $0 annual fees
  • $200 introductory offer

Cons

  • 3% foreign transaction fee

The Wells Fargo Active CashSM Card is a smart choice for you if you make most of your purchases with a credit card.

2. Citi Custom CashSM Card

Citi Custom CashSM Card has a very high cashback rate of 5% to offer you. However, it isn’t applicable to all of your credit card spending. You can get cashback at this rate for spending only in certain categories that you are eligible for. These spending categories include gas, restaurants, and groceries. The maximum spending amount on which the 5% cashback rate is applied is $500, though. For the rest of your purchases, you will get a flat rate of 1% cashback. This card doesn’t charge an annual fee. Also, for the first 15 months, your APR will be 0%. After the 15 months, a variable APR rate of 13.99% to 23.99% will be applied.

APR Rate Cashback Rate Annual Fee Star Rating
13.99% – 23.99% 1%-5% $0 4.7

Pros

  • 5% cashback rate on popular spending categories
  • $0 annual fee

Cons

  • Spending cap of $500

The Citi Custom CashSM Card is the perfect fit for people who use credit cards at restaurants, grocery stores, and gas stations.

3. Blue Cash Preferred® Card from American Express

Blue Cash Preferred® Card from American Express offers you a stellar 6% cashback rate. This amazing cashback rate is applied only to purchases made at US supermarkets, though. Also, your spending cap for the year for this cashback rate is $6000. The 6% cashback rate isn’t just for grocery shopping. You can also enjoy this phenomenal rate on buying subscriptions of select US streaming services too. Aside from that, there is a 3% cashback rate available for purchases made at gas stations throughout the US. This same rate is offered for transit spending as well. This card doesn’t charge an annual fee for the first year but then charges an annual fee of $95.

APR Rate Cashback Rate Annual Star Rating
13.99% – 23.99% 1%-6% $0 first year, $95 5

Pros

  • 6% cashback rate for grocery and streaming spending
  • 3% cashback rate for transit and gas station spending

Cons

  • $95 annual fee after the first year

The Blue Cash Preferred® Card from American Express is perfect for families that spend a lot on groceries and streaming services.

4. Citi® Double Cash Card – 18 Month BT Offer

Citi® Double Cash Card – 18 Month BT Offer provides a flat rate of 2% cashback on all purchases. However, the disbursement of this cashback is done in stages. For instance, 1% of this cashback rate is applied when you make the purchases while the other 1% is applied when you pay for the purchases. You need to payback at least the minimum due amount on time to get your cashback. While the cashback rate is good, the $0 annual fee of this card makes it even better. However, as amazing as this cashback credit card is, it doesn’t give you any introductory offers. Moreover, cashback can’t be redeemed until you have earned $25 in cashback.

APR Rate Cashback Rate Annual Fee Star Rating
13.99% – 23.99% 1%-2% $0 5

Pros

  • High cashback rate on all purchases
  • $0 annual fee

Cons

  • No introductory offers

Citi® Double Cash Card – 18 Month BT Offers is a great cashback credit card for people who want cashback on everything they purchase with their credit card.

5. Capital One SavorOne Cash Rewards Credit Card

Capital One SavorOne Cash Rewards Credit Card offers a high cashback rate of 8%. However, this incredible rate is only available for booking tickets at Vivid Seats. For dining and grocery shopping, this card offers a generous cashback rate of 3%. That’s not all. You get an introductory offer with the Capital One SavorOne cash rewards credit card as well. It allows you to earn $200 as a cash bonus for spending $500 during the first 3 months. To top it all off, this card doesn’t charge you any annual fee or any foreign transaction fee.

APR Rate Cashback Rate Annual Fee Star Rating
14.99% – 24.99% 1%-8% $0 5

Pros

  • 8% cashback for specific spending categories
  • No foreign transaction fee
  • $0 annual fee

Cons

  • 8% cashback rate available for just one spending category

The Capital One SavorOne Cash Rewards Credit Card is ideally suited for anyone who travels frequently and is likely to use the card abroad.

6. Discover It® Cash Back

Discover It® Cash Back offers a 5% cashback rate on everyday purchases in spending categories that you choose. You can change the category at every quarter. There is a $1,500 quarterly spending limit for this cashback rate, though. The spending categories range from groceries to restaurants and gas stations and even Amazon.com. You will earn 1% cashback on all of your purchases in addition to this. Discover It® Cash Back sweetens its deal with its Cashback MatchTM introductory offer. With this offer, you get the chance to double the cashback you have earned throughout the first year. This card doesn’t charge an annual fee too.

APR Rate Cashback Rate Annual Fee Star Rating
11.99% – 22.99% 1%-5% $0 4.8

Pros

  • 5% cashback rate for quarterly categories
  • Cashback MatchTM introductory offer
  • $0 annual fee

Cons

  • Quarterly categories need to be activated to earn cashback

Discover It® Cash Back is an excellent cashback credit card for families who shop from Amazon.com regularly.

7. Bank of America® Unlimited Cash Rewards Credit Card

Bank of America® Unlimited Cash Rewards Credit Card offers a flat cashback rate of 1.5% on all of your purchases. You don’t have to worry about any spending categories or having to activate them. This card doesn’t charge any annual fee from you either. The great thing about the Bank of America® Unlimited Cash Rewards Credit Card is that it provides an amazing introductory offer too. With this offer, you can earn an extra $200 if you make purchases of more than $1000 in the first three months of getting this card. There are no caps for spending or earning cashback which is a massive plus.

APR Rate Cashback Rate Annual Fee Star Rating
13.99% – 23.99% 1.5% $0 4.9

Pros

  • Flat 1.5% cashback rate on all purchases
  • $0 annual fee
  • Nice introductory offer

Cons

  • Lower cashback rate

The Bank of America® Unlimited Cash Rewards Credit Card is a good option for people who don’t want to limit their cashback earnings.

8. Chase Freedom FlexSM

Chase Freedom FlexSM provides a mouthwatering 5% cashback rate. However, it is applicable for certain spending categories only. For instance, you can get the 5% cashback for grocery spending of up to $12000 for the first year. You are offered quarterly categories as well which have the same 5% cashback rate. The spending limit for the quarterly categories is $1500 per quarter. Chase Freedom FlexSM doesn’t charge any annual fee from you. In addition to this, you get an amazing introductory offer with this card too. This offer allows you to earn $200 bonus cash for spending $500 within the first 90 days.

APR Rate Cashback Rate Annual Fee Star Rating
14.99% – 23.74% 1%- 5% $0 5

Pros

  • 5% cashback rate for specific spending categories
  • $0 annual fee
  • $200 introductory offer

Cons

  • Quarterly categories need to be activated to earn cashback

The Chase Freedom FlexSM is an excellent cashback credit card for people who want to earn some money back while shopping for groceries.

9. Capital One Quicksilver Cash Rewards Credit Card

Capital One Quicksilver Cash Rewards Credit Card comes with a flat rate of 1.5% cashback. You don’t have to worry about any limits for your spending as the cashback can be earned for any and all purchases you make. This card offers a very sweet introductory offer as well that lets you earn an extra $200 on spending $500 in the first 3 months. That’s not all. The Capital One Quicksilver Cash Rewards Credit Card doesn’t charge an annual fee or a foreign transaction fee. So, you can use it even on your trips abroad.

APR Rate Cashback Rate Annual Fee Star Rating
14.99% – 24.99% 1.5% $0 4.9

Pros

  • $0 annual fee
  • No foreign transaction fee
  • Nice introductory offer

Cons

  • Lower cashback rate

The Capital One Quicksilver Cash Rewards Credit Card is the smart choice for people who travel frequently and often shop abroad.

10. Chase Freedom Unlimited®

Chase Freedom Unlimited® doesn’t charge an annual fee and offers a substantial 5% cashback rate. However, this 5% cashback rate isn’t applicable to all of your purchases. It is limited to grocery shopping of up to $12000 and that too only for the first year. For all the rest of your purchases, you will get a flat rate of 1.5% cashback. Aside from the $0 annual fee, this card offers another incentive. It provides an introductory offer that allows you to earn $200 extra cash for spending $500 within the first three months of getting this card.

APR Rate Cashback Rate Annual Fee Star Rating
14.99% – 23.74% 1.5%-5% $0 5

Pros

  • Multiple cashback rates
  • Nice introductory offer
  • $0 annual fee

Cons

  • 3% foreign transaction fee

The Chase Freedom Unlimited® is a good fit for people who want to earn back some money on their daily purchases.

Features of Cashback Credit Cards

Each cashback credit card is unique and offers its own set of benefits to you. However, they all have some features that are common among them.

  • Cashback rate: It is the rate or percentage of cashback that the card offers to you. The cashback rate is fixed for some cashback credit cards while others offer a variable rate.
  • Annual fee: It is the fee charged by the provider of the card on a yearly basis. For most of the cashback credit cards, no annual fee is charged initially.
  • Bonus rewards: Aside from the cashback that cashback credit cards offer, they offer some bonus rewards as well. These bonus rewards are different for different cards and depend mostly on your credit card spending.
  • Introductory offer: It is the extra sum of cash offered by the card provider to you on spending a specific amount of money using the credit card. The introductory offer is again different for different cards with some providers offering as high as $300.
  • Recommended credit score: It is the credit score that is guaranteed to make you eligible for getting the cashback credit card. For most cashback credit cards, the recommended credit score ranges in between 690 to 850.

Cashback Credit Cards Bad Credit

Having bad credit is an issue when trying to get a loan or applying for a credit card. Bad credit means having a bad credit score. Your credit score shows how likely are you to pay back the credit you are taking on. If you fail to pay off your loans or credit card bills, it gets reflected in your credit score. The bad your credit score is, the harder it will be for you to get any loan or credit card. However, there is hope still. Some banks and card providers allow people with bad credit scores to get cashback credit cards. The catch is that the interest rates for the cards or the APR is very high.

Cashback Credit Cards No Credit Checks

Card providers perform a credit check before approving your request for a credit card. It is a look at your credit history to see how good you have been at paying off the loans you have taken in the past. The card providers want to know if you would be able to pay back the credit card bills in full at the end of each month. These credit checks are made by credit assessment agencies on behalf of the card providers. You cannot get your credit checked by yourself, though. So, you would never know whether you are eligible for a credit card or not.

  • Guaranteed approval: It means getting your loan or credit card request approved even if you have bad credit. There is no such thing as guaranteed approval.
  • Low interest rates: It means having relatively lower interest rates on the credit card bills. Cashback credit cards usually have higher interest rates than other credit cards.
  • No annual fee: It means not having to pay any fee for using the card at the end of the year. Most cashback credit cards don’t charge any annual fee.

Cashback Credit Cards Vs Other Credit Cards

Credit Card Type Rewards Annual Fee Ease of Use
Cashback Credit Card Cashback $0 Very
Other Credit Cards Points $400+ Not at all

 

Pros of Cashback Credit Cards

  • Earn back a small percentage of your credit card spending.
  • Easy to understand the rewards you are getting. You will always know the amount of cashback you are getting since it is calculated as a percentage of your credit card spending.
  • Save money without even trying to. You can get at least 1% cashback on all of your purchases and it can go even higher with cards offering flat rates of 1.5 to 2%.
  • Cashback is considered nontaxable rebate by the IRS and is thus labeled as tax-free.
  • Sign-up bonuses of up to $250 are offered by some cashback credit cards. You can get this amount just for purchasing and using the card.

Cons of Cashback Credit Cards

  • High APR rates are common for all cashback credit cards.
  • Some card providers put caps on the amount of cashback you can earn for your credit card spending. You won’t be able to earn as much as you would like.
  • If you are planning on using the cashback credit cards abroad then you will have pay a foreign transaction fee which can be as high as 3%.
  • Cashback credit cards only offer cashback rewards and you can’t convert these rewards to pay off travel expenses.

Conclusion

To sum it up, cashback credit cards are very useful for the average shopper. They provide cashback, introductory offers, and bonus rewards that can end up as savings. Most cashback credit cards don’t even charge an annual fee. However, you should not get a cashback card if you have difficulty paying off your credit card bills. The reason for this is that the APR rate of these cards is very high. It can easily offset any cashback you manage to earn by using the cashback credit card.

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About Jayme Wium PRO INVESTOR

Jayme is a professional freelance writer specializing in personal finance, business, nutrition, botany and mental health. She has studied extensively in these fields and spends a considerable amount of her time creating content to help simplify complex concepts for the everyday person.