Choosing the right credit card can help you earn money on your everyday purchases. With cashback credit cards, you can earn back a percentage of what you spend, offering a simple and effective way to save. In this guide, we’ll break down the top cashback credit cards for 2024 and help you find the best card for your spending habits.
What Are Cashback Credit Cards?
Cashback credit cards allow you to earn back a percentage of your spending on certain purchases. These cards usually offer different reward rates depending on spending categories such as groceries, dining, gas, and more. For example, you might earn 3% cashback on groceries and 1% on everything else.
These rewards can be redeemed as:
- Statement credits: Lower your balance by using cashback rewards.
- Direct deposits: Receive your cashback directly into your bank account.
- Gift cards or merchandise: Some cards offer the option to redeem rewards for gift cards or products.
Top Cashback Credit Cards in 2024
1. Chase Freedom Flex®
Best for Rotating Bonus Categories
- Cashback Rewards: 5% on rotating categories (up to $1,500 per quarter), 5% on travel through Chase Ultimate Rewards, 3% on dining and drugstores, and 1% on all other purchases.
- Annual Fee: $0
- Intro Offer: $200 bonus after spending $500 in the first 3 months.
Why It’s Great: The Chase Freedom Flex® offers generous rewards in rotating categories such as groceries, gas, and streaming services. If you’re flexible with your spending, this card provides great value.
Pros:
- No annual fee
- High rewards potential with rotating categories
- Strong travel and dining rewards
Cons:
- Requires tracking of rotating categories
2. Blue Cash Preferred® Card from American Express
Best for Grocery and Streaming Purchases
- Cashback Rewards: 6% on U.S. supermarket purchases (up to $6,000 per year), 6% on U.S. streaming services, 3% on transit and U.S. gas stations, 1% on all other purchases.
- Annual Fee: $0 intro annual fee for the first year, then $95.
- Intro Offer: $250 statement credit after spending $3,000 in the first 6 months.
Why It’s Great: The Blue Cash Preferred® Card is a top choice for families or anyone who spends a lot on groceries and streaming services. The high cashback rates in these categories can lead to substantial savings.
Pros:
- Best-in-class rewards on groceries and streaming
- Strong transit and gas rewards
- $0 annual fee for the first year
Cons:
- Annual fee after the first year
- Grocery rewards are capped at $6,000 annually
3. Citi® Double Cash Card
Best for Simple, Flat-Rate Rewards
- Cashback Rewards: Earn 2% on every purchase — 1% when you buy and 1% when you pay.
- Annual Fee: $0
- Intro Offer: None
Why It’s Great: The Citi® Double Cash Card is ideal for those who want simplicity. There’s no need to track categories or limits; you earn a flat 2% cashback on everything.
Pros:
- Simple, no-nonsense cashback structure
- No annual fee
- Easy to earn rewards on every purchase
Cons:
- No bonus rewards categories
- No intro offer
4. Discover it® Cash Back
Best for Cash Back Match
- Cashback Rewards: 5% on rotating categories (up to $1,500 per quarter), 1% on all other purchases.
- Annual Fee: $0
- Intro Offer: Unlimited Cashback Match — Discover will match all the cashback you’ve earned at the end of your first year.
Why It’s Great: The Discover it® Cash Back offers unique value with its Cashback Match, doubling your first year’s rewards. It’s perfect for maximizing your cashback in rotating categories.
Pros:
- No annual fee
- Unlimited Cashback Match for the first year
- 5% rewards in popular categories
Cons:
- Rotating categories require tracking
5. Wells Fargo Active Cash® Card
Best for Unlimited 2% Cash Back
- Cashback Rewards: 2% unlimited cash back on all purchases.
- Annual Fee: $0
- Intro Offer: $200 cash rewards bonus after spending $1,000 in the first 3 months.
Why It’s Great: The Wells Fargo Active Cash® Card is one of the best flat-rate cashback cards available, offering 2% back on all purchases without any caps or restrictions.
Pros:
- Unlimited 2% cashback on all purchases
- No annual fee
- Introductory bonus
Cons:
- No bonus categories
- Limited benefits outside of cashback rewards
How to Choose the Right Cashback Credit Card
Choosing the best cashback credit card depends on your spending habits. Here are some factors to consider:
1. Spending Categories
- Do you spend a lot on groceries, dining, or gas? Look for cards that offer higher cashback rates in those categories.
- For those with more varied spending, a card with flat-rate cashback on all purchases may be the best option.
2. Annual Fee
- Some cards have no annual fee, while others charge a fee but offer higher rewards in certain categories. Make sure the rewards you earn outweigh the annual fee.
3. Introductory Offers
- Many cashback cards come with signup bonuses or introductory offers. Look for cards that provide attractive bonuses, especially if you plan to spend more in the first few months.
4. Redemption Flexibility
- Ensure the card allows you to redeem your cashback rewards easily — whether as a statement credit, direct deposit, or gift cards. Some cards offer more flexibility than others.
5. Rotating vs. Fixed Categories
- Cards with rotating categories offer high rewards in specific areas but require you to track which categories are active. If you prefer simplicity, a card with fixed bonus categories or flat-rate rewards may be a better choice.
Maximizing Cashback Rewards: Pro Tips
To get the most out of your cashback credit card, follow these tips:
- Track Spending Categories: Use a card that aligns with your monthly spending habits. If you spend heavily on groceries or dining, prioritize cards that offer higher cashback in these categories.
- Use Multiple Cards: For optimal rewards, you might want to use multiple cards based on categories. For example, one card for groceries and gas, and another for dining and travel.
- Pay Off Balances Monthly: Cashback rewards are negated if you’re paying interest on unpaid balances. Always pay off your balance in full each month to avoid interest charges.
- Take Advantage of Signup Bonuses: If your card offers an intro bonus for spending a certain amount in the first few months, try to reach that goal to earn the reward.
Frequently Asked Questions (FAQs)
Are cashback credit cards worth it?
Yes! Cashback credit cards are an excellent way to earn rewards for everyday purchases. As long as you pay off your balance each month, you can enjoy free rewards without paying interest.
Do cashback rewards expire?
Most cashback rewards do not expire as long as your account remains in good standing. However, always check the card’s terms and conditions to ensure you understand how and when to redeem your rewards.
Can I use multiple cashback credit cards?
Yes, many savvy consumers use more than one cashback credit card to maximize rewards in different spending categories. Just be sure to keep track of each card’s rewards structure and due dates.
What is the best cashback card for groceries?
The Blue Cash Preferred® Card from American Express is one of the best cards for groceries, offering 6% cashback on up to $6,000 in purchases per year at U.S. supermarkets.
Choosing the right cashback credit card in 2024 can help you earn money on everyday purchases. Whether you prefer rotating categories, flat-rate rewards, or maximizing your grocery spending, there’s a cashback card for you. Compare the features and benefits of the top cashback cards and select the one that aligns with your financial goals and spending habits.
By making smart choices and using your card strategically, you can maximize your rewards and save money in the long run.
