The best cashback credit cards can reward you for everyday purchases such as your grocery store and gas station visits as well as for travel, entertainment and online shopping. These cards often come with an annual fee in exchange for better perks, and credit card issuers may offer a welcome bonus or promotional APR period too. You can choose from flat-rate cashback cards as well as category cards suiting specific spending habits. Check out four types of cashback credit cards and learn how the cards work.
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1. American Express Blue Cash Preferred
Offering a better rewards rate than the Blue Cash Everyday, the Blue Cash Preferred card waives the $95 annual fee the first year and offers useful perks for everyday purchases.
The cashback categories include six percent for qualifying streaming services and grocery store purchases (first $6,000 per year), three percent for transit and U.S. gas stations and one percent for other eligible purchases. This card offers other perks such as $120 toward an Equinox+ subscription, car rental insurance, special entertainment experiences and returns protection.
The card offers a $350 welcome bonus if your charges reach $3,000 within six months of account opening. You can also get an introductory APR of zero percent for purchases during the first 12 billing cycles (13.99 to 23.99 percent variable APR after). View this American Express page to see which terms apply and to submit an application.
While the rewards rate is lower than for other cashback rewards cards, the Citi Double Cash Mastercard is the best card for flexibility since it has no specific spending categories or spending caps.
2. Capital One Savor Rewards
Designed for big spenders of entertainment and dining, the Capital One Savor Rewards card comes with a $95 annual fee and excellent credit score requirement.
The rewards program gives you four percent back for entertainment purchases such as streaming subscriptions and restaurant visits and three percent back at U.S. supermarkets. You'll get one percent back at other retailers. Redemption options include receiving funds on PayPal, spending rewards on Amazon.com, choosing gift cards and getting statement credits.
Capital One has a sign-up bonus of $300 for new cardholders spending $3,000 the first 90 days. There's no special intro APR, so you'll pay 15.99 to 23.99 percent from the start. You can apply for this cash-back rewards card here.
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3. Bank of America Customized Cash Rewards
The Bank of America Customized Cash Rewards credit card is a Visa Signature card with no annual fee. It stands out for having the option to choose your top reward category.
While wholesale clubs like Costco and grocery stores feature two percent earning rates, you can opt to get 3 percent back for online shopping, gas station purchases, home improvement stores, restaurants, drugstore purchases or travel purchases. Everything else yields one percent back. Further opportunities exist for bonus rewards.
You benefit from no interest charges for 15 months for balance transfers and purchases and then 13.99 to 23.99 percent interest rates thereafter. After account opening, you can get $200 back for spending $1,000 in three months. You can see terms and apply here.
4. Citi Double Cash Card
While the rewards rate is lower than for other cashback rewards cards, the Citi Double Cash Mastercard is the best card for flexibility since it has no specific spending categories or spending caps. You also won't pay an annual fee.
The card both gives you one percent back on any purchase when it's made and again when you pay off the card for a total two percent reward. The catch is you have to pay on time to receive the second reward. Citi offers flexible redemption options once you've accrued $25 in rewards, and you get additional perks such as special entertainment experiences.
The Double Cash card has a 13.99 to 23.99 percent interest rate, but Citi offers a promotion where you can pay no interest on balance transfers during the first 18 months (a three percent fee applies). You can discover more and apply now on this page.
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