Are you tired of not getting rewarded for your everyday spending? A cash back credit card might be the solution you’re looking for. These types of credit cards offer a percentage of your spending back to you in cash, allowing you to earn money on everything from groceries to gas. 

In this article, we’ll explain how they work, the benefits and drawbacks, and how to choose the right one for you. Whether you’re a savvy spender or a beginner to credit cards, this article has something for everyone. So if you’re ready to start getting paid for your purchases, read on to learn more about top cash back credit cards.

What is it and How Does it work?

A cash back credit card is a type of credit card that offers cash incentives to cardholders in exchange for a portion of their spending. 

For instance, if a credit card has a 1% cash back rate and you use it to make $100 in purchases, you will get $1 in cash back. Some credit cards with cash back offer a fixed percentage of cash back on all purchases, while others offer varying rates for various purchases. 

For instance, a credit card may provide a higher cash back rate on purchases of groceries or gas.

People who consistently and reliably pay off their monthly credit card balances in full may benefit from using a cash-back credit card. Although there are many credit cards that provide cash back rewards, it is crucial to evaluate their terms and conditions to select the one that best suits your needs. 

Pros and Cons of Using These Types of Cards

Pros

One of the best things about a cash-back credit card is that you can earn money on the things you buy. Depending on the card and what you buy, you can get anywhere from 1% to 5% of your spending back in cash. This can add up quickly, especially if you use some of the best cash back credit cards for everyday spending.

For example, if you have a cash-back credit card that gives you 2% back on all purchases and you use it to buy $500 a month, you could get $10 back each month or $120 a year.

Cons

But there are some things to think about regarding cash-back credit cards. One of the main cons is that interest rates could be high. If you don’t pay off your credit card balance in full every month, the interest charges can quickly wipe out any cash back you earn. 

Another thing to think about is how hard the cash back rewards program is to use. Some cash-back credit cards have complicated reward systems, with different rates for different types of purchases and limits on how much cash back you can earn. 

Top Cash Back Credit Cards in the US Now

There are several credit cards that offer cash back rewards in the United States. Some popular options include:

1. Chase Freedom Unlimited

The standard cash back card does not offer as many bonus benefits as the travel rewards card with this particular credit card. Its cash back rate of 1.5 percent on all purchases that do not fit into bonus categories is also greater than the standard cash back rate of 1 percent that is offered by other cash back cards with bonus categories.

• Pros: The spending requirement to receive the maximum value is far higher than what you’ll find with other sign-up bonuses, even though it comes with one of the most valuable sign-up incentives currently available.
• Cons: This card offers significant benefits for trip bookings; but, since it assesses a fee of 3% on all foreign transactions, it is not an ideal companion while traveling.

Who is this for?

This is one of the best cash back credit cards with no annual fee, and want to keep a single everyday rewards card.

This is also for regular travelers who want to avoid annual fees and earn rewards at a high rate on more than just airline, hotel, and rental car bookings are suitable candidates for this card.

2. Wells Fargo Active Cash Card

Not only does it have an excellent rewards rate, but it also provides insurance for your mobile device, which is a huge plus. When you use your card to pay your monthly mobile bill, you’ll get up to $600 in insurance against covered damage or theft.

• Pros: All purchases receive 2% cash rewards, among the best in their class. It also offers a 0% initial APR on purchases and balance transfers for 15 months from account opening on eligible balance transfers, followed by a 19.24%, 24.24%, or 29.24% variable APR.
• Cons: If you don’t mind tiered or rotating rewards, you can get higher cash-back rates in popular purchasing areas. This card’s foreign transaction charge makes it unsuitable for international travel, like many cash-back cards.

Who is this for?

If you’re looking for top credit cards for cash back, this is for you. This card is for simplicity-seekers and big-ticket buyers. The card’s initial APR offer lets you earn consistent cash rewards and reduce new purchase interest.

3. Capital One SavorOne Cash Rewards Credit Card

Tickets to concerts, movies, sports games, theme parks, and tourist attractions are all eligible purchases that would only earn 1 percent back with most other cash back cards, but with the SavorOne Cash Rewards Card, you can earn up to 3 percent back on these types of transactions.

• Pros: Capital One Entertainment purchases receive 8% back and eating, grocery stores, qualified streaming services, and entertainment 3%. Other purchases get 1% back. The sign-up bonus and intro APR deal are generous. A card with no annual charge offers a lot.
• Cons: If you spend more on one food category—dining out or cooking at home—you may benefit from a card specializing in that department.

Who is this for?

The people who will get the most use out of this card are the ones who like to eat out, shop, and mingle.

Final Words

Finally, cash back credit cards might be a terrific option for people who wish to receive rewards on routine expenditures. In the United States, there are various top cash back credit cards available, each with its own set of features and perks. 

When selecting the highest cash back credit cards, keep the rewards rate, any annual fees, and any restrictions on earning or redeeming rewards in mind. You can maximize your benefits and save money on everyday purchases by carefully comparing and selecting the proper cash back credit card.