Start Chat
Search
Ithy Logo

Top Cashback Credit Cards: A Comprehensive Analysis (December 2024)

Choosing the right cashback credit card can significantly impact your finances, offering a way to earn rewards on everyday spending. This analysis, compiled from multiple expert sources, provides a detailed look at the top cashback credit cards available as of December 2024. We'll explore their cashback percentages, annual fees, eligibility criteria, benefits, limitations, and overall internet consensus to help you make an informed decision.

Understanding Cashback Credit Card Structures

Cashback credit cards generally offer rewards in a few primary structures:

  • Flat-Rate Cashback: These cards offer a consistent cashback percentage on all purchases, making them simple and predictable.
  • Tiered Cashback: These cards offer different cashback percentages based on the category of purchase, such as dining, groceries, or travel.
  • Rotating Category Cashback: These cards offer higher cashback percentages in specific categories that change each quarter, often requiring activation.

Top Cashback Credit Cards

1. Wells Fargo Active Cash® Card

  • Cashback Percentage: 2% unlimited cash back on all purchases.
  • Annual Fee: $0.
  • Eligibility Criteria: Good to excellent credit (typically a FICO score of 670 or higher).
  • Benefits:
    • Simple, flat-rate cashback with no rotating categories or spending limits.
    • $200 welcome bonus after spending $500 in the first 3 months.
    • 0% intro APR for 15 months on purchases and qualifying balance transfers.
    • No foreign transaction fees.
    • Cell phone protection (up to $600) when paying your phone bill with the card.
  • Limitations:
    • No elevated cashback rates for specific categories.
    • Balance transfer fee: 3% for the first 120 days, then 5%.
  • Internet Consensus: Highly praised for its simplicity and flat-rate cashback, making it ideal for users who prefer straightforward rewards.

2. Citi Double Cash® Card

  • Cashback Percentage: 2% total cash back (1% when you buy, 1% when you pay).
  • Annual Fee: $0.
  • Eligibility Criteria: Good to excellent credit (FICO score of 670+).
  • Benefits:
    • Straightforward rewards structure.
    • No caps on cashback earnings.
    • Option to convert cashback into Citi ThankYou® Points for additional redemption flexibility.
  • Limitations:
    • No sign-up bonus.
    • Foreign transaction fee: 3%.
  • Internet Consensus: Highly regarded for its simplicity and high flat-rate cashback. A top choice for those who pay their balances in full.

3. Chase Freedom Unlimited®

  • Cashback Percentage:
    • 5% on travel purchased through Chase Ultimate Rewards®.
    • 3% on dining and drugstore purchases.
    • 1.5% on all other purchases.
    • Additional 1.5% on up to $20,000 spent in the first year.
  • Annual Fee: $0.
  • Eligibility Criteria: Good to excellent credit required (FICO score of 670+).
  • Benefits:
    • $200 bonus after spending $500 in the first 3 months.
    • 0% intro APR for 15 months on purchases and balance transfers.
    • Cashback can be redeemed for travel, gift cards, or statement credits.
  • Limitations:
    • Requires use of Chase Ultimate Rewards® portal for maximum travel cashback.
    • Foreign transaction fee: 3%.
    • The additional 1.5% cash back is capped at $20,000 in the first year.
  • Internet Consensus: Popular for its tiered rewards structure and integration with Chase's travel portal.

4. Discover it® Cash Back

  • Cashback Percentage:
    • 5% on rotating quarterly categories (e.g., grocery stores, gas stations, restaurants, etc.) on up to $1,500 in purchases per quarter (activation required).
    • 1% on all other purchases.
  • Annual Fee: $0.
  • Eligibility Criteria: Requires good to excellent credit (FICO score of 670+).
  • Benefits:
    • Cashback Match: Discover matches all cashback earned in the first year.
    • No foreign transaction fees.
    • Free FICO score monitoring.
  • Limitations:
    • Rotating categories require activation.
    • Quarterly spending cap on 5% categories.
    • Not as widely accepted internationally as Visa/Mastercard.
  • Internet Consensus: Highly praised for its first-year Cashback Match, but the rotating categories may not suit everyone. Best for beginners due to its straightforward cashback match program.

5. Blue Cash Preferred® Card from American Express

  • Cashback Percentage:
    • 6% on U.S. supermarkets (up to $6,000 annually, then 1%).
    • 6% on select U.S. streaming subscriptions.
    • 3% on U.S. transit (e.g., taxis, rideshares, parking).
    • 3% on U.S. gas stations.
    • 1% on all other purchases.
  • Annual Fee: $95 (waived for the first year in some offers).
  • Eligibility Criteria: Good to excellent credit required (FICO score of 670+).
  • Benefits:
    • $250 welcome bonus after spending $3,000 in the first 6 months.
    • Purchase protection and extended warranty coverage.
    • Access to Amex Offers for additional savings.
  • Limitations:
    • High annual fee after the first year.
    • Foreign transaction fee: 2.7%.
    • Cashback categories are U.S.-centric.
    • Cashback caps on supermarkets.
  • Internet Consensus: Best for families and households with high grocery and streaming expenses. The high annual fee might deter infrequent spenders.

6. U.S. Bank Cash+® Visa Signature® Card

  • Cashback Percentage:
    • 5% on two categories of your choice (up to $2,000 in combined purchases per quarter).
    • 2% on one everyday category (e.g., gas stations, grocery stores, restaurants).
    • 1% on all other purchases.
  • Annual Fee: $0.
  • Eligibility Criteria: Good to excellent credit required (FICO score of 670+).
  • Benefits:
    • $200 bonus after spending $1,000 in the first 120 days.
    • Customizable cashback categories.
    • No foreign transaction fees.
  • Limitations:
    • Requires category selection each quarter.
    • Spending cap on 5% categories.
  • Internet Consensus: Praised for its flexibility, but the quarterly activation process can be cumbersome.

7. Capital One Savor Cash Rewards Credit Card

  • Cashback Percentage:
    • 4% on dining, entertainment, and popular streaming services.
    • 3% at grocery stores (excluding superstores like Walmart® and Target®).
    • 1% on all other purchases.
  • Annual Fee: $95 (waived for the first year).
  • Eligibility Criteria: Excellent credit required (FICO score of 740+).
  • Benefits:
    • $300 bonus after spending $3,000 in the first 3 months.
    • No foreign transaction fees.
    • Complimentary concierge services.
  • Limitations:
    • High annual fee after the first year.
    • Limited elevated cashback categories.
    • Excludes superstores from the grocery category.
  • Internet Consensus: Best for foodies and entertainment lovers, but the high annual fee may deter casual spenders.

8. Citi Custom Cash® Card

  • Cashback Percentage: 5% cash back on purchases in your top eligible spend category each billing cycle (up to the first $500 spent), and 1% cash back on all other purchases.
  • Annual Fee: $0.
  • Eligibility Criteria: Open to applicants with good credit.
  • Benefits: Automatic 5% cash back in the category where you spend the most each month, with no need to activate categories.
  • Limitations: The 5% cash back is capped at $500 spent in the top eligible category each billing cycle.

9. Blue Cash Everyday® Card from American Express

  • Cashback Percentage:
    • 3% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
    • 2% cash back at U.S. gas stations and select U.S. department stores.
    • 1% cash back on other purchases.
  • Annual Fee: $0.
  • Eligibility Criteria: Not specified in the provided data, but typically requires good to excellent credit.
  • Benefits:
    • No annual fee.
    • High cashback rate at supermarkets and gas stations.
    • $200 Welcome Offer after you spend $2,000 in purchases on your new Card within the first 6 months.
  • Limitations:
    • 3% cashback at supermarkets is capped at $6,000 per year.
  • Internet Consensus: Popular for those who want high cashback on everyday spending without an annual fee. Often recommended for those who do not want to manage category spending.

10. Capital One Quicksilver Cash Rewards Card

  • Cashback Percentage: 1.5% cash back on all purchases.
  • Annual Fee: $0.
  • Eligibility Criteria: Not specified in the provided data, but typically requires good to excellent credit.
  • Benefits:
    • No annual fee.
    • Flat rate cashback on all purchases.
    • Earn $200 Cash Back after spending $500 on purchases within 3 months from account opening.
  • Limitations: No category-specific bonuses.
  • Internet Consensus: Highly valued for its simplicity and no annual fee. Often recommended for those who prefer a straightforward cashback structure.

11. Amazon Business American Express Card

  • Cashback Percentage:
    • 3% back on purchases at Amazon.com and Whole Foods Market.
    • 2% back at U.S. restaurants, U.S. gas stations, and on wireless telephone services purchased directly from U.S. service providers.
    • 1% back on other purchases.
  • Annual Fee: $0.
  • Eligibility Criteria: Not specified in the provided data, but typically requires good to excellent credit.
  • Benefits:
    • No annual fee.
    • High cashback rates on Amazon and Whole Foods purchases.
    • Get a $100 Amazon Gift Card upon approval.
  • Limitations: Limited to business use.
  • Internet Consensus: Highly recommended for business owners who frequently shop at Amazon and Whole Foods. The no annual fee and immediate gift card upon approval are significant advantages.

12. Visa Platinum Cash Rewards from PenFed

  • Cashback Percentage:
    • 5% cash back on gas.
    • 0.25% cash back on all other purchases.
  • Annual Fee: $0.
  • Eligibility Criteria: Not specified in the provided data, but typically requires good to excellent credit.
  • Benefits:
    • No annual fee.
    • High cashback rate on gas.
  • Limitations:
    • Low cashback rate on non-gas purchases.
  • Internet Consensus: Often recommended for those with high gas spending. The low cashback on other purchases is a noted limitation.

13. Sallie Mae Mastercard

  • Cashback Percentage:
    • 5% cash back on the first $250/month on gas and groceries.
    • 5% cash back on the first $750/month on bookstore/Amazon purchases.
    • 1% cash back on all other purchases.
  • Annual Fee: $0.
  • Eligibility Criteria: Not specified in the provided data, but typically requires good to excellent credit.
  • Benefits:
    • No annual fee.
    • High cashback rates on specific categories with monthly caps.
  • Limitations:
    • Monthly caps on high cashback categories.
  • Internet Consensus: Recommended for those who can maximize the monthly caps on gas, groceries, and bookstore/Amazon purchases. The monthly limits are a noted drawback.

14. Chase Freedom Flex®

  • Cashback Rate:
    • 5% cash back on rotating categories (up to $1,500 per quarter, activation required).
    • 5% on travel booked through Chase Ultimate Rewards.
    • 3% on dining and drugstores.
    • 1% on all other purchases.
  • Annual Fee: $0.
  • Welcome Bonus: $200 after spending $500 in the first 3 months.
  • Eligibility Criteria: Good to excellent credit (FICO score 670+).
  • Additional Benefits:
    • Access to Chase Ultimate Rewards for travel redemptions.
    • Introductory APR of 0% for 15 months on purchases and balance transfers.
  • Limitations:
    • Requires activation of quarterly categories.
    • Rotating categories may not align with spending habits.
  • Internet Consensus: Versatile card with excellent bonus categories. Best for users who can maximize Chase Ultimate Rewards.

Ranking Based on Internet Consensus

Based on the consensus from various sources, here's a general ranking of these cards:

  1. Wells Fargo Active Cash® Card – Simplicity and no annual fee make it a top choice for straightforward rewards.
  2. Citi Double Cash® Card – High flat-rate cashback and no annual fee, ideal for those who pay their balances in full.
  3. Chase Freedom Unlimited® – Versatile rewards and robust travel benefits, particularly for those who use Chase Ultimate Rewards.
  4. Chase Freedom Flex® - Versatile card with excellent bonus categories. Best for users who can maximize Chase Ultimate Rewards.
  5. Discover it® Cash Back – Exceptional first-year Cashback Match, best for those who can manage rotating categories.
  6. Blue Cash Preferred® Card from American Express – Best for families with high grocery and streaming expenses, despite the annual fee.
  7. Blue Cash Everyday® Card from American Express - Popular for its no annual fee and high cashback on everyday spending.
  8. Capital One Quicksilver Cash Rewards Card - Valued for its simplicity and no annual fee.
  9. U.S. Bank Cash+® Visa Signature® Card – Highly customizable but requires user management of quarterly categories.
  10. Capital One Savor Cash Rewards Credit Card – Great for dining and entertainment but has a high annual fee after the first year.
  11. Amazon Business American Express Card - Highly recommended for business owners with frequent Amazon and Whole Foods purchases.
  12. Visa Platinum Cash Rewards from PenFed - Recommended for high gas spenders.
  13. Sallie Mae Mastercard - Recommended for those who can maximize monthly caps on specific categories.

Key Industry Trends

  • Annual Fees: Most cashback cards have no annual fee, while those with fees are generally under $200.
  • Reward Structures: Cards typically offer flat-rate rewards, category-specific bonuses (up to 6% in select categories), or rotating quarterly bonus categories.
  • Redemption Features: Statement credits typically post within 2 billing cycles, most programs require accounts to be in good standing, and some cards have minimum redemption thresholds.

Conclusion

The best cashback credit card for you depends on your individual spending habits and preferences. For those seeking simplicity and a high flat-rate cashback, the Wells Fargo Active Cash® Card and Citi Double Cash® Card are excellent choices. If you're willing to manage rotating categories, the Discover it® Cash Back and Chase Freedom Flex® offer high rewards. Families with significant grocery and streaming expenses should consider the Blue Cash Preferred® Card from American Express. The Chase Freedom Unlimited® is a strong contender for its versatile rewards and travel benefits. For dining and entertainment enthusiasts, the Capital One Savor Cash Rewards Credit Card is a good option, though the annual fee should be considered. Business owners who frequently shop at Amazon and Whole Foods should consider the Amazon Business American Express Card. Finally, those with high gas spending may benefit from the Visa Platinum Cash Rewards from PenFed, and those who can maximize monthly caps on specific categories may benefit from the Sallie Mae Mastercard.

Always verify current terms directly with card issuers before applying, as specific APRs and terms may vary based on creditworthiness and market conditions.


December 18, 2024
Ask Ithy AI
Download Article
Delete Article
Help|Privacy|Terms