5 Best Cash Back Credit Cards for 2024

Contents

1.Wells Fargo Active Cash® Card 2.Capital One SavorOne Cash Rewards Credit Card 3.Blue Cash Everyday® Card from American Express 4.Discover it® Cash Back 5.Citi Double Cash® Card What is a cash back credit card?Pros and cons of using cash back credit cards Pros credit cards credit cards Cons

Cash back credit cards earn a small percentage of your purchases back, redeemable in the form of statement credits, gift cards, direct deposits or more. Many of these cards earn cash back on eligible categories automatically, with some requiring quarterly activations to achieve the highest rate. The best cash back cards on the market offer high cash back rates and flexible reward categories, letting you earn anywhere from 1 percent to 6 percent cash back on common spending items, including travel, groceries, gas and more. Here are the best cash back cards on the market for May 2024.

1.Wells Fargo Active Cash® Card

Image of Capital One SavorOne Cash Rewards Credit Card

2.Capital One SavorOne Cash Rewards Credit Card

Image of Blue Cash Everyday® Card from American Express

3.Blue Cash Everyday® Card from American Express

4.Discover it® Cash Back

5.Citi Double Cash® Card

What is a cash back credit card?

Cash back credit cards reward you for eligible purchases by giving you a percentage of your purchase price back.

For example, if you have a credit card that earns 5 percent back on eligible purchases, and you make a $100 purchase, you’ll earn 5 dollars to your account.

The flexibility, simplicity and ongoing value of cash back cards make them one of the more popular types of credit cards on the market. Chances are if you frequently spend on groceries, gas or other essentials, there’s a cash back card that’s a great fit for your wallet.

Pros and cons of using cash back credit cards

Pros credit cards

8 Different Types of Loans Explained

Earn rewards: If you pick a card that fits your spending habits, you can earn some extra cash every month just by using your credit card.
Build credit: Used responsibly, a cash back credit card can help you improve your credit score by adding to your credit history.
Many have no annual fee: If you choose a no-annual-fee card, you won’t have to worry about whether you’re coming out ahead with your cash back earnings (as long as you pay your bill in full each month).
Sign-up bonuses: A first-year sign-up bonus or welcome offer can be worth a few hundred dollars if you can meet the spending requirement.

credit cards Cons

Travel rewards can be more valuable: With cash back cards, you usually can’t score a particularly lucrative deal with your redemption, as you might when redeeming travel rewards points for a flight.
Higher APRs: Rewards cards typically come with higher interest rates, so carrying a balance can eat through any value you’d get via rewards. Some cards also hit you with a higher penalty APR if you are late making a payment, which can last a year or more.
Can be high maintenance: Some cards require you to periodically activate or enroll in your cash back category to earn cash back rewards.
Fewer travel perks: You might not see a ton of travel benefits on cash back cards, like lounge access, free hotel room upgrades or a TSA Precheck application statement credit.