Many credit cards offer the possibility of getting cash back, but not all programs are the same. There are so many options out there that it might be hard to decide which one is the best for you. Read on and learn everything about the best 3 Cash Back credit cards.
Cash back credit cards have great reward programs, and the best part is that you don’t get points that you later have to redeem, you can get actual money. Credit card issuers compete against each other to see which one offers the best reward program, as this is usually the main factor that sets them apart. Let’s analyze the main options:
1. Capital One® Quicksilver® Cash Rewards Credit Card
This one offers a simple reward program with no annual fee and it allows you to cash in on everyday expenses. You can earn to 1.5% cashback on every single one of your purchases, no cap to the amount. Cash back amount is automatically applied to your statement every time it reaches a certain amount ($25, $50, $100 or $200). Keep in mind that in order to qualify for this card, you need to have an excellent credit score.
2. Discover it® Cash Back
This card allows you to earn up to 5% cash back each quarter at a variety of places such as grocery stores, restaurants, gas stations, etc. On top of that, you can earn a 1% cash back on all of your other purchases. If you want to apply and become a cardmember, you need to consider that Discover is not as widely accepted as a MasterCard or Visa. But a great feature is that during the first year, you get a dollar-for-dollar match.
3. Blue Cash Preferred® Card from American Express
This is a great option if you mainly use the card in the supermarket or at gas stations in the U.S. You can get up to 6% cash back at supermarkets or up to $6,000 per year in purchases, 3% cash back at gas stations and 1% cash back in all of your other purchases.
Before deciding which card works best for you, you need to know the three different types available:
A) Flat rate cash back cards, which offer unlimited rewards on all purchases (usually 1-2%) with the flexibility to use them wherever and whenever you want.
B) Tiered cash back cards, which offer rewards in specific categories, usually with an earning limit, and a lower rate (around 1%) on other purchases
C) Bonus category cards, which offer a high rate reward (around 5-6%) on spending categories that change periodically and a lower rate (around 1%) on other purchases.
Make sure you track your spending habits and use that information to determine which one is the best option for you!