The Best Cash Back Credit Card Rewards
December 16 2007
By MoneyBlueBook
Updated List Of The Best Cash Back Credit Card Offers Below!
As I indicated in the past, I'm a big fan of integrated credit card reward programs like Citi Card's Thank You Rewards Network. I like how all of their reward credit cards generate Thank You rewards that can be pooled into one source and later redeemed for rewards like cash back, statement credit, airline tickets, and popular merchandise. Years ago, you could get a higher cash back percentage with your credit cards, but times have changed as companies have cut and reduced their cash back benefits in favor of encouraging reward point usage. But many people still prefer to stick with cash back cards. Cash back rebates are easier than reward points to understand and despite the slightly lower percentage back offered by the former, many people still favor the convenience and simplicity that cash back reward credit cards provide.
People Like Cash Back Cards Because They Are Much Easier To Use and Redeem Than Reward Cards
I personally don't mind using credit cards that offer reward points, but I'll admit that it does involve more micromanaging. I've been accumulating Citi Thank You rewards for more than a year now and have accumulated a substantial stockpile of points, enough for an international airplane ticket to Asia and more. But the process requires me to monitor my point progression to ensure my points are not near expiration since accrued reward points do expire after some time if not timely redeemed.
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Upon close inspection of all credit card reward and cash back programs, it's apparent that a prudent user who doesn't mind some extra work will find that reward point cards tend to yield a slightly higher percentage back. Unlike cash back credit cards, reward point cards do usually require you to keep track of your own tallies and affirmatively submit a request when you qualify for point redemption. But despite the higher returns, some people still find the redemption procedure of reward cards to be too much trouble - instead, preferring the simplicity of automatic cash back credit. It's true - with cash back credit cards there is no hassle. When you charge something, you automatically get a portion back as statement credit or a cash back check after a certain period of time. You don't have to do anything extra because the whole cash rebate earning process is usually automated.
Well after much research, here's what I've come up with. The best cash back credit card is definitively either the Chase Freedom or Blue Cash From American Express, but there are several good choices as well.
My List of The Top Credit Cards That Provide The Best Cash Back Reward Percentages:
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- Blue Cash Everyday From American Express - Get 3% cash back at supermarkets, 2% cash back at gas stations and department stores, and 1% cash back on all other purchases. No spend minimum, No enrollment, and No rotating rewards categories.
- Discover More Card - Earn up to 5% cash back for Get More purchases made in categories that change throughout the year, like groceries, travel, home, apparel, gas, restaurants, and movies. Earn up to 1% cash back for the first $3000 worth of purchases.
- Discover Open Road Card - $150 Restaurant.com Gift Certificate - Get a free $150 Restaurant.com Gift Certificate with first purchase. Earn 2% Cashback Bonus automatically at any gas station and any restaurant, and up to 1% cash back on all other purchases. Enjoy 0% purchase and balance transfer benefits for the first 12 months with no annual fee.
- Chase Freedom Visa - $100 Bonus Cash Back - Earn 5% cash back in rotating categories such as gas, groceries, drug stores, home improvement, department stores, and more. You get 1% cashback for everything else with no spending tiers, no earning caps or limits, and no cash rebate expiration.
- True Earnings Card From Costco and American Express - This very popular Amex card offer from Costco allows you to earn 3% cash back for annual gasoline purchases of up to $3,000 (1% thereafter), 3% for restaurants, 2% for travel, 1% everywhere else, including Costco. As a special introductory offer, you also get a free $25 bonus after your first card purchase. Currently there is no annual fee with a paid Costco membership.
- Discover Motiva Card - Earn up to 1% cash back on all of your purchases, plus get one month's interest refunded back to your account every time you make your card payments on time for 6 consecutive months. This card program actively incentivizes and encourages you to pay on time by rewarding you when you do so. There is no annual fee to contend with.
- American DreamCard MasterCard - The American Dream Card (provided by HSBC) is not your typical direct cash back reward card, but it offers something similarly attractive in return. Rather than getting a mere rate of 1% or 3% cash back on all of your daily purchases, for every single dollar you spend with the card, you earn a single entry into the American Dream Card monthly prize drawing, with the chance to win at least $25,000 or more each time depending on the total amount of charges by all entrants during the period. The more frequently you use the card, the higher your chances of hitting the recurring monthly jackpot.
- Capital One No Hassle Cash(SM) Rewards Card - Up to 3% cash back on gas and groceries, and 1% cash back on all other purchases. There is no limit to how much cash back rewards you can earn, nor is there an expiration date.
- Fidelity Investment Rewards Visa Signature Card - Earn 1.5% back on all purchases. With this card you earn a point for every dollar spent. When you've accumulated 5000 points, the total points can be instantly converted into $75 cash and deposited into your Fidelity Investment brokerage account for an effective 1.5% redemption rate. The Fidelity credit card offers the same competitive purchase rebate percentage for all purchases.
- Advanta Net 90 Platinum Business Card - This card is definitely not your usual straight cash back credit card offer and there is no other program out there quite like it. The permanent 90 day interest free rolling offer on all credit card purchases advertised by this program is not a limited one time introductory offer, but a constant year after year feature. Not only do you get to earn the equivalent of 1% cashback on all purchases made (1 point for each $1 of card usage) with no limit on reward earning potential, cardholders also enjoy a 3 month (90 days) grace period on their bill. What this means is that as the cardholder, you are exempt from paying any interest on new purchases until after 90 days that's a whole quarter worth of savings, thanks to this very attractive Advanta Platinum card offer.
December 16, 2007 at 2:41 pm
I recently redeemed some reward points. It was a small hassle, but everything went pretty smoothly. And it financed a couple date nights, which was happy. :)
December 16, 2007 at 7:00 pm
I think reward cards give a better percentage back than cash back only cards, but they do require much more work and management. I wish there was an easier way to manage point expiration - like a Yodlee for card reward programs.
June 8, 2008 at 1:51 pm
I like the Citibank Thank you network too but I wouldn't mind switching to a cash back crdit card, it really makes more sense.
June 14, 2008 at 1:39 pm
I have the American Express Blue. I'm considering switching to the Chase Freedom, because it looks like I would've gotten 3x more cash back. That you have to spend $6,500 before the 5% kicks is a major disadvantage of the American Express.
June 14, 2008 at 10:20 pm
Discover Open Road is the way to go! They give rewards in a form of cash back for gas purchases and pretty much any auto-related purchases. Check it out
June 25, 2008 at 12:51 am
I recommend taking a look at the USAA cash rewards or the USAA Total Rewards card - run by the United Services Auto Association.
I think the USAA credit cards offer something like 1.25% or 1.50% cash back rewards (I forget which). I recall their APR interest offer was something like 6.75% for purchases. Not a bad cash back credit card offer with low interest rate too...
January 9, 2009 at 11:10 pm
I have both the Chase Freedom and the HSBC Platinum 2% cash back card and I love them both. The HSBC one is really cool because I get cash back on any online purchase or for that matter on the shipping charges of the products I buy.
I use the Chase Freedom for bills and for the other top 4 categories and that gives me a 3% back. Its really sad that Walmart and Kroger are not in the top 5 categories of Chase Freedom.
January 13, 2009 at 11:15 am
If you are anything like me (charge EVERYTHING to get rewards) and have substantial gas and grocery charges then this is your card. 5% back on Gas AND Groceries, plus 1.5% on everything else. Just about EVERYONE takes AMEX now. I previously had airline cards, this past year we charged enough on AMEX to earn 2.5 Southwest Airlines tickets if we were still on their card, but earned $950 cash back. I've never paid more than $300 for a SWA ticket, so we definitely came out ahead!
January 15, 2009 at 3:26 am
Nice article,I love it, Thansk for sharing
March 4, 2009 at 6:24 pm
I have two of the top three cards on you list - and they are both great for specific purposes.
I was disappointed to see that there was a relative newcomer that was not mentioned. The Charles Schwab Visa offers a straight up 2% refund on all purchases to a Charles Schwab Investment Account.
Their biggest benefit to those who travel - There are no foreign currency transaction fees. To those of us living, working or traveling overseas, this increases our cash back potential exponentially.
Martin C. also make a great point about the USAA MasterCard. USAA is an excellent card.
And I'm really interested in the Advanta Net 90 Platinum Business Card. That sounds like a fantastic alternative.
May 19, 2009 at 5:17 pm
Where are the links to some of these cash back credit card offers? Is the Discover Card purchase card the only one left? This is why I hate the new governmental approach to tackling the credit crisis. Taking down the credit card companies by enacting harsher and stricter credit card bill of rights or whatever will only serve to damage and punish responsible credit card users like myself. No one realizes this as they are all blinded by their dislike of the big-bad credit card companies. It's truly a double edged blade....
Eventually if this keeps up, the card issuers will pull away all of their lucrative cashback credit card programs and leave us with nothing. Quite frustrating....
July 7, 2009 at 11:32 am
schwab has 2% back no limits with no yearly fee. deal only works if you have a brokerage account though.
October 4, 2009 at 5:38 pm
I have used the Chase Freedom card for a couple of years. Their customer service stinks. They treat their customers like dirt.
October 4, 2009 at 5:40 pm
I have had the Discover card since 1985. They are very intune with their customers. They will do everything they can to make you happy. Good card.
October 8, 2009 at 3:05 am
I have had a Discover card for 8 years and its one of the best credit cards I carry. They are constantly mixing in new offers and maintain 5% rewards unlike all the other card companies. Also, they have great customer service and I genuinely feel they care about me as a customer.
November 3, 2009 at 12:04 pm
Discover says up to 1% cash back... Well, not really, 1/4% for first $1500, 1/2% for second $1500. You Don't get 1% until over $3000 every month. Typical hidden facts.
December 7, 2009 at 4:20 pm
Chase just got rid of their Freedom card and "upgraded" everyone to the Saphire card whose rewards are not nearly as good. This card is no longer a great rewards card