The Best Cash Back Credit Card Rewards
Published 12/16/07 (Modified 12/17/13)
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 ThankYou 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 ThankYou 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.
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 Everyday Card 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® Card from American Express - Earn Cash Back: 3% at US supermarkets, up to $6,000 per year in purchases, 2% at US gas stations & select US department stores, 1% on other purchases. Terms and limitations apply. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit. Terms and Restrictions Apply.
- Chase Freedom® - Enroll each quarter to earn 5% cash back in rotating categories that change every 3 months such as gas stations, restaurants and more, subject to quarterly maximum spend. You get 1% cash back for all other purchases.
- TrueEarnings® Card from Costco and American Express - This very popular Amex card offer from Costco allows you to earn 3 percent cash back on gasoline at US gas stations and on gasoline at Costco up to $4,000 per year in purchases, then 1%; 2 percent cash back at US restaurants; 2 percent cash back on eligible travel purchases, including at Costco; 1 percent cash back on other purchases, including at Costco. Terms and limitations apply. You will receive your cash back in the form of an annual reward coupon. There is no annual fee with a paid Costco membership. Terms and Restrictions Apply.
- 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 up to $25,000. The more frequently you use the card, the higher your chances of hitting the recurring monthly jackpot.
- Fidelity Investment Rewards Visa Signature Card - Earn 1.5% back for each $1 spent on the first $15,000 in purchases each year. 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 $50 cash and deposited into your Fidelity Investment brokerage account. The Fidelity credit card offers the same competitive purchase rebate percentage for all purchases. This card is definitely not your usual straight cash back credit card.