Best Cash Back Credit Cards of 2021

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Last updated on December 21, 2020

Want to save money? Try using a cash back credit card. These little pieces of plastic can help you spend responsibly while earning a little extra bribe when used correctly. While you may not be able to earn 5% cash back, the strategic use of credit cards can help you maximize your purchases. This includes reviewing spending in bonus categories and reviewing the fine print for maximum spending.

Keep in mind that for a credit card with rewards programs to be worth it, you need to pay your bill on time and in full each month to avoid interest charges and late fees. Otherwise, you are essentially paying for these rewards.

Read also: An alternative to cash back credit cards? Dosh Cash Back app review

Before signing up for any type of cash back rewards card, take a look at our list of the best we’ve found.

Best Cash Back Credit Cards

1. American Express Blue Cash Preferred® Card

Yes, there is an annual fee of $ 95, but the value you can get from this card far exceeds what you will pay up front. The American Express Blue Cash Preferred® card is the one with bonus categories that you will most likely use for daily expenses like food and gas.

Cash Back Rewards are earned only on qualifying purchases in the following categories:

  • 6% cash back in U.S. supermarkets, up to $ 6,000 per year in purchases
  • 6% cash back on select US streaming services (like Netflix, Hulu and others)
  • 3% cash back at U.S. gas stations
  • 3% discount on ground transportation
  • 1% cash back on all other purchases

You don’t need to sign up for rotating categories, which is typical of other credit cards that have high income categories. All cash back winnings are received in the form of reward dollars which can be redeemed as a credit on the statement.

If you are a new cardholder, you can receive a bonus of $ 300 after spending $ 3,000 on purchases in the first six months. You will receive the $ 300 back in the form of statement credits.

>> Learn more about this credit card offer


2. Capital One® Savour® Cash Rewards credit card

Food and entertainment enthusiasts will really like this card as it offers a substantial cash back offer. You can also receive a sign up bonus of $ 300 after spending $ 3,000 in the first three months.

The breakdown of cash back rewards earned on purchases is also quite generous:

  • 4% cash back on meals and entertainment
  • 2% cash back in grocery stores
  • 1% cash back on everything else

There is an annual fee of $ 95, but there are no rotating categories to worry about and the rewards never expire during the life of the account.

>> Learn more about this credit card offer


3. American Express Blue Cash Everyday® Card

Blue Cash every day

If you’re looking to avoid paying annual fees, you can still get decent cash back rewards with this credit card.

The cash back percentages are a bit lower, but still very good:

  • 3% cash back in U.S. supermarkets, up to $ 6,000 per year in purchases
  • 2% cash back at U.S. gas stations
  • 2% Cash Back at Select U.S. Department Stores
  • 1% cash back on all other purchases

While you save on the annual fee, the rewards aren’t as good as the other cards on this list. You will earn a $ 150 sign up bonus after spending $ 1,000 on purchases on your new card in your first three months.

>> Learn more about this credit card offer


4. Capital One® Quicksilver® Cash Rewards credit card

With the Capital One® Quicksilver® Cash Rewards credit card, you earn 1.5% on all your purchases. There are no categories to remember or quarterly listings to fear. In other words, this card is a great choice if you are looking for a simple cash back program.

Cardholders can earn a one-time sign-up bonus of $ 150 after spending $ 500 on purchases in the first 3 months. There is no annual fee.

Plus, if you’re looking to make a large purchase, you can get an introductory 0% APR on purchases for 15 months.

>> Learn more about this credit card offer


5. Visa Signature Fidelity Rewards card

The Visa Signature Fidelity Rewards card works with a simple rewards structure: you’ll earn 2% unlimited cash back on every qualifying purchase. In other words, for every $ 2,500 you spend, you will receive $ 50. On top of that, there is no annual fee.

Cardholders will need a linked account with Fidelity, but these accounts are free and can be good choices for savers and investors. Rewards can be redeemed for statement credits, gift cards, travel, and merchandise.

>> Learn more about this credit card offer

Final thoughts

Cash back credit cards can get a bad rap among rewards enthusiasts because many believe there are better ways to maximize every purchase. After all, getting cash back might not bring in as many rewards as free flights and hotels. Plus, you can save time by earning cash back rewards rather than having to figure out how many points you need to redeem flights and do more research in general.

For my part, I started using cash back credit cards because it saved me money on some expenses. Last year I pooled my cash back rewards for Christmas presents, which helped offset a lot of the costs. Also, they tend to have lower annual fees than other cards, which is a budget lover’s dream.

Hopefully, one of the five credit cards on this list has sparked your interest, enough that you consider seeing if you can qualify for it. Which one are you going to consider?



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