Best Credit Cards in the US for Cashback

How Cashback Credit Cards Work

Cashback credit cards earn you a percentage of your spending as cash rewards. The mechanics are simple: you make a purchase, the issuer credits a percentage of that amount to your rewards balance, and you can later redeem that balance as a statement credit, direct deposit, or check. There are three main structures for cashback earnings. Flat-rate cards earn the same percentage on all purchases. The standard flat rate among top cards is 2% — double the 1% that was common a decade ago. Rotating category cards earn bonus cashback in specific categories that change every quarter, such as grocery stores, gas stations, or Amazon.com. These cards typically earn 5% on rotating categories up to a quarterly spending cap and 1% on everything else. Tiered category cards earn different rates on different types of spending, like 3% on groceries and 2% on gas, with no need to activate categories. Most cashback cards also offer a sign-up bonus — a lump sum of cashback after you spend a certain amount within the first few months. For example, a card might offer $200 cashback after you spend $500 in the first three months. Sign-up bonuses are often the most lucrative part of a cashback card, easily surpassing what you would earn from ongoing spending alone. Always factor in annual fees, foreign transaction fees, and whether the card requires good or excellent credit. Compare credit vs debit cards →

Best Flat-Rate Cashback Cards (Citi Double Cash, Wells Fargo Active Cash, PayPal Cashback)

Flat-rate cashback cards are the simplest and most versatile option. You earn the same rate on every purchase with no categories to activate, no spending caps to track, and no rotating schedules to remember. The Citi Double Cash card earns 2% cashback on every purchase — 1% when you buy and 1% when you pay. There is no annual fee, no rotating categories, and no limit on how much you can earn. The main drawback is that there is no sign-up bonus, though Citi occasionally offers targeted promotions. The Wells Fargo Active Cash card also earns an unlimited 2% cashback on all purchases but adds a sign-up bonus of $200 cash rewards after spending $500 in the first three months. It also offers cell phone protection if you pay your monthly bill with the card. The PayPal Cashback Mastercard earns 3% cashback on PayPal purchases and 1.5% on all other purchases. If you shop online frequently and use PayPal at checkout, this card can easily beat the 2% flat-rate cards. For international travelers, the Apple Card earns 2% cashback on Apple Pay purchases and has no foreign transaction fees. Each of these cards requires good to excellent credit. If your credit is limited, consider a secured card that transitions to a rewards card over time. See cards for beginners →

Best Rotating Category Cards (Chase Freedom Flex, Discover it)

Rotating category cards require a little more attention but can earn significantly more than flat-rate cards if you align your spending with the quarterly categories. The Chase Freedom Flex earns 5% cashback on rotating categories each quarter (on up to $1,500 in purchases), 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on everything else. It has no annual fee and offers a $200 sign-up bonus after spending $500 in the first three months. The rotating categories in recent years have included Amazon, grocery stores, gas stations, home improvement stores, and streaming services. The Discover it Cash Back uses a similar model — 5% cashback on rotating categories on up to $1,500 per quarter and 1% on everything else. Discover also offers a unique feature: it matches all cashback earned in the first year, effectively doubling your first-year earnings. If you earn $400 in cashback your first year, Discover adds another $400. The rotating categories vary between the two cards, so having both lets you cover more ground. The key to maximizing rotating category cards is to activate the categories each quarter. If you forget to activate, you earn only 1% instead of 5%. Set a calendar reminder for the first week of March, June, September, and December to activate the next quarter's categories. Also be aware of the $1,500 quarterly cap — once you exceed it, earnings drop to 1%. Avoid costly card mistakes →

Best Grocery and Gas Cards (Blue Cash Everyday, Amex)

Grocery and gas spending are two of the largest budget categories for most households. Cards that earn bonus rewards in these areas can add up to significant cashback over a year. The American Express Blue Cash Everyday earns 3% cashback at U.S. supermarkets on up to $6,000 in purchases per year, 3% at U.S. gas stations, 3% on U.S. online retail purchases, and 1% on everything else. It has no annual fee and offers a $200 statement credit after spending $2,000 in the first six months. The Blue Cash Preferred, which has a $95 annual fee (waived the first year), earns 6% at U.S. supermarkets on up to $6,000 per year, 6% on select U.S. streaming subscriptions, 3% at U.S. gas stations and transit, and 1% on everything else. The Preferred card makes sense if your grocery spending exceeds $3,000 per year — the extra 3% on that spending more than covers the annual fee. The Capital One SavorOne earns 3% on groceries, dining, entertainment, and streaming, with no annual fee and no spending caps. If you prefer a simpler approach, the Citi Custom Cash automatically earns 5% cashback on your top eligible spending category each billing cycle (up to $500), which can be set to groceries or gas. For dedicated gas cards, the Sam's Club Mastercard earns 5% on gas (up to $6,000 per year) with no annual fee for Sam's Club members. Learn credit score ranges →

Best Store Cards (Amazon, Target, Walmart)

Store credit cards reward loyalty with higher cashback rates at specific retailers. If you shop frequently at a particular store, the store-branded card can significantly outperform general-purpose cards. The Amazon Prime Visa earns 5% back on Amazon.com and Whole Foods purchases for Prime members, 2% at restaurants, gas stations, and drugstores, and 1% on everything else. For non-Prime members, the Amazon Visa earns 3% at Amazon and Whole Foods. With no annual fee (though Prime membership costs $139 per year), this card is a no-brainer for regular Amazon shoppers. The Target RedCard earns 5% off almost every purchase at Target, plus free two-day shipping on Target.com and an extra 30 days for returns. It is available as a credit card or a debit card that links to your checking account, so you can get the 5% discount without opening a credit account. The Walmart Rewards Card earns 5% cashback on Walmart.com purchases (including pickup and delivery), 2% at Walmart fuel stations and restaurants, and 1% everywhere else. The card has no annual fee. The key consideration with store cards is that they typically have higher interest rates and lower credit limits than general-purpose cards. They are best used by people who pay their balance in full each month. If you carry a balance, the interest charges can quickly wipe out the rewards you earn. Store cards also tend to have less valuable sign-up bonuses compared to bank-issued cards. How to increase credit limits →

How to Maximize Cashback

Earning maximum cashback requires a strategy known as card stacking — using different cards for different purchases to get the highest rate in each category. If you have a flat-rate 2% card, a rotating 5% category card, and a grocery 3% card, you rotate which card you use based on the purchase. This approach requires carrying multiple cards and tracking which ones to use where, but the extra earnings can be substantial. The next level of optimization involves gift card stacking. Stationery stores and office supply stores are often rotating categories on Chase Freedom Flex and Discover it. When these stores earn 5% cashback, you can buy gift cards for stores where you regularly shop — Amazon, Target, grocery stores — and effectively earn 5% on those purchases too. Portal stacking is another strategy. Shopping portals like Rakuten, Chase Ultimate Rewards, and Capital One Shopping offer additional cashback or points when you click through their links before making a purchase. You can combine portal earnings with your credit card cashback for double-dipping. For example, if Rakuten offers 5% back at Macy's and you pay with a 2% cashback card, you effectively earn 7% back. Pay attention to annual fees and caps. A card with a $95 annual fee needs enough bonus category spending to overcome that fee. A card that caps bonus earnings at $6,000 per year in groceries at 3% maxes out at $180 in extra earnings above a flat 2% rate — so the extra $60 may not justify a fee. Track your spending to determine which cards actually earn their keep. Build credit from scratch →

Cashback vs Points vs Miles

Cashback, points, and miles are the three main credit card reward currencies, and each has different strengths. Cashback is the most straightforward — you earn a percentage back as real money. It never loses value due to devaluation, and you can redeem it for statement credits, bank deposits, or paper checks. Cashback is best for people who want simplicity and guaranteed value. Points (like Chase Ultimate Rewards, American Express Membership Rewards, and Citi ThankYou Points) are more flexible but more complex. You can redeem points for cashback at a fixed rate (typically 1 cent per point), but you can often get more value by transferring them to travel partners. For example, 50,000 Chase points can be worth $500 as cashback or potentially $1,000 or more when transferred to airline partners like United or Hyatt. Miles are generally airline- or hotel-specific rewards that can only be redeemed with that specific loyalty program. Airline miles can be extraordinarily valuable — some redemptions achieve 5 to 10 cents per mile — but they require flexibility, patience, and expertise to maximize. The right choice depends on your goals. If you want cash in your pocket, choose cashback. If you travel frequently and want premium experiences, points and miles can unlock first-class flights and luxury hotels that cash cannot buy. Many people use a hybrid approach — cashback for everyday spending and a travel card for travel purchases. Credit vs debit card guide →

Common Cashback Mistakes

The biggest cashback mistake is carrying a balance and paying interest. If you carry a balance at 25% APR, every $1 of cashback costs you roughly $2.50 in interest over a year. Cashback rewards are meaningless if you are paying interest. Always pay your statement balance in full each month. Another common mistake is ignoring sign-up bonuses. The sign-up bonus is often the most valuable part of a card. A $200 bonus after $500 spending is effectively 40% cashback on that $500. Choose cards based on both their ongoing earning rates and their sign-up bonuses. Hitting the bonus spending cap too early is a mistake with rotating category cards. If your 5% category cap is $1,500 per quarter, you stop earning 5% once you cross that threshold. Spread your spending across the quarter to maximize bonus earnings. Not activating rotating categories is another common error — if you do not activate, you earn only 1% instead of 5%. Applying for too many cards too fast lowers your credit score and may disqualify you from new accounts due to the credit card issuer's own rules (such as Chase's 5/24 rule, which limits new accounts to five in 24 months). Finally, closing old cards without considering the impact on your credit history and utilization ratio can reduce your score and ultimately cost you more in interest than you save in annual fees. Improve your credit score →

FAQs

What is the best cashback credit card overall?

The best overall cashback card depends on your spending, but the Citi Double Cash and Wells Fargo Active Cash are top flat-rate options offering 2% on all purchases. If you want rotating categories, the Chase Freedom Flex and Discover it Cash Back offer 5% on quarterly categories with no annual fee.

Do cashback cards have annual fees?

Many cashback cards have no annual fee, including the Citi Double Cash, Chase Freedom Flex, Discover it Cash Back, and Capital One SavorOne. Some premium cashback cards like the Blue Cash Preferred have annual fees (typically $95) but offer higher earning rates that can offset the fee.

Can I have multiple cashback credit cards?

Yes. Having multiple cashback cards is common and can help you maximize earnings by using each card in its best category. However, applying for too many cards too quickly can hurt your credit score. Space applications three to six months apart.

How is cashback taxed?

Cashback rewards are generally treated as rebates, not income, so they are not taxable. The IRS considers them a discount on purchases. However, sign-up bonuses may be taxable in some cases. Consult a tax professional for your specific situation.

What credit score do I need for a cashback card?

Most top cashback cards require good to excellent credit (670 or higher on the FICO scale). Secured cards and some student cards are available for those with limited or poor credit, though they typically have lower earning rates and no sign-up bonuses.