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Published: November 7, 2019

Choosing the Best Cashback Credit Card For You

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On the first part of this blog series, we gave an overview of what cashbacks are and why credit card companies use it as a popular and preferred rewards program especially during the holidays when shopping activity is very high.

For this part, we will talk about several cashback credit cards that have made waves in the market and could be the best fit for you.

Generally, there are three kinds of cashback credit cards: the flat-rate, tiered, and bonus category. There is no single cashback credit card that is the best fit for everyone. The card you choose will all depend on your shopping habits and how you spend your money.

Popular cashback credit cards in the US

  1. Alliant Cashback Visa® Signature Credit Card
    This card is only recommended to big spenders for a reason. It may have one of the highest annual fees, but it also offers an unlimited 3% cashback rate on every purchase of the first year, with unlimited 2.5% on the next years. With this kind of rewards program, shoppers who can spend a least $9,900 in a year would earn more cashbacks compared to a no-annual-fee card that only offers a 1.5% cashback rate. The Alliant Cashback Visa® also does not charge foreign transaction fees, which makes it an ideal option for spenders who travel internationally a lot.

  2. Bank of America® Cash Rewards
    Aside from having no annual fees, this card offers one of the highest online cash rewards bonuses at $200, considering you made at least $1,000 worth of purchases in the first 90 days of opening the account. It also allows you to earn 3% cashback in any category of your choice except for grocery stores, which is at 2%, and an unlimited 1% on all other purchases. These rewards have no expiration date, and you additionally can earn 25% to 75% more cashback on every purchase if you become a Preferred Rewards member. While this card offers a  0% introductory APR for the first 15 billing cycles for purchases, you then get charged 15.74% to 25.74% variable APR on the succeeding billing cycles.

  3. Blue Cash Preferred® Card from American Express
    Cashbacks offered by the Blue Cash Preferred® Card take the form of reward dollars that can be redeemed as a statement credit. With an offer of 6% cashback on purchases at US supermarkets and select US streaming subscriptions, 3% on transit and purchases on US gas stations, and 1% for other purchases, no wonder it is the preferred card for those who usually spend on groceries, gas, and commuting. You also have the option to get an additional card for anyone at least 13 years old, which allows you to earn more cashbacks from their purchases.

  4. Capital One® Quicksilver® Cash Rewards
    One of the more popular no-annual-fee flat-rate cards, the Capital One® Quicksilver® offers a one-time, $150 sign-up bonus after spending $500 on purchases within the first three months. It does not charge any foreign transaction fee, and it offers the usual 1.5% cashback on all purchases every day. It’s also flexible in a way that you can redeem your cashback in any amount. Since there are no rotating categories to look out for, your cashback will have no expiry date and there will be no limit on how much you can earn.

  5. Chase Freedom Unlimited®
    Like the Capital One® Quicksilver® card, shoppers can also earn a $150 sign-up bonus after spending $500 on purchases in the first three months. You can also earn unlimited 1.5% cashback on all purchases. It provided 0% introductory APR for 15 months on purchases and balance transfers, then a variable APR of 16.74 to 25.49% in the next months. There is also no minimum amount required in redeeming cashbacks, and they also do not expire as long as your account is open.

  6. Citi® Double Cash Card
    This card also has no caps on cashbacks and no annual fees. What’s interesting about this card is that it lets shoppers earn cashback twice on every purchase whenever they use it. For example, when someone makes a purchase, he or she will automatically earn 1% unlimited cash back, and this will double as soon as he or she makes payments for that purchase. It does not stay a no-annual-fee card, though. After the 0% introductory APR, which the card offers for 18 months on balance transfers, there is an expected variable APR of 15.49%  to 25.49% based on the shoppers’ credit score.

  7. Discover it® Cash Back
    The Discover it Cash Back is the flagship product of the Discover it cards. It offers 5% cashback at different categories like gas stations, grocery stores, restaurants, and online stores which rotate on a quarterly basis based on its  2020 cashback calendar. Shoppers can also earn an unlimited 1% cash back on all other purchases automatically, which never expires. Aside from this, cardholders can also earn a 5% cashback on a minimum of $1,500 worth of purchases made at Amazon.com, Target and Walmart.com.

  8. HSBC Cash Rewards Mastercard®
    The HSBC Cash Rewards Mastercard® credit card sets itself apart from other flat-rate cashback cards by offering 3% cashback on up to $10,000 worth of spending in the first year, with a 1.5% rate on the succeeding years. The introductory 3% cash back on this card makes shoppers potentially earn $300 cashback just in the first year alone, but the spending amount needed to max this out is relatively high. Like other flat-rate cards, however, there’s no opportunity to earn extra rewards on certain purchases.

  9. U.S. Bank Cash+™ Visa Signature® Card 
    What makes this card unique from other bonus-rate cards is that it allows shoppers to customize their rewards. Depending on what they like to earn, shoppers can choose their own bonus categories. It can maximize the cashback rate of shoppers based on their purchasing habits. Its customization is as follows: 5% cashback in two categories for up to $2,000 worth of combined spending per quarter; another unlimited 2% cashback in one category; and 1% on the remaining purchases.

  10. Wells Fargo Cash Wise Visa®
    Aside from earning a $150 cash rewards bonus after spending $500 in the first three months, shoppers can also enjoy the unlimited 1.5% cash rewards on purchases and 1.8% cashback on qualified digital wallet purchases for the first 12 months. Like other cards, it also has no annual fees, no category restrictions, and no expiry dates on cash rewards as long as the account remains open. Additionally, shoppers can also get up to $600 protection on their cell phones, subject to $25 deductions, against covered damage or theft when they pay their monthly cellular telephone bills with the card.

Whatever cashback credit card you choose, maximize its benefits by paying off the balance every month so you can pile as much spending as you can and increase your cashback rewards. Pay attention to your card’s annual fees, if there are any, to make sure that your purchases actually allows you to earn more cashbacks and set off what you need to pay. 

For those owning bonus-rate cards, continue checking their cashback calendars so you can fully take advantage of their rotating bonus categories. And while a huge sign-up bonus may attract you to choose a certain card, check if you could meet the required spending amount and duration so you can fully enjoy its benefits.

To learn more about cashback cards, their rewards, and what would work best for you, you can contact Agapay here

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Agapay was founded on the idea that payment processing should be ethical and give back to the community. In pricing, structure and service, we will always do our best to give the most value and maximize service.
Agapay is a Registered Partner/ISO of Elavon, Inc. Georgia [a wholly owned subsidiary of U.S. Bancorp, Minneapolis, MN]
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