More people are turning to financial tools that help them save while spending. In 2023, rewards programs have gained popularity, with households earning over $350 yearly just by using the right plastic. Whether shopping for groceries, dining out, or booking trips, these options maximize value effortlessly.
Many top-rated choices offer intro bonuses ranging from $200 to $250. Budget-friendly picks come with no yearly fees, while premium versions require FICO scores of 670-850. Standout features include 6% back at supermarkets and rotating 5% categories for extra savings.
Key Takeaways
- Households earn $350+ annually from rewards programs
- Intro bonuses of $200-$250 available on select options
- No annual fee choices suit budget-conscious users
- Higher-tier picks need good to excellent credit scores
- Special perks like 6% grocery rewards boost savings
Why Choose a Cashback or Rewards Credit Card?
Turning everyday expenses into earnings is simpler than most people realize. With the right plastic, routine buys like groceries or gas can put money back in your pocket. Let’s break down how these tools work and their standout perks.
How Cashback Cards Work
These options reward spending with percentage-based returns. For example, the Wells Fargo Active Cash® offers 2% unlimited rewards on all purchases. Others, like the Citi Double Cash®, split earnings—1% at purchase and 1% at payment.
Flat-rate cards simplify tracking, while category-specific picks (e.g., Capital One Savor’s 3%–8% on dining) maximize high-spend areas. Over time, recurring expenses compound savings—filling up your tank or stocking the fridge adds up.
Benefits of Rewards Credit Cards
Beyond earning cash back, these tools offer security. Federal law guarantees $0 liability for fraudulent charges—unlike debit cards tied directly to your bank balance. Premium versions often include travel insurance or concierge services.
“Responsible use can also boost FICO scores, as on-time payments and low utilization build credit health.”
APRs typically range from 19.24% to 29.24%, so paying balances in full avoids interest. For frequent shoppers or travelers, the right pick turns spending into an asset.
How We Selected the Best Cashback and Rewards Cards
Finding the right financial tool requires thorough research and clear criteria. Our team analyzed 50+ options, focusing on long-term value and user benefits. Below, we break down our methodology.
Evaluation Criteria
We prioritized plastic with $200+ intro bonuses and minimum 1.5% base rewards. Cards charging over $95 yearly fees were excluded unless perks offset costs. Redemption flexibility—like statement credits versus gift cards—was compared.
Extra features like purchase protection or concierge services boosted rankings. For example, options offering 5% back on purchases first months scored higher. We also tested issuer portals for redemption ease.
Data Sources
APR ranges were verified using 2023 CFPB data. Market trends came from the *Nilson Report*, while issuer disclosures ensured accuracy. Terms like months account opening bonuses were cross-checked.
| Feature | Top Criteria | Example |
|---|---|---|
| Intro Bonus | $200+ | Chase Freedom Unlimited® |
| Redemption | Statement credits | Citi Double Cash® |
| Annual Fee | Wells Fargo Active Cash® |
This approach ensures our recommendations deliver real savings. Whether you’re a frequent shopper or occasional spender, our picks align with diverse needs.
Best Flat-Rate Cashback Credit Cards
Flat-rate options make earning rewards effortless—no category tracking needed. Whether groceries, gas, or online shopping, these picks offer steady returns. Below, we compare two standout choices.
Wells Fargo Active Cash® Card: 2% Unlimited Rewards
This plastic shines with $200 cash back after spending $500 in the first 3 months. Earn 2% on every purchase—no caps or rotating categories. Redemption is simple: apply rewards as statement credits or deposits.
Ideal for debt consolidation, it offers 0% intro APR for 15 months. Post-intro, variable rates range from 19.24% to 28.24%. Note the 3% foreign transaction fee—pack a travel-friendly alternative.
Citi Double Cash® Card: Earn Up to 2% Back
Unique for splitting rewards, this option gives 1% at purchase and 1% at payment. Like the active cash® card, it includes a $200 cash back bonus (after $1,500 spend in 6 months).
Through 2025, redeem via Citi’s travel portal for an extra 5% bonus. However, ThankYou Points require more effort than Wells Fargo’s direct credits. APRs match at 19.24%–28.24% after the intro period.
| Feature | Wells Fargo Active Cash® | Citi Double Cash® |
|---|---|---|
| Intro Bonus | $200 after $500 spend | $200 after $1,500 spend |
| Redemption | Statement credits | ThankYou Points |
| Foreign Fee | 3% | 3% |
Both excel for large purchases or balance transfers. Discipline matters—pay balances monthly to avoid interest. For global use, pair with a no-fee travel card.
Best for Everyday Spending
Smart spenders know everyday purchases can work harder for them. Two standout options—Chase Freedom Unlimited® and Capital One Quicksilver—turn coffee runs and grocery trips into earnings.
Chase Freedom Unlimited®: Flexible Rewards
Earn $250 cash back after 500 purchases first 3 months. This pick offers 3% at drugstores and dining, plus 1.5% on all other buys. Through 2027, enjoy 5% back on Lyft rides.
Mobile wallet compatibility (Apple Pay, Google Pay) streamlines checkout. Pair it with premium travel plastic for elevated perks. Note the 19.24%–28.24% variable APR post-intro.
Capital One Quicksilver: Simplicity Wins
A flat 1.5 cash back rate suits those who hate tracking categories. Snag a $200 bonus after spending $500 in 3 months. Unlike Chase, it charges $0 foreign fees—ideal for occasional travel.
APRs climb to 29.24%, so pay balances promptly. Redemptions are instant, even for small amounts. Perfect for set-it-and-forget-it users.
| Feature | Chase Freedom Unlimited® | Capital One Quicksilver |
|---|---|---|
| Sign-Up Bonus | $250 after $500 spend | $200 after $500 spend |
| Foreign Fees | 3% | 0% |
| Max APR | 28.24% | 29.24% |
Best for Dining and Entertainment
Foodies and entertainment lovers can turn their spending into serious savings. Options like the Capital One Savor Cash Rewards card offer up to 8% back on purchases, making nights out or streaming subscriptions more rewarding.
Capital One Savor Cash Rewards: 3%-8% Back
Earn 8% on Capital One Entertainment purchases, including concert tickets and streaming services like Netflix. Dining and grocery buys net 3%–5%, though superstores like Walmart are excluded.
New users get a $200 bonus after spending $500 in 3 months. Uber One members enjoy credits through 2024—ideal for food delivery fans.
“For frequent diners, the Savor card’s rewards outpace many competitors, even after its $95 annual fee.”
How It Compares
- Amex Gold: Offers 4% on dining but charges a $250 yearly fee.
- Streaming perks: Spotify and Hulu subscriptions count toward rewards.
- Grocery note: Excludes wholesale clubs and discount retailers.
This card fits best for those who prioritize restaurants, live events, or recurring subscriptions. Pair it with a flat-rate option for non-category spending.
Best for Groceries
Groceries take a big bite from budgets, but the right card can turn that spending into savings. American Express offers two standout options for supermarket purchases—each with unique perks for different spending habits.
Maximize Savings with Blue Cash Preferred®
This card delivers 6% cash back u.s. supermarket purchases—up to 6,000 per year ($360 max). Spend beyond that earns 1%. New users get a $250 bonus after $3,000 spend in 6 months.
At $95 yearly, it pays for itself if you spend $1,583 annually. Pair it with Amex Offers for extra discounts at stores like Kroger. Gas stations and transit also earn 3%.
Blue Cash Everyday®: No-Fee Alternative
Prefer $0 annual fees? This version offers 3% cash back u.s. supermarkets (same $6,000 cap). The $200 intro bonus requires $2,000 spend in 6 months.
Like its sibling, it gives 3% at gas stations. Both exclude warehouse clubs but work at most national chains. Be aware of 2.7% foreign transaction fees.
| Feature | Blue Cash Preferred® | Blue Cash Everyday® |
|---|---|---|
| Supermarket Rewards | 6% (first $6,000/year) | 3% (first $6,000/year) |
| Gas Stations | 3% | 3% |
| Annual Fee | $95 | $0 |
For heavy grocery spenders, the Preferred’s higher rewards outweigh its fee. Light shoppers benefit more from the Everyday’s simplicity. Compare both against Citi Custom Cash’s 5% category flexibility.
Best for Online Shopping
E-commerce fans unlock hidden value through smart card choices. The Blue Cash Everyday® Card stands out with 3% back on U.S. online retail purchases, including Amazon, Walmart.com, and Target. Earn up to $6,000 yearly per category, plus a $200 bonus after $2,000 spent in six months.
How It Stacks Up
Prime Visa users get 5% at Amazon, but the blue cash everyday card covers more retailers. Pair it with tools like Honey for extra discounts. Note: Travel bookings and third-party marketplaces are excluded.
- Amex perks: Purchase protection and extended warranties.
- PayPal bonus: Earn rewards when checking out via PayPal.
- APR warning: 29.24% variable rate if balances aren’t paid monthly.
| Feature | Blue Cash Everyday® | Prime Visa |
|---|---|---|
| Online Rewards | 3% (multi-retailer) | 5% (Amazon-only) |
| Annual Fee | $0 | $0 (Prime membership required) |
Ideal for frequent web shoppers, this card turns routine buys into steady rewards. Just mind the spending caps and exclusions to maximize earnings.
Best for Rotating Bonus Categories
Strategic spenders can multiply rewards by aligning purchases with quarterly bonus categories. The Discover it® Cash Back card leads this space, offering 5% back on up to $1,500 in quarterly spending—after activation.
Maximize Quarterly 5% Bonuses
Current Q4 categories include Amazon.com and Target. Earn $75 extra yearly by maxing each quarter’s $1,500 cap. Discover matches all first-year earnings automatically—effectively doubling rewards.
- 2023 Q3: Gas stations and digital wallets
- Activation required: Log in monthly to unlock categories
- Base rate: 1% after reaching quarterly limits
How It Compares to Chase Freedom Flex
Both cards offer rotating 5% categories, but Discover it® Cash Back has no minimum redemption threshold. Chase requires $25 minimum for cash back. See key differences:
| Feature | Discover it® Cash Back | Chase Freedom Flex |
|---|---|---|
| Annual Fee | $0 | $0 |
| Foreign Fee | 0% | 3% |
| APR Range | 18.24%-27.24% | 19.24%-28.24% |
“Category tracking apps help users stay on top of rotating bonuses without missing earning opportunities.”
Ideal for organized spenders, this card turns seasonal shopping into unlimited cash back potential. Just remember to activate categories and monitor caps.
Best for Amazon Shoppers
Frequent Amazon shoppers can turn their spending into serious rewards. The Prime Visa stands out with exclusive perks tailored for loyal customers. From groceries to streaming, this card transforms routine buys into savings.
Unlock 5% Back at Amazon and Whole Foods
Earn 5% cash back on Amazon.com purchases, including Amazon Fresh and Whole Foods Market. No rotating categories or spending caps apply. New users receive a $100 amazon gift card upon approval—instant value before first purchase.
Additional benefits include:
- 2% rewards at restaurants, gas stations, and drugstores
- 10% discounts on UPS shipments with Amex Business Prime
- Chase Travel portal integration for booking flights and hotels
“Prime members spending $750+ yearly on Amazon break even on membership costs through rewards alone.”
Comparing Prime Visa to Alternatives
The Amazon Store Card offers 5% back but requires Prime membership. Unlike the prime visa, it lacks dining or gas rewards. Both options charge 28.24% variable APR—pay balances monthly to avoid interest.
| Feature | Prime Visa | Amazon Store Card |
|---|---|---|
| Amazon Rewards | 5% | 5% |
| Other Categories | 2% (dining/gas) | None |
| Foreign Fees | 0% | 3% |
Subscribe & Save users benefit most from this card. Automatic deliveries earn 5% back plus extra Amazon discounts. Just remember—the $139 Prime membership fee applies annually.
Best for Balance Transfers
Paying down debt becomes easier with the right financial tool. Some options offer extended 0% intro periods, letting users save on interest while tackling balances. Smart choices combine low fees with flexible payoff strategies.
Citi Double Cash®: 18 Months Interest-Free
This card stands out with 0% APR for 18 months on purchases balance transfers. A 3% fee applies ($5 minimum), but interest savings often outweigh this cost. After the intro period, variable rates jump to 18.24%-28.24%.
Compare it to Wells Fargo Reflect®, which offers 21 months at 0% APR. While longer, its 5% transfer fee ($5 min) makes larger debts costlier upfront. Both require good to excellent credit (670+ FICO).
Debt Payoff Strategies
Two proven methods help maximize savings:
- Snowball method: Pay smallest balances first for quick wins
- Avalanche method: Target highest APR debts to save long-term
For a $5,000 balance at 18% APR, paying $300 monthly saves $1,080 in interest with the Citi Double Cash® intro period. Always check new purchase APRs—some cards charge interest immediately during intro phases.
| Feature | Citi Double Cash® | Wells Fargo Reflect® |
|---|---|---|
| Intro Period | 18 months | 21 months |
| Transfer Fee | 3% ($5 min) | 5% ($5 min) |
| Post-Intro APR | 18.24%-28.24% | 17.24%-28.24% |
“High utilization (above 30%) can temporarily lower FICO scores. Paying down transferred balances quickly helps rebuild credit health.”
Set up autopay to avoid missed payments. Even one late fee could negate interest savings. Monitor statements closely—some issuers require transfers within 60 days account opening to qualify for intro rates.
Best for Customizable Rewards
Flexible rewards programs adapt to changing spending habits effortlessly. Unlike static options, these picks let users tailor earnings to match monthly priorities. Two standouts—Bank of America® Customized Cash Rewards and TD Cash Credit Card—offer unique customization perks.
Bank of America® Customized Cash Rewards
This bank customized cash option delivers 3% back in a chosen category: gas, online shopping, dining, or drugstores. For Platinum Honors tier members, rewards jump to 5.25% via the Preferred Rewards boost. New users receive a $200 bonus after spending $1,000 in 90 days.
Zelle integration simplifies payments, while the $2,500 quarterly cap encourages strategic spending. Note the 3% foreign transaction fee—pack a travel card for trips abroad.
TD Cash Credit Card: Fixed Categories
Earn 3% cash back on dining, groceries, and gas—no monthly changes needed. Like the custom cash® card, it offers a $200 bonus after $500 spent in 3 months. Redemptions start at $25, ideal for smaller budgets.
| Feature | Bank of America® | TD Cash |
|---|---|---|
| Max Rewards Rate | 5.25% (with boost) | 3% (fixed) |
| Foreign Fee | 3% | 3% |
“Hybrid spenders benefit most from mixing fixed and customizable cards—like pairing TD’s dining rewards with BoA’s online shopping perks.”
- Quarterly strategy: Shift BoA’s 3% category to match seasonal spending (e.g., gas in summer).
- Redemption tips: Use Zelle for instant transfers to avoid mailing checks.
- Credit alert: Both require 670+ FICO scores for approval.
Best for Travel Rewards
Rideshare commuters and vacation planners gain extra value from travel-focused rewards. Unlike traditional miles programs, these options deliver flexible cash back travel earnings on everyday transit and dining.
Chase Freedom Unlimited®: 5% on Lyft Through 2027
This visa signature card stands out with 5% back on Lyft rides—a rare perk for rideshare users. Earn 3% at drugstores and restaurants, plus 1.5% on other purchases. New users get a $250 bonus after spending $500 in 3 months.
Key advantages include:
- DoorDash DashPass membership ($0 delivery fees for 12 months)
- Mobile wallet compatibility for contactless transit payments
- No foreign transaction fees when used abroad
“Pairing this with Sapphire Reserve® turns cash back into 50% more value through Chase Ultimate Rewards.”
Compare features to premium alternatives:
| Feature | Freedom Unlimited® | Sapphire Preferred® |
|---|---|---|
| Lyft Rewards | 5% | 2x points |
| Airport Lounge Access | No | Yes (via Priority Pass) |
| Max APR | 28.49% | 27.24% |
Note the high variable APR—best for those who pay balances monthly. Frequent commuters using Lyft 10+ times monthly could earn $150+ yearly in rewards alone.
Cards with the Best Sign-Up Bonuses
Introductory offers can jumpstart your rewards journey when chosen wisely. Many financial products feature $200-$250 bonuses for meeting initial spending requirements. Matching these to planned purchases maximizes value without altering spending habits.
Comparing Top Introductory Offers
Chase Freedom Unlimited® leads with a $250 bonus after spending $500 in three months. That’s a 50% return on purchases you’d make anyway. Capital One Savor matches with $200 for the same $500 threshold, while Amex Blue Cash Everyday® requires $2,000 spend for its $200 reward.
Consider these factors when choosing:
- ROI calculation: $250/$500 offers better immediate value than $200/$2,000
- Timing strategy: Schedule applications before major purchases like appliances
- Bonus types: Cash back simplifies redemption versus points systems
“Card issuers may report bonuses over $600 as taxable income via Form 1099-ISC. Consult a tax professional for guidance.”
Avoiding Common Pitfalls
Frequent applications (“churning”) can trigger issuer scrutiny or credit score dips. Space applications 6+ months apart. Set calendar reminders for spending deadlines—missing by one day forfeits entire bonuses.
| Card | Bonus Amount | Spending Requirement | Timeframe |
|---|---|---|---|
| Chase Freedom Unlimited® | $250 | $500 | 3 months |
| Capital One Savor | $200 | $500 | 3 months |
| Amex Blue Cash Everyday® | $200 | $2,000 | 6 months |
Maximizing Bonus Value
Pair cards strategically—use one for bonus spend 500 thresholds, another for larger requirements. Always pay balances in full to avoid interest negating rewards. Track progress through issuer apps to ensure you meet targets.
How to Maximize Your Cashback Earnings
Boosting earnings from regular spending requires smart tactics and timing. Whether using a cash back card or rotating categories, small adjustments amplify rewards.
Stack Rewards Like a Pro
Combine multiple perks for bigger payouts. Pair Discover’s 5% rotating categories with Amex Offers for stackable deals. For example, buy groceries at a bonus store using the Citi Shop Through Portal for extra points.
- Flat-rate backups: Use a 2% card when bonus categories don’t fit.
- Price protection: File claims for electronics within 90 days.
- Rakuten: Earn cash back through partner stores.
Time Purchases Strategically
Align big buys with sign-up periods or quarterly bonuses. Set calendar alerts for category changes—like Discover’s Q4 Amazon bonus. Negotiate annual fees after the first year; issuers often waive them to retain customers.
| Strategy | Tool | Potential Earnings |
|---|---|---|
| Stacking | Amex Offers + Citi Portal | 8%+ back |
| Timing | Discover Q4 Categories | 5% back |
“Savvy shoppers track bonus calendars like sports fans follow schedules—it’s the key to winning the rewards game.”
With these tactics, you’ll earn more on back every purchase, turning routine spending into steady rewards.
What to Watch Out For
Hidden fees and complex terms can undermine rewards earnings. While financial tools offer valuable perks, understanding potential drawbacks ensures you maximize benefits without surprises.
Annual Fees vs. Rewards Potential
The Amex Blue Cash Preferred® charges $95 after Year 1—worthwhile if you spend $1,583+ annually on groceries. Calculate breakeven points by dividing the fee by your reward rate. A 6% card needs $1,583 spend to cover $95.
Watch for:
- First-year waivers that disappear
- Tiered rewards with spending caps
- Alternative no-fee versions (e.g., Blue Cash Everyday®)
“Retroactive interest applies if balances aren’t paid before intro periods end—read terms carefully.”
APR and Balance Transfer Pitfalls
The average 24.24% purchase APR can erase rewards if balances linger. With apr balance transfers, note:
| Trap | Solution |
|---|---|
| 5% transfer fees | Calculate if interest savings outweigh costs |
| New purchase APRs | Some cards charge interest immediately |
Grace period misconceptions trip many users. Interest starts accruing immediately on new purchases unless the previous balance was $0. Set autopay for at least minimums to avoid late fees.
Credit utilization impacts matter too. Transferring $5,000 to a $6,000 limit creates 83% utilization—potentially dropping scores 40+ points. Request limit increases first.
Foreign transaction fees (typically 3%) add up abroad. Pack a no-fee option like Capital One Quicksilver for international trips.
Conclusion: Picking the Right Card for You
Finding the perfect fit starts with aligning your spending patterns to reward structures. Heavy grocery shoppers benefit from 6% back options, while frequent diners should prioritize restaurant bonuses.
Consider upcoming life changes—like travel plans or home projects. Many issuers offer prequalification tools to check eligibility without credit score impacts. A two-card combo (flat-rate + category-specific) often maximizes earnings.
Annual reviews ensure your lineup stays optimized as habits evolve. Set calendar alerts for reward redemption deadlines to avoid losing hard-earned points. Most importantly, pay balances in full to prevent interest from outweighing benefits.
With the right strategy, everyday purchases can work harder for your wallet. Start small, track results, and adjust as needed to build lasting financial value.
FAQ
How do cashback credit cards work?
These cards give you a percentage back on eligible purchases. For example, the Wells Fargo Active Cash® Card offers 2% unlimited rewards on every purchase.
What’s the difference between flat-rate and category-based cashback?
Flat-rate cards like the Citi Double Cash® Card earn a fixed rate (e.g., 2%) on all spending. Category-based cards, such as the Blue Cash Preferred®, offer higher rewards in specific areas like groceries.
Are there cards with no annual fees?
Yes! The Chase Freedom Unlimited® and Capital One Quicksilver both offer solid rewards with no annual fee.
Which card is best for dining and entertainment?
The Capital One Savor Cash Rewards card earns 3%-8% back on dining, streaming, and entertainment.
How can I maximize cashback on groceries?
The Blue Cash Preferred® gives 6% back at U.S. supermarkets, while the Blue Cash Everyday® offers 3%.
What’s the best card for online shopping?
The Blue Cash Everyday® earns 3% on U.S. online retail purchases.
Do any cards offer rotating bonus categories?
Yes! The Discover it® Cash Back card gives 5% back in quarterly rotating categories.
Is there a card for frequent Amazon shoppers?
The Prime Visa offers 5% back at Amazon and Whole Foods.
Which card has the best balance transfer terms?
The Citi Double Cash® provides a 0% intro APR on balance transfers.
Can I customize my rewards?
Cards like the Bank of America® Customized Cash Rewards let you pick bonus categories for 3% cashback.
What’s the best travel rewards option?
The Chase Freedom Unlimited® earns 5% on Lyft rides and 1.5% on everything else.
How do sign-up bonuses work?
Many cards, like the Wells Fargo Active Cash®, offer 0-0 after spending a minimum amount in the first months.
What should I avoid with rewards cards?
Watch for high APRs, annual fees, and overspending just to earn bonuses. Always pay balances in full.