August 2023’s Best Cash Back Credit Cards

August 2023's Best Cash Back Credit Cards

The Best Cash Back Credit Cards for Every Need

Cash back credit cards are a popular choice among consumers due to their ability to earn rewards on everyday purchases. Whether you’re a seasoned rewards collector or new to credit card rewards, there are a variety of cash back credit cards available to suit your needs and preferences. In this article, we’ll highlight the best cash back credit cards on the market and dive into their unique features and benefits.

Best Cash Back Credit Cards

Wells Fargo Active Cash® Card: Best for flat-rate cash rewards

The Wells Fargo Active Cash® Card is highly regarded as one of the best flat-rate cash back credit cards available. It offers a flat rewards rate of 2% cash back on all purchases, with no bonus categories to keep track of. For those who prefer simplicity and consistency, this card is an ideal choice. In addition to its competitive rewards rate, the Wells Fargo Active Cash® Card also comes with a substantial welcome bonus of $200 cash rewards after spending $500 on purchases within the first three months. Furthermore, new cardholders can enjoy a 0% introductory APR on purchases and qualifying balance transfers for 15 months, making it a great option for those looking to finance larger expenses.

Chase Freedom Unlimited®: Best for everyday spending

The Chase Freedom Unlimited® card is renowned for its versatility and earning potential. With this card, you can earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% cash back on dining and drugstore purchases, and 1.5% cash back on all other purchases. This card is a fantastic choice for individuals who spend frequently on a wide range of categories. The Chase Freedom Unlimited® also offers a generous welcome offer of 1.5% cash back on all purchases made within the first year, up to $300 cash back. Additionally, this card provides an introductory 0% APR on purchases and balance transfers for the initial 15 months, making it beneficial for those planning significant purchases or consolidating existing balances.

Chase Freedom Flex℠: Best for rotating categories and flexible redemptions

The Chase Freedom Flex℠ card stands out for its rotating bonus categories, allowing cardholders to earn 5% cash back on up to $1,500 in combined purchases within select categories each quarter. From July 1 to September 30, 2023, the bonus categories for the Chase Freedom Flex℠ include gas stations, electric vehicle charging, and select live entertainment. This card’s ability to adapt to changing spending habits makes it an excellent option for those who prefer to maximize rewards in specific categories. Moreover, the Chase Freedom Flex℠ offers 5% cash back on travel booked through Chase Ultimate Rewards, 3% back on dining and drugstore purchases, and 1% back on all other eligible purchases. As an added perk, new cardholders can enjoy a $200 cash bonus after spending $500 on purchases within the first three months.

Discover it® Cash Back: Best for rotating cash back categories

If you enjoy the excitement of rotating bonus categories, the Discover it® Cash Back card is an ideal choice. This card allows you to earn 5% cash back on up to $1,500 in combined spending within quarterly rotating bonus categories (after activation), and 1% cash back on all other purchases. Bonus categories for Q3 2023 (July 1 to September 30) include gas stations and digital wallets. Additionally, for new cardholders, Discover matches all the cash back earned within the first year, effectively providing up to 10% cash back in the first year. The Discover it® Cash Back card has no annual fee and no foreign transaction fees, making it a valuable addition to your wallet.

• Facebook removed COVID-19 posts under pressure from Biden administr...
• Amazing photos depict the rejuvenation of California’s deplet...
• Tupperware’s journey from kitchen icon to meme stock

Blue Cash Preferred® Card from American Express: Best for families

The Blue Cash Preferred® Card from American Express is designed with families in mind. It offers an impressive 6% cash back on select U.S. streaming subscriptions, 3% back at U.S. gas stations and on transit, 6% back on groceries (up to $6,000 spent annually, then 1%), and 1% back on all other purchases. With its elevated reward rates on everyday expenses, this card can help families maximize their cash back earnings. Moreover, new cardholders can enjoy a $250 statement credit after spending $3,000 on purchases within the first six months. Although the card has a $0 intro annual fee for the first year, it becomes $95 thereafter. If you’re looking for a no-annual-fee alternative, consider the Blue Cash Everyday® Card from American Express.

Capital One SavorOne Cash Rewards Credit Card: Best for dining, groceries, and entertainment with no annual fee

For individuals who frequently dine out, shop for groceries, and enjoy entertainment, the Capital One SavorOne Cash Rewards Credit Card is an excellent choice. This card provides 3% cash back on dining, groceries (excluding superstores like Walmart and Target), entertainment, and popular streaming services. Additionally, it offers 5% cash back on hotels and car rentals booked through the Capital One Travel portal. New cardholders can earn a $200 cash bonus after spending $1,000 on purchases within the first three months, providing a rewarding start to card membership. With no annual fee and a competitive cash back rate, the Capital One SavorOne Cash Rewards Credit Card delivers value without any extra costs.

Citi Custom Cash℠ Card: Best for automatically customizing rewards

For those who prefer a hands-off approach to rewards, the Citi Custom Cash℠ Card automatically adjusts your cash back based on your top spending category each billing cycle. You’ll earn 5% cash back on up to $500 in purchases in your highest category (then 1%), and 1% cash back on all other purchases. The eligible categories include restaurants, gas stations, grocery stores, travel, transit, streaming, drugstores, home improvement stores, fitness clubs, and live entertainment. This card also provides a welcome offer of $200 cash back (20,000 ThankYou® Points) after spending $1,500 on purchases within the first six months. While the Citi Custom Cash℠ Card is advertised as a cash back credit card, it earns Citi ThankYou points, which can be redeemed for cash back, travel, gift cards, and more.

U.S. Bank Cash+® Visa Signature® Card: Best for choosing your own bonus categories

The U.S. Bank Cash+® Visa Signature® Card offers the flexibility to select your own bonus categories and earn 5% cash back on up to $2,000 in combined purchases each quarter (then 1%). You can choose two categories among options like prepaid air travel, hotels, car reservations booked through the Rewards Center, fast food, home utilities, TV, internet, streaming services, department and electronic stores, cell phone providers, sporting goods stores, furniture stores, movie theaters, gyms, select clothing stores, and ground transportation. Additionally, this card allows you to pick an “everyday” category that earns 2% cash back, including gas and EV charging stations, restaurants, or grocery stores. New cardholders can enjoy a $200 bonus after spending $1,000 on eligible purchases within the first 120 days. With its customizable rewards and competitive earning potential, the U.S. Bank Cash+® Visa Signature® Card is an excellent option for optimizing cash back.

Citi® Double Cash Card: Best for balance transfers

The Citi® Double Cash Card is a reliable option for individuals interested in a flat-rate cash back card with balance transfer benefits. This card allows you to earn 2% cash back on every purchase — 1% when you make the purchase and another 1% when you pay it off. Additionally, it offers a 0% introductory APR on balance transfers for 18 months, making it an attractive choice if you’re planning to consolidate your existing credit card balances. The card has no annual fee, making it a cost-effective option for those seeking to save on interest and earn cash back simultaneously.

Capital One SavorOne Student Cash Rewards Credit Card: Best for students

For college students looking to start building their credit and earning rewards, the Capital One SavorOne Student Cash Rewards Credit Card is an excellent choice. This card provides 3% cash back on dining, groceries, entertainment, and popular streaming services. It also offers 5% cash back on hotels and car rentals booked through the Capital One Travel portal. New cardholders can earn a $200 cash bonus after spending $1,000 on purchases within the first three months. The card comes with built-in travel and purchase coverage, including price protection, extended warranty, car rental insurance, roadside dispatch, and travel accident insurance. With no foreign transaction fees and the potential to graduate to the regular version of the card after college, the Capital One SavorOne Student Cash Rewards Credit Card caters to the needs of young adults.

Making the Most of Cash Back Credit Cards

Cash back credit cards offer individuals a straightforward way to earn rewards, but maximizing their potential requires a strategic approach. Here are some tips on how to make the most of your cash back credit card:

1. Pay off your balance in full each month: To avoid paying interest and truly benefit from cash back rewards, it’s crucial to pay off your credit card balance in full and on time. Carrying a balance can negate the value of your rewards.

2. Understand bonus categories and spending habits: Familiarize yourself with the bonus categories of your cash back credit card and align them with your spending patterns. Choose a card that rewards you for expenses you frequently incur to maximize your cash back earnings.

3. Redeem your cash back: Rather than letting your cash back accumulate, make the most of it by applying it to your credit card statement or depositing it into your checking account. Regularly redeeming your cash back ensures you reap the intended benefits.

4. Consider pairing cash back and points earning cards: Depending on your goals, combining cash back and points-earning cards can optimize your rewards potential. For example, if you have a Chase Freedom Flex℠ card and a Chase Sapphire Preferred® Card, you can transfer cash back from the Freedom Flex℠ to the Sapphire Preferred® and unlock additional redemption options with travel partners.

5. Choose the right card for your spending habits: Select a cash back credit card that aligns with your lifestyle and spending habits. Whether you prefer a flat-rate cash back card or one with bonus categories, picking the right card can maximize your rewards and overall satisfaction.

By adhering to these strategies and choosing the right cash back credit card for your needs, you can effectively earn significant rewards and enjoy the benefits of your card.

Final Thoughts

Cash back credit cards offer a convenient and rewarding way to earn benefits on your everyday spending. With a wide range of options available, you can select a card that reflects your preferences and spending habits. Whether you prefer simplicity, bonus categories, flexibility, or specific rewards, the best cash back credit cards listed in this article offer the opportunity for significant cash back earnings. Evaluate your priorities, consider your spending patterns, and choose the card that aligns with your financial goals. Start maximizing your rewards today with a cash back credit card that suits your needs!

• best cash back credit card
• Personal Finance Insider
• PFI Guide