While credit cards come with a mind-numbing array of rewards, it’s the cash back or cash rewards card that tops the list. In fact, Consumer Reports recently released a credit card study that found cash back rewards cards to be a better deal than points cards: “Rewards cards that pay points that are redeemable for other purchases are less generous than cash-back cards.” As part of its article, Consumer Reports made several recommendations on how to get the most out of cash back cards and listed its top cashback credit cards. Here’s a look at both.
Consumer Reports Top Picks for Cash Back Credit Cards
Consumer Reports picked 5 credit cards to top its list of the best cash rewards offers:
| Card | APR | Program basics | Details |
|---|---|---|---|
| Discover More | 10.99% to 18.99% | Earn 5% cash back in four spending categories on up to $800 in quarterly purchases. On other purchases, earn 0.25% on up to $1,500 in annual spending; 0.5% from $1,500 to $3,000; and 1% after $3,000. Offers 0% APR on new purchases for six months; 0% APR on balance transfers for up to 12 months (3% transfer fee). | You can earn 5% to 20% percent cash back for purchases made through ShopDiscover, which includes dozens of retailers like Apple, PetSmart, Sears, and the Wine Enthusiast. You might get a better deal if you redeem points for gift cards from the 100 retailers they partner with instead of taking the cash-back option because you can get double points. You must request cash back. You can have it credited on your statement or deposited directly into an account. |
| TrueEarnings Card from Costco and American Express | 13.99% | Earn 3% cash back at gas and restaurants; 2% on travel; 1% everywhere else, including Costco. | Get a $25 credit on your statement after your first purchase. |
| Blue Cash from American Express | 11.99% to 17.99% | Earn up to 5% cash back at supermarkets, gas stations, and drugstores; up to 1.5% elsewhere. 0% APR on new purchases for 12 months. Offers a fixed 2.99% on balance transfers for the first 12 months (3% transfer fee). | You’ll receive 5% and 1.5% back on new purchases only after you’ve spent $6,500 in a year. For purchases below that threshold, you’ll get 1% and 0.5%. This card is best for big spenders. |
| Capital One No Hassle Cash Rewards | 8.15% to 15.15% | Earn 2% cash back on gas and groceries; 1% on all other purchases. 0% intro APR for up to 12 months. | Cash-back rewards never expire. A $29 annual fee is charged to people with lower credit scores. |
| Citi Cash Returns Card | 8.24% to 16.24% | Earn 1.2% cash back on all purchases in the first year; 1 percent after. Earn up to 5% additional cash back on purchases at more than 400 retailers such as Dell, Expedia, Gap, Office Depot, Saks, and Sephora through the Citi Bonus Cash Center. | Checks are automatically mailed to you when you earn $50. |
How to Use a Cash Back Card for Maximum Benefit
Consumer reports listed some dos and don’ts when it comes to cash back cards.
- Pick a card that pays automatically: Some rebate cards require you to request the cash. This is a just a hassle, so pick a card the pays you back automatically, like the ones listed above do.
- Pick a card based on your habits: Not all cash back cards are the same. Some cards pay you cash back on all purchases. Most cards pay high cash back rewards for select purchases, like groceries and restaurant charges. For this reason, it’s important to consider your spending habits carefully when choosing a card. If you rarely eat out at restaurants, a card that pays 5% cash back for eating out won’t do you much good.
- Use the card frequently: Cash back rewards are based on a percentage of the purchases charged to the card. The more that is charged, the higher the rewards. But of course, one needs to be careful not to overspend just because of the cash incentive. Using the card for everyday purchases that you would buy anyway is a solid approach.
- Make Use of Introductory Offers: Many cards come with introductory offers that are ideal for large purchases. Combined with a balance transfer card, you can get the benefit of no interest for six or 12 months and any up front cash incentives.
| More Popular Cash Back Credit Card Offers | |||
|---|---|---|---|
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*We do our best to accurately reflect the terms and conditions of credit card offers on this site. But please recognize that these terms and conditions can and do change from time to time. When you apply for a credit card offer, please make sure to read the terms and conditions on the credit card issuer’s website, as they may have changed since the information was last updated on this site.
