Are you looking for the best cash back credit cards in 2023? You’re in luck, we have analyzed and compared the best credit cards with the most flexible cash rewards.
Not all cash bonus credit cards are equal. From varying bonuses to differing earning rates, it can be hard to pick the best credit card. Moreover, a user must pay attention to various factors like the various types of cards, the annual fee, benefits, and most importantly their own spending habits and requirements. No wonder, finding a suitable credit card for you is a herculean task.
Cash back cards earn rewards at varied rates and the benefits and fees also differ wildly. While some cash bonus credit cards don’t require an annual fee, others offer bonus spending categories that reward you for particular purchases.
We have analyzed the most popular credit cards to determine the best cash back credit card in different categories. Let’s dive in.
Best Cash Back Credit Cards in 2023
Here we have listed our recommendations for the best credit cards for fair credit in 2023.
1. Chase Freedom Flex: Best No Annual Fee Credit Card
If you’re looking for the best no annual fee credit cards, Chase Freedom Flex is one of the most versatile cards in the industry with no annual fees whatsoever. The card earns Chase Ultimate Rewards instead of cash back. Users are free to redeem their cash-back points at a rate of 1 cent per point. However, if you carry a card with an annual fee like the Chase Sapphire Preferred card, you can also convert your points into airline miles and hotel points.
Welcome Bonus: Earn a $200 bonus after you spend $500 on purchases in your first 3 months.
Card Earning Rates:
- 5% cash back in categories(for up to $1500 each quarter, then 1%)
- 5% cash back for travel reserved through the Chase travel portal.
- 3% cash back for dining and pharmacy transactions.
- 1% cash back for other purchases
2. Costco Anywhere Visa Card by Citi: Best for Gas Purchases
Costco Anywhere Visa Card by Citi is undoubtedly one of the best cash back credit cards in 2023. It offers a high return for gasoline and petroleum purchases. Users get 4% cash back on gas and EV charging stations worldwide( $7,000 limit per year, then 1%). However, the credit card does feature come drawbacks- While users are not required to purchase gas at Costco, any gas purchases made at a convenience store, supermarket, or warehouse club will only avail 1% cash back.
Welcome Bonus: There is no public introduction offer. However, you can inquire in-store to learn about various types of bonuses.
Card Earning Rates:
- 3% cash back with restaurants
- 3& cash back for eligible travel purchases all around the world.
- 2% cash back for purchases made at Costco(offline and online)
- 1% cash back on all other eligible products.
3. Ink Business Cash Credit Card: Best Sign-up Bonus Credit Card
Making its way to the list of best cash back credit cards of 2023, the Ink Business Cash Credit boasts the best welcome bonus out of every option. This card provides the largest welcome bonus without any annual fee. Moreover, the bonus is also better than most cards that charge annual fees. Similar to the Chase Freedom Flex, this card also earns Chase Ultimate Rewards Points that can be exchanged for 1 cent per point. If you also hold a Chase Sapphire card, you can also transfer cash back points to travel partners for free travel.
Welcome Bonus: $750 cash back after spending $6,000 in the first 3 months of account opening.
Card Earning Rates:
- 5% cash back on the internet, cable, phone services, and office supply stores(5x points).
- 2% cash back at gas stations and restaurants(2x points).
- 1% cash back on other purchases.
4. Capital One Savor One Cash Rewards Credit Card: Best for Dining
The Capital One Savor One Card was specifically designed for food purchases and dining. Users get 4% cash back on restaurants and even some food delivery services. Moreover, they can also get 3% cash back in grocery stores. If that wasn’t enough, users can also avail 10% cash back on Uber Eats and Uber purchases with a free Uber One membership. Also, note that this card also offers you access to Capital One Dining which will help you get reservations that are extremely difficult to get.
Welcome Bonus: $200 cash back on purchases of $1000.
Card Earning Rates:
- 8% cash back via Capital One Entertainment
- 5% cash back for hotels and car rentals
- 4% cash back on entertainment
- 4% cash back on streaming services
- 1% cash back on all other purchases
5. Prime Visa Credit Card: Best for Online Shopping
There are plenty of credit cards that offer bonuses and cashback bonuses with online stores. However, the Prime Visa Credit Card offers 5% cash back on Amazon where you can virtually purchase anything. This makes it one of the best cash back credit cards in the USA for online shopping. The card also offers a limited-time 10% return on select items. However, there is one stipulation- users will only earn a 5% cash back on Amazon if they possess a Prime Membership. Regular users can only avail 3% back.
Welcome Bonus: $150 Amazon gift card and 5% cash back on all purchases( up to $2500).
Card Earning Rates:
- 5% cash back at Amazon Whole Foods
- 5% cash back on travel bookings via the Chase Travel portal.
- 2% cash back on restaurants, gas stations, and commuting.
- 1% back on other purchases.
Read Also:- What Is a Major Difference Between Retail Banks and Credit Unions?
6. U. S Bank Cash+ Visa Signature Card: Best for Utility Bills
If you are looking for the best credit cards for fair credit, you can choose the U.S Bank Cash + Signature Visa Card. This card allows users to choose two categories each quarter with which they want to earn bonus rewards. The eligible categories include-
- Cellphone Providers
- Department Stores
- Electric Stores
- Fast Food
- Furniture Stores
- Ground Transportation
- Gyms and Fitness Centers
- Home Utilities
- Movie Theatres
- Sporting goods stores
- Select Clothing Stores
- TV/Internet/Streaming Services
The card also offers 5% cash back on any travel reserved through U.S Bank Rewards Centre. Users can avail 1% back on all other purchases. Moreover, users can also choose one category where they would like to earn 2% cash back.
Welcome Bonus: $200 bonus after spending $1000.
Card Earning Rates: 5% bonus rewards on select two categories of your choice.
7. Citi Double Cash Card: Best for Wedding Transactions
It is one of the best cash back credit cards for wedding-related transactions. Wedding expenses are usually diversified into various categories. The Citi Double Cash Card offers 2% cash back on everything. Firstly, the card earns 1% back when users make a purchase and 1% cash back when users pay off that transaction. If users use this card for their wedding expenses, they are guaranteed to get hefty returns.
Welcome Bonus: Currently there is no available bonus for this card.
Card Earning Rates: 2% cash back on all wedding-related expenses.
8. Capital One Quicksilver Credit Card: Best for Excellent Credit
The Capital One Quicksilver Credit Card is tailored toward users with excellent credit. No other Capital One card offers a higher flat rate than this card. Much like other Capital One cards, this card also allows users to turn their rewards into flyer miles. However, users need a Capital One miles-earning card and they are free to transfer their rewards to travel partners like Wyndham, British Airways, and Air Canada Aeroplan.
Welcome Bonus: $200 cash bonus after spending $500. (One-time offer)
Card Earning Rates: 5% cash back on hotels and car rentals
1.5% cash back on all other purchases.
9. Blue Cash Preferred Card by American Express: Best for Groceries
If you are looking for a family-oriented best cash back credit card in 2023, you should try the Blue Cash Preferred Card by American Express. This card offers 6% cash back on groceries, making it one of the best options for families. With a limit of $6,000, families can save up to $360 per year. Even small and medium-sized households will be able to achieve that by spending only $500 on groceries. Moreover, this card also comes with two monthly statement credits-
- $7 credit to reimburse a Disney Bundle subscription worth $12.99 per month.
- $10 credit to reimburse Equinox+ subscription worth $40 per month.
Welcome Bonus: $250 credit after spending $3000
Card Earning Rates: 6% cash back at U.S Supermarkets after spending $6000 in a year. Note that AMEX doesn’t consider convenience stores, warehouse clubs, and superstores as supermarkets.
6% cash back on select streaming services in the USA.
3% cash back at U.S gas stations
3% cash back on transit.
1% cash back on all other purchases
10. Citi Custom Cash Card: Best for 5% Cash Back
The Citi Custom Cash Card is among the easiest to use if you are looking to redeem 5% cash back. One of the best features of this card is that you get 5% cash back rewards up to $500 in your top spending category in a billing statement, then 1%. Here is the list of the eligible spending categories-
- Drugstore
- Fitness Clubs
- Gas Stations
- Home Improvement Stores
- Grocery Stores
- Live Entertainment
- Restaurants
- Select Streaming Services
- Select Transit
- Select Travel
This card makes it easier for the user to earn rewards. Simply make transactions normally, and users will get 5% cash back on whichever category they use the most. A $500 limit means that users can potentially earn $300 every year.
Welcome Bonus: Earn $200 cash back on spending $1500
Card Earning Rates: 5% cash back on the highest spending category.
1% cash back on all other eligible purchases
These are our top picks in the category of the best cash back credit cards in 2023. We have handpicked these options after carefully analyzing and comparing the features of various top credit cards with cash back rewards.
Types of Cash Back Credit Cards
There are typically three major types of cash back credit cards available in the market. Here is everything you need to know about the different types of cash bonus credit cards.
Flat-rate Cash Back Cards
A flat-rate cash back card offers the same amount of cash back on every transaction. Users can redeem their rewards through various methods including checks, statement credits, and bank deposits. However, some cash bonus cards also offer different methods to redeem rewards such as gift cards, shopping deals, and travel bookings.
Best Flat-rate Cash Back cards include Citi Double Cash Card and Capital One Quicksilver Credit Card.
Tiered Cash Back Cards
These cash back cards offer different cash back rates for various types of purchases. Most Tiered cards offer around 1% to 6% cash back on all eligible purchases. However, make sure to read the fine print as most often credit cards have dollar limits and other limitations.
Best Tiered Cash Back Credit Cards include Chase Freedom Unlimited and Blue Cash Everyday Card by AMEX.
Rotating Category Cards
Some credit cards offer 5% cash back on categories that are changed or rotated quarterly. Common categories include groceries, streaming services, food, gas stations, home improvement stores, etc. However, users also have to activate the bonus categories online or they won’t be able to earn bonus cash back rewards.
Best Rotating Category Cards include the Discover It Cash Back Card and Bank of America Customized Cash Reward Credit Card.
Read Also:- Best College Student Credit Cards of 2023
How to Choose the Best Cash Back Credit Card for You?
It might be hard for the average user to compare cards and choose the one most suitable for them. However, fret not, we have listed some important factors that will help users compare cash-back cards without any hassle.
Earning Potential
Users can earn rewards at various rates and categories depending on which card they use. First and foremost, analyze your spending and transactions and look for a credit card that offers the best bonuses in the category you spend the most.
Welcome Bonuses
Most cash back credit cards offer a lucrative welcome bonus. However, there is always a stipulation attached to it. Make sure to learn about the spending requirement to avail the welcome bonus. If it is more than your average expenditure, it is probably not a good option for you.
Annual Fees
Some cash back credit cards charge an annual fee. As a user, you should consider whether the rewards and benefits of a particular card will reimburse you for the annual fee. If not, you should try another card.
Cardholder Benefits
Besides cash-back rewards and bonuses, many credit card suppliers offer other benefits like purchase protection, free credit score access, extended warranty coverage, concierge services, and more. Make sure to understand your cardholder benefits before choosing a cash-back card.
Final Words
There are a lot of options in the market when it comes to credit cards. An average layman may get confused about technical terms and bonuses & rewards. To make your job easier, we have listed the best cash back credit cards you can use in 2023 to maximize your bonuses and avail great rewards.
Frequently Asked Questions(FAQs)
Ans. Cash back credit cards offer a percentage of each eligible purchase to the user. The money can be redeemed in the form of checks, bank deposits, and statement credits. Some cards offer a flat cashback rate which means you earn back the same percentage on every transaction.
Ans. Cash back rewards including credit card rewards are rarely taxable. As long as you spend your own money to earn them, credit card rewards are not usually taxable.
Ans. Cash-back credit cards may offer the option of redeeming your rewards as a statement credit, check, or deposit into your bank account. So if you receive your cash bank rewards as a check or bank deposit, you can avail real money.
