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Even though our focus at The Points Guy is (obviously) on redeeming frequent flier miles and hotel points to maximize our free travel, the truth is not everyone likes traveling or has the time to do so. Some people simply believe that cash is king, and would prefer a few extra dollars in their bank accounts over free flights. Just because you’re not a frequent traveler, doesn’t mean you can’t use credit cards to supercharge your earnings. And with that, here are the top cash back cards for 2018.
The Short List:
- Chase Freedom: Best rotating quarterly bonus categories
- Chase Freedom Unlimited: Best flat cash back rate
- Citi Double Cash Card: Rewards you when you buy and when you pay
- Discover It Cash Back: Best first year earning potential
- Capital One Quicksilver Card: No foreign transaction fees
- Ink Business Cash Credit Card: Best bonus categories
- Blue Cash Preferred from American Express:Best for gas and groceries
Picking The Best Cash Back Card For You
With all these options to choose from, it’s important to have a clear plan for analyzing which card makes sense for you. Similar to a points card, here are the factors I consider:
- Earning Rates. Unlike points and miles, you can’t really “maximize” the value of your cash back. Once the money hits your wallet it’s up to you to decide what to do with it. This means you need to be hyper vigilant about earning rates. Are there bonus categories? Do they rotate throughout the year? Do merchants code the way you’d expect them to? What types of stores do you spend the most money at?
- Redemption process. Unfortunately some card issuers make the redemption process rather difficult. Some offer statement credits while others might cut you a check. Be sure to thoroughly read the terms and conditions of your card, and keep an eye out for any redemption minimums imposed by the bank.
- Annual fee. Most cash back cards are fee free (as they tend to offer fewer perks) but some do still have an annual fee. As you would with any credit card, make sure the perks and benefits you’re receiving outweigh the fee, and keep an eye out for foreign transaction fees! While most points cards waive these, no-annual fee cards often charge them.
With all this in mind, let’s take a look at some of the best cash back cards currently available.
Chase Freedom
This card offers a flat 1% back on most purchases, which isn’t exactly competitive with some of the other offers out there. The real excitement comes with the quarterly rotating bonus categories. These have ranged in the past from restaurants to gas stations, grocery stores, Paypal purchases and many more. After enrolling your card each quarter, you’ll earn 5% back on your first $1,500 in purchases in the bonus category, for a max of $75 a quarter. Given that there’s no annual fee to worry about, maxing out the bonus categories every quarter would put an extra $300 back into your pocket over the course of the year.
Even though we’re talking about cash back cards today, I have to remind you that if you also have a premium Chase card, like the Sapphire Reserve, Sapphire Preferred, or Ink Business Preferred, you can transfer your “cash back points” to that card and make them full-fledged Ultimate Rewards points. From there, you could transfer them to one of Chase’s hotel or airline partners, or book travel directly through the Chase portal at an elevated rate of 1.25 cents per point, or 1.5 cents if you have the Sapphire Reserve. Given that I value Ultimate Rewards points at 2.1 cents each, this strategy would more than double the value you’d get from just taking the cash back. The Chase Freedom is currently offering a sign-up bonus of $150 after spending $500 in 3 months, as well as a $25 bonus after you add an authorized user and they make their first purchase in the same 3 month timeframe.
Citi Double Cash Card
The Citi Double Cash Card combines simplicity and a relatively high earning rate to rank highly on this list. You’ll earn 1% cash back at the time of the purchase, as well as another 1% back when you pay your bill. You technically only need to make the minimum payment to earn the second half of the reward, but remember that carrying a balance on your credit cards can quickly erase the value of your rewards, be it cash back or miles.
While you have to accumulate $25 in rewards in order to redeem your cash back, you have a few options from there. You can request a check, a statement credit, a gift card from select merchants, or a credit to your linked Citi savings or checking account. Unfortunately this card doesn’t offer any sign-up bonus and does have a 3% foreign transaction fee, but I still consider it to be a strong value proposition thanks to its easy and uncapped 2% cash back and lack of annual fee.
Chase Freedom Unlimited
The Chase Freedom Unlimited is a bit of a hybrid of the first 2 cards on this list, and a solid starter card whether you’re looking for cash back or to dip your toe into the points game. The card offers a flat and uncapped 1.5% back on all purchases, with no bonus categories (rotating or otherwise) to keep track of. Like the Chase Freedom, you can more than double the return you get from this card by pairing it with an Ultimate Rewards earning Chase card.
Discover it Cash Back Card
The Discover it card doesn’t get the press it deserves, but it has the potential to be the most rewarding cash back card on the market, at least for the first 12 months. It functions much like the Chase Freedom does in that you’ll earn 1% back on all purchases, except for the rotating quarterly categories where you’ll earn 5% back on your first $1,500. The real value lies in the welcome bonus. Unlike most cards that will give you a set number of points or dollars for spending a certain amount, Discover will match all the cash back you earn for the first year. This means that you’ll earn 2% on everyday spend, and a whopping 10% on the quarterly bonus categories.
Similar to the Citi Double Cash Card you also have a number of redemption options, including statement credits, deposits to your bank account, gift cards, and even charitable donations. All redemption options start as low as one penny, except for gift cards and eCertificates which have a $20 minimum. Not only does this card have no annual fee, it also waives foreign transaction fees making it a very compelling option both at home and abroad.
Capital One Quicksilver card
The Capital One Quicksilver card also waives foreign transaction fees, as well as offering a simple uncapped 1.5% back on all purchases. It’s also currently offering a sign-up bonus of $150 after spending $500 in the first 3 months. And that’s about all you need to know, as simplicity is key here. You can redeem your 1.5% cash back as a statement credit or check, and you can even set a schedule for your redemptions if you want.
Ink Business Cash Credit Card
The Ink Business Cash card consistently ranks as one of the most rewarding small business cards thanks to its generous bonus categories. You’ll earn 5% back on the first $25,000 in combined purchases at office supply stores and on phone, internet and cable services each year. You can also earn 2% back on the first combined $25,000 spent at gas stations and restaurants, as well as 1% back on all other purchases.
The Ink Business Cash has no annual fee, but it does carry a 3% foreign transaction fee. Similar to both the Chase Freedom and Chase Freedom Unlimited discussed above, you can double the value of your rewards if you also have a premium Chase credit card. This card is also currently offering a nice sign-up bonus of $500 after spending $3,000 in the first 3 months, which I actually value at $1,050 if you can transfer these points to a Chase Ultimate Rewards card.
Blue Cash Preferred Card from American Express
The Blue Cash Preferred Card from American Express can offer an excellent value as well, although it requires a bit more leg work to keep track of bonus categories and make sure you’re earning enough to justify the $95 annual fee. You’ll get 6% back at US supermarkets on your first $6,000 a year (and 1% back after that), 3% back at US gas stations and 1% everywhere else. You can redeem your rewards as statement credits once your balance tops $25. This card does charge a 2.7% foreign transaction fee, so you’re best off leaving it at home when you travel. That being said, it also has a sign-up bonus of $200 after spending $1,000 in your first 3 months, which more than offsets your first years annual fee.
Forbes has partnered with The Points Guy for our coverage of credit card products. Forbes and The Points Guy may receive a commission from card issuers.
