Who Offers Cashback Rewards?
Credit cards are an integral part of many people’s everyday finances. Credit card companies have stepped up their game in regards to the bonuses that they offer. There are a variety of offers including airline miles, points systems, and even cash back. Cash back rewards can be calculated a few different ways and credited to the consumer several different ways. Category cash back rewards offer a certain percentage of purchases spent in a specific category in cash back to the consumer. The categories in which a consumer can earn cash back usually rotate quarterly. Tiered reward cards usually have varying percentages of cash back depending on where you use the card. Supermarkets may earn five percent cash back while gas purchases may earn only two percent. Unlike the categories rewards cards, tiered reward cards do not rotate their categories. While the previous two types of rewards require a little effort to track the categories, the third type of card is a simpler reward system. Simple, or flat, cash back rewards cards offer the same percentage back regardless of where the card is used. So what are the best cash back cards out there?
1 - Chase Freedom
The Chase Freedom card offers cash back rewards and a sign up bonus for new accounts. This card is considered a category cash back rewards. Each quarter, account holders can browse the new categories and activate five percent cash back in whichever category they think they would use the most up to one thousand and five hundred dollars. For all purchases that do not fall into that category, one percent unlimited cash back will be applied. The rewards do not expire and can be redeemed as cash back, gift cards, or used immediately at checkout on the Amazon website. A one hundred and fifty dollar sign up bonus will be applied to accounts that spend at least five hundred dollars in the first three months of opening the account.
2 - Discover It
Discover It offers five percent cash back rewards on all purchases in the category that the account holder activates each quarter. All other purchases receive one percent cash back, as do any purchases over one thousand and five hundred dollars in the activated category. Rewards can be redeemed any time and for any amount the account holder desires. They can also be redeemed at checkout on the Amazon website. Instead of an initial sign on bonus, Discover matches the total amount of cash back earned in the entire first year the account is open.
3 - Capital One Savor
The Capital One Savor credit card is a great example of a tiered card that is tailored to a consumer’s specific interests. This card offer four percent cash back on all dining and entertainment purchases, which are classified as transactions made at restaurants, coffee shops, fast food establishment, bakeries, movie or concert tickets, sporting events, and attractions such as theme parks or zoo tickets. A hefty sign up bonus of five hundred dollars for new accounts that spend three thousand dollars in the first three months is also offered. Points can be redeemed in any amount and whenever the account holder wishes to cash them in.
4 - Citi Double Cash Credit Card
This flat rate card is one of the top competitors in the market today. It offers two percent cash back on all purchases, regardless of where they were made. One percent is applied when the purchase is made, and the remaining one percent when the account holder makes a payment. In order to be redeemed, there needs to be a minimum of twenty five dollars in rewards on the account. Rewards can be redeemed for statement credit, bank deposit, gift card, or check. The rewards do expire if no new rewards are earned in a twelve month period.
5 - Blue Cash Everyday Card by American Express
This tiered card offers the highest percentage seen yet with six percent cash back on all purchases made at a supermarket. This cash back rate applies up to six thousand dollars in one year’s time. Three percent cash back rewards are earned on purchases made at gas stations and select department stores. All remaining purchases will earn one percent cash back. All cash back rewards can be redeemed as statement credits, but it cannot be applied towards the minimum balance due. New accounts that spend one thousand dollars in the first three months of having an account will earn one hundred and fifty dollars as a statement credit.