Credit cards are quite beneficial as they allow you to purchase goods and pay for them at a future date. And you should opt for cashback credit cards to earn great rewards on your spending. Cashback cards are better than the other credit cards as you can earn a percentage of the amount spent on your purchases. The rate of cashback will be different for the three primary types of cashback cards including flat-rate cashback, bonus category cashback, and rotating bonus category cashback.
Cashback cards also give you the opportunity to earn your money back through special promotions and shopping portals to double the benefit applicable by default. It is one of the simplest ways to increase your savings.
Features of cashback credit cards
- Sign-up bonus
Most cashback cards offer an attractive sign-up bonus for the first year of purchases.
- Attractive rates of cashback
The rates of cashback determine the amount you can earn on eligible purchases. These rates are attractive and vary based on the type of card chosen.
- Different redemption methods
You will have the option of redeeming your cashback for direct statement credits, credit to eligible accounts with the bank, or direct credit to your checking and savings accounts.
- Zero annual percentage ratio (APR)
Cashback cards offer zero-APR purchases for up to a year depending on the type of card.
- Zero annual fees and perks
Most cashback cards come with no annual fees and many banks offer free balance transfers as part of the introductory bonus for the first few months.
While there are many cashback credit cards to choose from, a few of them stand above the rest. Based on our own analysis, below are the most recommended options:
Best Overall Cashback Credit Card – Bank of America® Cash Rewards Credit Card
Bank of America® Cash Rewards is one of the best credit cards to have in 2019.
- There is no annual fee for the card and no expiration date for your cash rewards.
- You can update your choice categories once a month.
- Balance transfers can be made free of cost in the first 60 days.
- Minimum $10 or 3% of the transaction amount will be chargeable for subsequent balance transfers.
- An introductory 0% APR will be applicable for the first 12 billing cycles. Thereafter, a variable APR in the range of 16.24% and 26.24% will come into effect.
- Your personal information, proof of citizenship, and employment details will be required.
- You must also submit financial information stating your annual income.
- You must have a credit score of at least 690.
- You can avail $200 online cash rewards for purchases worth $1000 made within the first 90 days of opening your account.
- Bonus categories let you earn 3% on your choice of purchases.
- You can get a 2% cashback on procurements at grocery stores and wholesale clubs.
- A 1% unlimited cashback feature is applicable for all purchases.
- The Preferred Rewards member program allows an additional 25% to 75% cashback on eligible purchases.
The Bank of America® Cash Rewards card is one of the best credit cards for excellent credit scores. It tops our list of recommendations to avail guaranteed rewards and cashback.
In case you do not get approved or are not eligible for Bank of America® Cash Rewards Credit Card, you could consider the following options
Discover it® Cash Back
Discover it® Cash Back credit card offers some of the best opt-in categories and unique bonuses. It is a popular choice among zero percent balance transfer credit cards.
U.S. Bank Cash+™ Visa Signature® Card
This card gives you a $150 bonus in the first 90 days of opening an account with a minimum spending limit of $500 on select purchases with U.S. Bank.
Quicksilver® from Capital One®
This card comes with no restrictions on the amount or time of redemption.
Blue Cash Preferred® Card from American Express
Blue Cash is one of the best cashback credit cards to use for regular spending on gas and groceries as they offer cashback of up to 6% on purchases made at the US supermarkets and 3% on spending at the US gas stations.
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