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I’m certainly a fan of earning travel rewards, but it’s tough to beat plain hard cash back, especially in a year in which travel is especially difficult.
Every time you swipe a credit card, the merchant pays a fee in the neighborhood of 3%. Businesses that want to be profitable will factor those costs into the price of the products and services they offer.
If you assume you’re paying about a 3% premium on everything you purchase, you might as well do what you can to get most of that money back.
As someone who likes to optimize, I’ve often found ways to get more than 3% back on my money via a combination of welcome bonuses with new cards and efficient use of travel rewards points.
Always trying to squeeze the most out of every point can be challenging, time-consuming, frustrating, and even stressful. There are times where it’s just easier to use a good cash back card and know exactly what your return will be.
Today, I’ll review some of the best cards available for good old, simple cash back.
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If you want to jump right to the cash back cards based on category, use this handy table of contents.
Personal Cards Offering Cash Back as a Flat Percentage
It doesn’t get any simpler than getting a flat percentage back on every dollar you spend. These cards are ideal for the person who wants to have one card to use on everything. It’s simplicity at it’s finest.
Chase Freedom Unlimited
The Chase Freedom Unlimited card offers up to $300 bonus from an extra 1.5% back on your first $20,000 in purchases in the first 12 months. The card also offers 3% back on restaurant and drugstore purchases, and a flat 1.5% cash back on all other purchases.
card_name
Annual fee
annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read more
Capital One Quicksilver Cash Rewards Card
The Capital One Quicksilver Cash Rewards Card will also get you 1.5% back on all purchases. Like the others above, there is no annual fee, and like the HSBC card, there are no foreign transaction fees when using this card outside of the United States.
The early spend bonus on this card is $200 when you put a total of $500 on the card within the first three months.
card_name
Annual fee
annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read more
Citi Double Cash Card
The Citi Double Cash Card offers a total of 2% cash back on all purchases: 1% when you charge and 1% when you pay.
The card carries no annual fee and a 0% introductory APR on balance transfers for 18 months (fees apply).
Since the card offers no welcome bonus, one must do the math to determine how long it will take to break even when comparing to one of the cards above with a $150 or $200 welcome bonus.
The Citi Double Cash Card pays an extra 0.5%, or 50 cents on every $100 spent on the card as compared to those giving you 1.5%. That’s $5 extra per $1,000 spend, and $50 per $10,000.
The breakeven point, therefore, occurs when you’ve spent $30,000 on the Double Cash card as compared to those offering a $150 welcome bonus, and $40,000 as compared to a card like the Chase Freedom Unlimited offering a $200 welcome bonus.
card_name
Annual fee
annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read more
Business Cards Offering Cash Back as a Flat Percentage
Chase Ink Business Unlimited
The Chase Ink Business Unlimited card gives you unlimited 1.5% cash back on all purchases. The card has no annual fee.
The welcome bonus is quite generous for a no-annual-fee card at $900 after a $9,000 spend within the first three months.
card_name
Annual fee
annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read more
If you prefer a card with no annual fee, the Capital One Spark Cash Select for Business card is just that. The downside is that you get 1.5% cash back instead of the 2% you earn with the non-Select version of the card. This card is also not currently available via CardRatings.
This card also has a smaller welcome bonus of $200 after a $3,000 spend in the first three months.
How do you determine which card is best betwee the Spark Cash and Spark Cash Select?
The break-even point is at about $20,000 in annual spending on the card.
1.5% cash back would be $300.
2% back would be $400.
It makes sense to pay a $95 annual fee to get an extra $100 in cash back, not to mention the larger welcome bonus.
If you spend less than $20,000 on a business card, the Cash Select card may make more sense for you, although the Chase Ink Business Unlimited card has the same cash back percentage, also has no annual fee, and a welcome bonus of $750 rather than $200.
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Personal Cards Offering Variable Cash Back in Different Categories
The cards above are the simplest for earning cash back rewards. It doesn’t matter what you spend your money on; the cash back is the same.
The following cards take a little more effort to optimize. Many will offer 1% cash back in certain categories and 2% to 6% cash back in others. Those categories are static in some cards, rotate quarterly in others, and some cards let you choose the categories for increased cash back.
Let’s look at some of the top cards in this category.
Chase Freedom Flex
There’s a new cash back card from Chase, the Chase Freedom Flex. Like its predecessor, the Chase Freedom card, it offers 5% back on rotating categories that you activate quarterly.
Unlike the Freedom Card, it’s branded as a Mastercard rather than a Visa. That gets you World Elite perks specific to Mastercard like a complimentary ShopRunner subscription and additional Lyft perks ($10 credit when you use Lyft 5 times a month). You’ll also get 3% back at drug stores and restaurants at all times.
The card comes with a strong $200 cash back bonus once you spend $500 in your first three months with the card. Think of the Flex as the new and improved Freedom card from Chase.
Blue Cash Preferred® Card
The Blue Cash Preferred Card (rates and fees) from American Express is great for those of you who spend more on groceries than dining out. Count me among them.
You get a full 6% back at U.S. supermarkets on the first $6,000 in annual U.S. supermarket purchases and many popular streaming services.
U.S. Gas station purchases and other ground transit will net you 3% in cash back, and all other purchases give you 1% back.
The card does have a $95 annual fee (fee waived for your first year) and a $250 welcome bonus when you spend $3,000 in the first 6 months after opening your account. Terms apply.
card_name
Annual fee
annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read more
Blue Cash Everyday® Card from American Express
The Blue Cash Everyday Card (rates and fees) from American Express is the no annual fee version of the AmEx Blue card.
The perks are lower, but you will get 3% back on U.S. supermarket purchases (with the same $6,000 limit), 3% back at U.S. gas stations on up to $6,000 per year, and 1% elsewhere.
The welcome bonus is $200 statement credit after you’ve spent $2,000 in your first six months with the card. Terms apply.
card_name
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annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read more
The US Bank Altitude Go
US Bank also has a new card, the US Bank Altitude Go Visa Signature Card.
It’s a no annual fee card with some unique features, including an annual $15 credit for popular streaming services. The cash back rewards operate on a point system where 100 points = $1.
The welcome bonus is 20,000 points ($200 worth) after a spend of $1,000 in the first 90 days. You’ll receive 4x points on restaurants and food delivery, 2x on grocery stores and delivery, gas stations, and streaming services, and 1x (i.e. 1% back) on everything else.
This is a great no-fee card for someone who frequently dines out or orders takeout and would like a free month of Netflix each year.
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annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read more
Costco Anywhere Visa Card
The Costco Anywhere Visa Card by Citi is for Costco members exclusively. There is no welcome bonus and no annual fee if you have a paid Costco membership.
The cash back perks are pretty sweet with 4% back on the first $7,000 in gasoline. If you’re spending more than that, you should drive less or get a more fuel-efficient vehicle.
Restaurants and eligible travel purchases will get you 3% cash back, you’ll receive 2% cash back on Costco purchases, and 1% back on everything else.
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annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
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Business Cards Offering Variable Cash Back in Different Categories
Chase Ink Business Cash
The Chase Ink Business Cash card is, in my opinion, the best business credit card with variable cash back.
The card has no annual fee ever, a $750 welcome bonus with a $3,000 spend in three months, and offers up to 5% cash back.
You’ll earn 5% on the first $25,000 spent (that’s $1,250 cash back) on purchases at office supply stores (Staples, Office Depot, Office Max), cellular and landline telephone service, internet, and cable TV services.
Gas station purchases are rewarded with 2% cash back and you’ll get 1% back on everything else.
card_name
Annual fee
annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read more
American Express Blue Business Cash™ Card
The Blue Business Cash Card (rates and fees) card is another option for a variable cash back business card, and it’s a little more straightforward.
You’ll receive 2% cash back on all eligible purchases on up to $50,000 per calendar year, and after that, 1% cash back earned is automatically credited to your statement.
There’s no cash welcome bonus like the Ink Business Cash‘s generous $750, but they will give you a credit of $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months. Terms apply.
card_name
Annual fee
annual_feesIntro APR
intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read more
Cards with Points That Can Be Converted to Cash
For the most part, the cards above offer cash or cash equivalents as your only reward option. There are lots of other great cards that work on a point system, and those points can often be converted to cash or cash equivalents, often on a 1 point = 1 penny conversion factor.
In many cases, cash is not the best redemption option for these points, and it’s not unusual for people to get 1.5 to 2 cents or more in value per point when redeemed for travel or other perks.
There are too many cards to go into the same level of detail as we have with the other cards, but some of the top cards that fit this category are worth mentioning, and you can follow the links for all you’ll need to know.
Personal Cards with Flexible Points
- Chase Sapphire Preferred
- Chase Sapphire Reserve
- American Express® Gold Card (rates and fees)
- The Platinum Card® from American Express (rates and fees)
- Capital One Venture
Business Cards with Flexible Points
- Chase Ink Business Preferred
- Blue Business Plus Card from American Express (rates and fees)
- American Express Business Gold Card (rates and fees)
- The Business Platinum Card® from American Express (rates and fees)
Developing Your Cash Back Strategy
One Card Strategies:
If simplicity is your thing, I recommend getting a single card with a flat percentage of at least 1.5% back and using it for everything you buy. If you put $50,000 on a card in a year, that will net you $750 back annually, and you may get a welcome bonus on top of that.
The Chase Freedom Unlimited Card will give you $200 after spending $500 in three months. If you’d rather forego the welcome bonus but get 2% back on everything, look to the Citi Double Cash card.
If you’ve got a small business, and you plan to spend $50,000 in a year (with half of that coming in eligible categories), the Chase Ink Business Cash card could net you $1,250 on the 5% cash back category, and at least another $250 (more if you spend at gas stations).
Add on the $750 welcome bonus for meeting the minimum spend of $7,500 in three months and you could earn at least $2,000 cash back in your first year with the Chase Ink Business Cash card.
Two Card Strategies:
If you’re willing to use two or more cards to optimize your cash back, consider getting additional cards. Choose from cards that always give a higher return on certain categories and those that give more cash back in rotating categories. A label maker can come in handy to update the categories offering increased cash back four times a year.
It makes sense to pair your choice of flat cash back cards above with a variable cash back card.
The Chase Freedom Flex card with it’s 5% cash back at grocery stores and on rotating categories is a great option. It also offers some travel perks like travel cancellation or interruption insurance.
Small business owners pursuing a two-card strategy could pair the Chase Ink Business Cash card (variable cash back) with the Chase Ink Business Unlimited (flat rate cash back) or Chase Ink Business Preferred (valuable Chase Ultimate Reward points) and $1,500 in combined welcome bonuses between the two cards (when spending $7,500 on each in the first three months).
Three Card Strategies:
The point of this article is finding a card or two that can give you simple cash back for those who don’t want to fuss too much with credit card rewards. Adding a third card to your armamentarium may be counter to our goals here.
Nevertheless, it may be as simple as adding a business card to a two-card personal credit card strategy or vice versa.
If we’re looking solely at personal cards, you’ll want to add a card that gives you increased cash back in one or more categories that the other cards don’t.
A pretty sweet three-card strategy could look like this:
- 6% back on up to $6,000 in groceries with the Blue Cash Preferred.
- 4% back on dining with the US Bank Altitude Go Card.
- 3% back on gas with the Blue Cash Preferred.
- 2% back on everything else with the Citi Double Cash Card.
The welcome offers after meeting minimum spending requirements in the first year for these two cards that offer them add up to $500. You’ll have a $95 annual fee for the Blue Cash Preferred card.
For a no annual fee option, you could downgrade to the Blue Cash Everyday card with a phone call at the end of that first year.
Additional options to swap for those above for a no-annual-fee setup include the two Chase Freedom Cards. Each of these has a $200 when you spend just $500 in the first three months with the card.
- 5% back on rotating categories that change quarterly with the Chase Freedom Flex card.
- 1.5% back on everything else with the Chase Freedom Unlimited Card.
card_name
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intro_apr_rate,intro_apr_durationRegular APR
reg_apr,reg_apr_typeRecommended credit
credit_score_neededBonus Intro Rewards
bonus_miles_full read morecard_name
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reg_apr,reg_apr_typeRecommended credit
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Four Card Strategies:
Did you not read what I said about simplicity?!?
If you’re looking to carry four or more cards, it’s time to look beyond cash back cards to cards that offer travel rewards and other perks. You can find them here:
- Credit Cards for People Who Love Free Travel and Money
- The Best Business Credit Cards for Your Small Business
- Travel Insurance: Evacuation Coverage & Other Credit Card Perks
Chase 5 / 24
As you devise your cash back strategy, keep in mind the fact that Chase usually will not issue a new card to someone who has opened 5 new credit card accounts in the last 24 months (the 5 / 24 Rule).
Business cards from Chase, American Express and Citi Bank do not count, but most other business cards and personal cards do.
Note that while new Chase business cards may not count against your total, they typically will only approve you for a Chase business card if you have had fewer than five new accounts in the last two years.
Given this limitation, if there’s a chance you’ll apply for more than five cards in the next two years, I recommend starting with Chase cards.
It’s also a good idea to pick up no more than two or maybe three personal cards in a year. I also have a preference for certain business cards that will not count against your total.
Also, keep in mind that other banks will look at your total new accounts and you can be denied no matter how good your credit is. It’s not just Chase, but their limitations seem to be the most well-known and best-defined.
Other recommendations for managing multiple credit cards include:
- Always autopay.
- No companion cards.
- Don’t carry a dozen cards.
- Always pay your balance in full.
- Don’t stress. Perfection is not required.
For rationale and more details, please read the tips section in my master post, Credit Cards for People Who Love Free Travel and Money.
Earn that Cash Back!
We’ve covered a lot of ground today. To jump back to the different categories of cash back cards, use these handy buttons.
Do you prefer cash back credit cards? Share your strategies and tips with your fellow readers below!
To see rates and fees for featured cards from American Express: Blue Cash Preferred Card (rates and fees), Blue Cash Everyday Card (rates and fees), American Express Blue Business Cash (rates and fees), American Express Gold Card (rates and fees), American Express Platinum Card (rates and fees), Blue Business Plus Card from American Express (rates and fees), American Express Business Gold Card (rates and fees, and AmEx Business Platinum (rates and fees).
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43 thoughts on “The Best Cash Back Credit Cards in 2023”
Alliant now has no annual fee as long as you keep $1000 in an Alliant checking account and transfer some small amount of money each month (I automatically transfer $5), then it’s 2.5% cash back on up to 10k of purchases a month. No foreign transaction fees, either. It’s wild to me that people still have the Quicksilver when they can get the Alliant. 1.5% is peanuts!!!
Alliant isn’t a small regional credit union, it’s the credit union for United Airlines.
Unlike Chase etc, Alliant doesn’t offer referral fees, so that’s probably why it flies under the radar. But it’s a great card. I’m trying to get into other CCs, but they just…don’t seem to offer more beyond a sign-up bonus; it’s hard to get more than 2.5% back even with a wildly complex Chase strategy- correct me if I’m wrong on this, but that’s been my experience.
I average more than 2.5% back with a simple 2-card Chase Strategy, and it doesn’t involve opening Chase savings or checking accounts or setting up automated monthly deposits into them.
I just use the Chase Sapphire Reserve for dining and travel and the Chase Freedom Unlimited for most everything else.
The Alliant strategy does sound simpler than the Merrill / BoA strategy that requires a six-figure brokerage account, though, I’ll give you that!
Best,
-PoF
I LOVE CREDIT CARDS!!! So I appreciate the recommendations. I would much rather get a credit card through a personal finance blog recommendation over Nerdwallet, for example.
PoF, question. If someone does sign up through your link, do you have knowledge of our information? I’m especially looking into the US Bank Altitude Go Card.
Also, I would like to suggest adding Citi Custom Cash Card that just came out recently. It looks like a great card.
Good question, and I appreciate the support.
To answer the question, no, I receive no info other than the number of referrals who apply for a card and how many of those applications are approved. On the CardRatings affiliate dashboard, I can see which cards were approved and in what quantity, but I see no identifying information as to the recipients whatsoever.
Thanks for the tip on the Citi card.
Cheers!
-PoF
hi PoF,
just wondering why you recommend against using a companion card? i assume you mean that your spouse shouldn’t be an additional authorized user on your credit card when you recommend against using companion cards?
i usually have my hubby as an authorized user on my credit card so that we can rack up more spending that way so that we reach the amount required to get the bonus for the current credit card in use. we aren’t big spenders.
would love your insight.
thanks!
Nicole
Thanks AUTHOR, words are too small for the value you add through your content, This is the best guide I have seen so far on the internet.Business cards offering cash back as a flat percentage was easy to understand with comprehensive and easy explanation.
Hey Lief great summary. I actually have a plethora of cash back cards, a few of them have rotating 5% categories for which I use Evernote to keep track. I keep 3-4 credit cards in my wallet based on what is getting me the most cashback, but recently the amazon prime card is offering until 2/2021 4% cashback on restaurants, gas and drugstores! ends up right now I carry that card as well as the AMEX Preferred for groceries mentioned above.
Also I always took advantage of opening a credit card to get the bonus rewards, and then 2 years later when the inquiries dropped off my credit report my debt to utilzation ratio was awesome which jacked up my credit score when I applied for a mortgage. Would be a great post idea for ya if you had a similar experience to mine.
Sounds like a great guest post to me!
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Copied and pasted from the linked post:
“No Companion Credit Cards
You will often be enticed to pick up a second card for a spouse on the same account with a bonus of points or miles that might be worth a small fraction of the welcome bonus.
I advise against this.
The better option is to apply for a new card under your spouse’s name and social security number, using household income on the application.
By opening a new account rather than obtaining a companion card, you can get double the bonus for each card you choose to acquire. Would you rather have 55,000 Chase Ultimate Rewards points or 100,000 Chase Ultimate Rewards points?”
You’re basically cheating yourself out of hundreds of dollars in welcome bonus points by getting a companion card rather than opening a new account — and a companion card DOES count as a new account anyway when Chase looks at how many accounts you’ve opened in the last two years. If the number is 5 or more, you won’t be approved.
Best,
-PoF
Just curious why you don’t recommend having companion cards when managing multiple credit cards?
Hey wonderful post, you have explained everything very nicely. Each and every point is explained in a proper way so anybody could understand very easily. Your way of writing a post is very good and I can see by reading your post that you have a lot of experience in blog writing. I just have a small request, I have also written a blog post and it would be very helpful for me if you would just read it and tell me your views about it and suggest we ways to improve my post.
bad credit cards for best cash was really helpful and i got to know about how to apply for a best article for understanding.
Marketing credit card affiliate programs is quite profitable, isn’t it?
Nice post…
Just paid off my credit cards (most of them) and feels so good. 🙂
Great List!
Have you ever deployed the Barclays Uber Visa credit card?
4% dining/BARS!
3% travel/hotels
2% online shopping, Uber&Lyft
1% everything else.
Solid rewards for no annual fee.
USAA 2.5% flat cash back on everything. Simple.
The USAA Limitless is a great card if you’ve got it. Unfortunately, it’s not currently open to new applications.
Best,
-PoF
I would also suggest the Citi DoubleCash card as a one-card option, or as the default card other than the ones that offer better bonus categories. The Citi DoubleCash offer 2% cash back on everything (1% at purchase and another 1% at payment) with no annual fee. Then you can use cards like the AmEx Preferred Cash for 6% on groceries and the Chase Freedom and Discover It for 5% cash back on rotating categories quarterly.
Yes — that would work well.
I have a friend that would constantly ask if the place we were at took Discover. The answer was usually “no,” and it became a running joke. I imagine that’s changed some by now. And I would hope he’s added another card to his collection by now!
Cheers!
-Pof
I have had the Discover It card for a few years now and haven’t had any problems with acceptance anywhere. Guess it is a mainstream card now.
2% flat UNLIMITED cash back into an investment account with no annual fee. There is no other card that does this…why would not list the Fidelity rewards card at the top of this list?!?
I think the Fidelity Rewards Visa Signature Card is a great card — the order is not meant to be a rank list. You may have noticed I also included it as part of a three card strategy.
I think some people have hangups about starting a relationship with a new brokerage just because of a credit card — especially if they’re already using a different low-cost brokerage like Vanguard or Schwab. But I certainly recommend the Fidelity card to anyone.
One advantage that Chase Freedom and Chase Freedom Unlimited cards have is that, when paired with a Chase Sapphire card, the points become more valuable. For example, all points earned with the Chase Freedom Unlimited are worth 2.25 cents when paired with the Chase Sapphire Reserve and used to purchase travel via the Chase portal. The first $20,000 charged to the Unlimited card are actually worth 4.5 cents each. Such pairings are beyond the scope of this article, in which I try to keep things simple, but you can do better than 2% back in certain situations.
Cheers!
-PoF
Cheers!
-PoF
For travelers who want simple one company–Chase, 3 cards:
1.Get the Chase Unlimited–get 3% bonus now, for up to 20k spending if don’t have. 1.5% after. Use for all NON travel, NON 5% category spending.
2. Get Chase Freedom–use for 5% categories only, up to 1500 every quarter–this quarter–groceries. Get gift cards if don’t spend $1500.
3. Get Chase Reserve–best, or Chase Sapphire. gives you access to Unlimited travel points. Reserve–gives you Primary rental coverage, and 3 pts/$ travel/restaurants, and 50% bonus on travel bookings on their site (50k points worth $750 in travel), $450 annual fee offset by $300 in travel credits yearly, so benefits cost only $150/year. Chase Sapphire–Car rental coverage is secondary to your auto policy, just 2pts/$ for travel/restaurant, and only 25% bonus on bookings (60k points worth $750 travel), costs $95/year. You can transfer ALL chase Unlimited or Chase Freedom points to Chase Reserve/preferred. You can also transfer to travel partners, including Southwest! I once traveled Chicago to Baltimore, 3 round trips for 21,000 points on Southwest–great deal, so only cost me 21k in Chase Unlimited points I transferred. A more normal one way flight on Southwest is 10-12k points–costs about $160, so points are bonus over cash. Because I transfer all Chase Unlimited and Freedom points to my Unlimited points, I find much more valuable than 2% double cash Citi card.
I think you’re using ‘Chase Reserve’ and ‘Chase Sapphire’ when you mean ‘Chase Sapphire Reserve’ and ‘Chase Sapphire Preferred’, respectively. But the 3 card strategy is my current medium-term strategy. Have the first two and trying to decide between Reserve and Preferred.
Yes, it’s the Chase Sapphire Preferred (mid-tier card) and Chase Sapphire Reserve (premier card). The latter comes with a hefty annual fee, but much of that is offset with reimbursed travel costs. The Sapphire Preferred currently has the higher welcome bonus.
It might make sense for a couple to each have one of the two cards (so you have both as a couple).
Cheers!
-PoF
Great Post, We have found the Amex Blue preferred (only groceries), Costco (gas, restaurants, travel) and Fidelity (everything else) has been a great setup for us. Was happy to see each of them remaining among the top of the pack as we haven’t looked at optimizing this situation for a while.
Looks like a great 3-card strategy, DZ!
You’ve got to be a bit careful with the “grocery” category. If you buy most of your groceries from a Super Walmart or Target, that card won’t typically give you the 6% back. I’m not sure about “warehouse” chains like Sam’s or Costco, but my guess is those wouldn’t count, either.
Best,
-PoF
To me the #1 cash back card for higher spenders is different. This would be the Alliant Credit Union Visa signature. It does have an annual fee of $95 – but the whole first year you receive 3% unlimited, then 2.5 % forever after. So even after the first year, if you spend 1600/mo, this will beat a no-fee 2% credit card after paying the $95 fee. And no hoops to jump thru, no hassles to consider.
That is quite the deal. I don’t have the capacity to keep up with local or regional credit unions and the cards they offer, but if you can get > 2% cash back on a card, that’s a nice and simple one-card strategy.
Best,
-PoF
Alliant now has no annual fee as long as you keep $1000 in an Alliant checking account and transfer some small amount of money each month (I automatically transfer $5), then it’s 2.5% cash back on up to 10k of purchases a month. No foreign transaction fees, either. It’s wild to me that people still have the Quicksilver when they can get the Alliant. 1.5% is peanuts!!!
Alliant isn’t a small regional credit union, it’s the credit union for United Airlines.
Unlike Chase etc, Alliant doesn’t offer referral fees, so that’s probably why it flies under the radar. But it’s a great card. I’m trying to get into other CCs, but they just…don’t seem to offer more beyond a sign-up bonus; it’s hard to get more than 2.5% back even with a wildly complex Chase strategy- correct me if I’m wrong on this, but that’s been my experience.
I average more than 2.5% back with a simple 2-card Chase Strategy, and it doesn’t involve opening Chase savings or checking accounts or setting up automated monthly deposits into them.
I just use the Chase Sapphire Reserve for dining and travel and the Chase Freedom Unlimited for most everything else.
The Alliant strategy does sound simpler than the Merrill / BoA strategy that requires a six-figure brokerage account, though, I’ll give you that!
Best,
-PoF
For savvy credit card users, you can get up to 5% cash back on ALL purchases by using the Chase Ink Cash business card and buying fee free Visa debit cash cards that you can use anywhere that accepts Visa cards.
This is an incredibly timely post because currently, Staples is running a promotion where you can buy fee-free Visa cards until May 11. Just make sure to use the Chase Ink Cash or Plus card to get the 5% (or 5X reward points) bonus on office supply stores! That’s what I do and that’s how I rack up hundreds of thousands of points for every day spending.
5% cash back is nice. But for the truly savvy credit card users, you can get a return of 10% (or higher) in travel rewards if you know how to redeem points for maximal value. 🙂
Cheers!
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Pretty impressive and comprehensive list POF.
I personally use 2 cards as my main staple. The one I use predominantly is the Chase Freedom Unlimited (1.5% cash back). My 2nd card is a Sam’s Club credit card which gives me I think 3% on stuff like restaurants so I use that one whenever I go out to eat.
Although the points are great, it is sometimes better to ask if the vendor will give you a discount if you pay in cash (and it usually is a better deal than the point value lost). I have asked my orthodontist, dentist, and even the company that recently installed my front door, if they offer cash discounts and they all said yes and the amount saved was far and away more than the 3% surcharge they have to pay to credit card companies (so my guess is there are some other factors that make them want to give discount even beyond the fees credit card companies charge them (probably a hassle and time delay to get money from them).
That last one is a great tip. I believe our orthodontist offered a 5% cash discount (for using both cash and paying up front).
I’m using a Chase Freedom card in the 5% back categories and in the occasional instance when the merchant won’t take American Express. Otherwise, I’m using a Hilton Honors Ascend AmEx in an attempt to earn diamond elite status (after a $40,000 spend in the year — good for the rest of the year and the following year).
Cheers!
-PoF
Sam’s Club Card pays:
– 5% back for all gasoline purchases
–3% back for restaurant and travel purchases
–1% back on everything else
Even with the Sam’s Club membership fee of $45 a year, this is deal that is hard to beat.
The only problem when paying cash is that the merchant will not only avoid paying the CC fee, but they will also evade their tax, i find it annoying when I have to pay so much tax, and somebody else can just grab cash and put it their pocket as spendable cash. If your orthodontist is in 37% tax bracket, for every $100 you pay him in cash, he has successfully evaded $37 in tax plus whatever his state income tax is…
That’s assuming everyone who accepts cash also chooses to commit tax fraud.
Tax is owed on every dollar collected regardless of what format is used to pay. Cash makes it easier to commit fraud, but I wouldn’t assume your neighborhood orthodontist is collecting cash off the books.