Best Cash Back Credit Cards of 2024: Maximize Your Rewards
Looking for the best cash back credit cards of 2024? You’ve come to the right place. At The Bullish Capital, we provide comprehensive credit card reviews and comparisons of top cash back credit cards to help you get the most out of your spending. Whether you want to earn cash back on groceries, dining, or everyday purchases, our guide highlights the best options tailored to your financial needs. Discover hidden gems and standout cards with unbeatable rewards, low fees, and generous sign-up bonuses. Start maximizing your cash back today!
The Apple Card, issued by Goldman Sachs, stands out for its sleek design and seamless integration with Apple devices. It is crafted for those who prefer a straightforward, no-hassle cash back experience. Key features include:
- Daily Cash Back: Earn 3% on Apple purchases and at select merchants like Uber and Nike, 2% when using Apple Pay, and 1% on all other purchases.
- User-Friendly App: The Wallet app on iPhone offers intuitive tracking of spending and cash back earnings, with privacy and security being top-notch.
- No Fees: Apple Card has no annual fee, no foreign transaction fees, and no late fees.
- Interest Rates: The interest rates vary based on creditworthiness, but the card promotes a transparent approach to managing payments and interest.
Bottom Line: The Apple Card is excellent for Apple enthusiasts and those who value a user-friendly experience with daily cash back. However, its lower overall cash back rates may not make it the best choice for non-Apple users.
Pros:
- Seamless Apple integration and daily cash back.
- No fees and user-friendly app interface.
- Limited to Apple Pay for 2% cash back, restricting its utility where Apple Pay is not accepted.
- Lower base cash back rate compared to other cards.
Apple Credit Card
The Apple Card offers an innovative user experience with features like daily cash back. However, it may not be the revolutionary product it was initially expected to be. It stands out with its seamless integration with Apple Pay and the iPhone, but it lacks some of the extensive rewards and benefits offered by other top-tier cash back credit cards.
This card is ideal for those who want flexible cash back options tailored to their spending habits. It offers:
- 3% Category Choice: Earn 3% cash back in one of six categories you can change monthly: gas, online shopping, dining, travel, drugstores, or home improvement.
- Grocery and Wholesale Clubs: Earn 2% cash back at grocery stores and wholesale clubs, capped at $2,500 in combined quarterly purchases.
- 1% on Other Purchases: All other purchases earn 1% cash back.
- No Annual Fee: Enjoy all these benefits without an annual fee.
- Preferred Rewards Program: Members of the Bank of America Preferred Rewards program can earn up to 25% to 75% more cash back.
Bottom Line: The Bank of America® Customized Cash Rewards Credit Card is excellent for consumers who want customizable rewards with no annual fee, particularly those who spend a lot on groceries and wholesale clubs.
- Flexible 3% category choice and strong rewards on groceries.
- No annual fee and enhanced rewards for Preferred Rewards members.
- Cash back on 3% and 2% categories is capped at $2,500 quarterly.
- Requires active management to maximize benefits from the 3% category.
Bank of America® Customized Cash Rewards Credit Card
The Bank of America® Customized Cash Rewards Credit Card offers flexible earning options, including 2% cash back at grocery stores and wholesale clubs, plus 3% cash back in a category of your choice such as gas, online shopping, dining, travel, drug stores, or home improvement. This card allows users to tailor their rewards to fit their spending habits, making it a versatile option for various lifestyles.
The Blue Cash Preferred® Card is designed for high-spending families, particularly those who spend heavily on groceries and streaming services. Key features include:
- High Rewards on Groceries: Earn 6% cash back on up to $6,000 per year at U.S. supermarkets, then 1% thereafter.
- Streaming Services: Get 6% cash back on select U.S. streaming subscriptions.
- Transit and Gas: Earn 3% cash back on transit, including taxis, rideshares, parking, tolls, trains, buses, and more, and 3% at U.S. gas stations.
- 1% on All Other Purchases: All other purchases earn 1% cash back.
- Annual Fee: $0 introductory annual fee for the first year, then $95.
Bottom Line: The Blue Cash Preferred® Card from American Express is ideal for families with high grocery and streaming service expenditures, offering substantial rewards that can easily offset the annual fee.
- Excellent rewards rate on groceries and streaming services.
- Comprehensive cash back options, including transit and gas.
- $95 annual fee after the first year.
- The 6% back on groceries is capped at $6,000 annually.
Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express offers an impressive 6% cash back at U.S. supermarkets on up to $6,000 in annual spending, along with other valuable perks like 6% on select U.S. streaming subscriptions and 3% on transit and U.S. gas stations. However, it does come with a significant annual fee, which might offset some of the benefits for lower spenders.
- Unlimited 1.5% Cash Back: Earn 1.5% cash back on every purchase, every day, with no categories to track or limits to monitor.
- No Minimum Redemption: Redeem your cash back at any time and for any amount.
- No Annual Fee: Enjoy the benefits of the card without an annual fee.
- Introductory APR: 0% APR on purchases and balance transfers for the first 15 months, then a variable APR.
Bottom Line: The Capital One Quicksilver Cash Rewards Credit Card is perfect for those who want a hassle-free, flat-rate cash back card with no annual fee and no complicated rewards structure.
- Straightforward, unlimited cash back on all purchases.
- No annual fee and no minimum redemption threshold.
- Cash back rate of 1.5% is lower than some other cards with category bonuses.
- No additional perks beyond cash back.
Capital One Quicksilver Cash Rewards Credit Card
The Capital One Quicksilver Cash Rewards Credit Card is a trailblazer in offering unlimited 1.5% cash back on all purchases with no minimum redemption amount. This straightforward rewards structure makes it an excellent choice for those seeking simplicity and consistency in earning cash back without worrying about categories or spending caps.
The Chase Freedom Flex® offers a unique combination of rotating categories and fixed bonus categories. Key features include:
- 5% Rotating Categories: Earn 5% cash back on up to $1,500 in combined purchases in rotating categories each quarter you activate.
- Fixed Bonus Categories: Earn 5% on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores.
- 1% on Other Purchases: All other purchases earn 1% cash back.
- No Annual Fee: Enjoy these rewards without an annual fee.
- Introductory APR: 0% APR on purchases for the first 15 months, then a variable APR.
Bottom Line: The Chase Freedom Flex® is ideal for those who can maximize the 5% rotating categories and appreciate bonus rewards on dining and travel, offering significant value without an annual fee.
- High cash back potential with rotating and fixed bonus categories.
- No annual fee and access to Chase’s valuable Ultimate Rewards program.
- Requires active management to maximize rotating categories.
- 5% cash back is limited to $1,500 in spending per quarter in rotating categories.
Chase Freedom Flex®
The Chase Freedom Flex® offers a compelling rewards structure with 5% cash back on rotating categories each quarter, plus fixed bonus categories like 3% on dining and 5% on travel booked through Chase Ultimate Rewards. Cardholders also earn 1% on all other purchases. This combination of versatile rewards and valuable perks makes it an excellent choice for those who can optimize the rotating categories and enjoy added benefits like purchase protection and extended warranty coverage.
The Citi Double Cash® Card is one of the best flat-rate cash back cards available, ideal for straightforward, consistent rewards. Key features include:
- 2% Cash Back: Earn 2% cash back on every purchase — 1% when you buy and 1% when you pay off the purchase.
- No Annual Fee: All rewards come with no annual fee.
- Simple Redemption: Redeem your cash back as a statement credit, direct deposit, or check.
Bottom Line: The Citi Double Cash® Card is perfect for those who prefer a straightforward, high flat-rate cash back card with no annual fee and no hassle of managing categories.
- High flat-rate cash back with no annual fee.
- Simple, easy-to-understand rewards structure.
- No bonus categories for higher rewards.
- Foreign transaction fees apply.
Citi Double Cash® Card
The Citi Double Cash® Card is a standout for its straightforward rewards program, offering a solid 2% cash back: 1% when you make a purchase and an additional 1% when you pay it off. This card has no annual fee, making it a cost-effective option for those who value simplicity and consistent rewards. Cardholders also benefit from Citi’s range of protections and perks, including extended warranty and purchase protection.
Top Cash Reward Cards
Credit cards offer convenience and rewards, but they also come with potential risks. Here’s a detailed look at common risks and how to mitigate them effectively:
High Interest Rates
Risk: Carrying a balance results in accumulating interest charges.
Mitigation: Always pay your balance in full each month. If that’s not possible, aim to pay more than the minimum to reduce your balance faster and minimize interest.
Debt Accumulation
Risk: It’s easy to overspend with a credit card, leading to high debt that can be challenging to pay off.
Mitigation: Set a strict budget and track your spending closely. Only use your credit card for planned purchases that you know you can pay off each month.
Impact on Credit Score
Risk: Late payments, high balances, and frequent credit inquiries can negatively affect your credit score.
Mitigation: Make all payments on time, maintain a low credit utilization ratio (preferably below 30%), and limit new credit applications. Regularly monitor your credit report for accuracy.
Fraud and Identity Theft
Risk: Credit card fraud and identity theft are serious concerns that can cause financial and personal stress.
Mitigation: Use secure websites for online purchases, enable alerts for all transactions, regularly monitor your account statements, and report any suspicious activity immediately. Consider using virtual card numbers for online transactions.
General Tips for Safe Credit Card Use
- Pay Your Balance in Full: Avoid interest by clearing your balance every month.
- Track Rotating Categories: Some cards offer higher rewards for specific purchases in rotating categories. Stay informed and adjust your spending to maximize rewards.
- Understand Redemption Options: Know the best ways to redeem your rewards for maximum value.
- Leverage Additional Benefits: Utilize perks like travel insurance, purchase protection, and extended warranties offered by your credit card.
Understanding how your credit card usage affects your credit score is crucial for maintaining good credit. Here’s a detailed breakdown:
Payment History (35%)
Impact: Timely payments boost your score, while late payments can severely damage it.
Best Practice: Always pay at least the minimum payment by the due date to maintain a positive payment history.
Credit Utilization (30%)
Impact: This ratio of your credit card balances to your credit limits. A lower ratio improves your score.
Best Practice: Keep your credit utilization below 30%, ideally below 10%, to positively influence your score.
Length of Credit History (15%)
Impact: The longer your credit history, the better it is for your score.
Best Practice: Keep older accounts open and active to extend your credit history.
Credit Mix (10%)
Impact: A diverse mix of credit types, such as credit cards, loans, and mortgages, can enhance your score.
Best Practice: While having a variety is beneficial, don’t open new accounts solely to diversify your credit mix.
New Credit (10%)
Impact: Opening multiple new accounts in a short time can lower your score due to several inquiries.
Best Practice: Apply for new credit only when necessary to avoid negatively impacting your score.
Selecting the right credit card depends on your financial needs and lifestyle. Here are key factors to consider:
Interest Rates (APR)
Consideration: Look for a card with a low APR if you plan to carry a balance to save on interest.
Tip: Compare APRs, including introductory rates and the standard rate post-intro period.
Fees
Consideration: Be aware of annual fees, late fees, and foreign transaction fees.
Tip: Choose a card with fees that are justifiable or avoidable. High rewards can outweigh fees for some cards.
Rewards Programs
Consideration: Select a card with rewards that match your spending habits (cash back, points, or miles).
Tip: Understand the terms for earning and redeeming rewards.
Credit Limit
Consideration: Ensure the credit limit meets your spending needs without encouraging overspending.
Tip: Start with a manageable limit and request increases responsibly.
Benefits and Perks
Consideration: Look for additional benefits like travel insurance, purchase protection, or extended warranties.
Tip: Evaluate perks based on your lifestyle and spending habits.
Customer Service
Consideration: Good customer service is essential for resolving issues and support.
Tip: Check reviews and consider the issuer’s reputation for customer support.
