Once you create a routine habit to build your savings, your next goal should be to optimize the way you spend your money.
We all have the recurring grocery bills, gas, utilities, and so on. Why not squeeze some of those expenses into cash savings?
I’m gonna cover cash back type credit cards below, specifically the top 5 most popular cash back credit cards on the market today for 2020.
With airline credit cards, you get miles for every dollar you spend.
With a cash back credit card, you get some money back for every dollar you spend.
The most common cash back offer is usually 1% back on everything you spend. Credit card companies have been getting creative in offering different incentives for different types of purchases.
I think this is based on the private relationships that the specific credit card company might have with the vendor.
For example, one credit card would offer a clean 1% cash back on all the different purchases you make.
Another will offer 1% cash back on groceries, but 2% cash back on all gas station expenses, as long as they’re with one of their partner companies.
Knowing this, I try to re-research my top 5 cash back card options so I can get an updated idea on what’s the hottest in the market.
Please note, I have a personal finance rule for myself, that I would love for you to apply too.
Review all 5 cash back credit card options below, see which one fits best for your lifestyle, keeping in mind that you’ll use this for the long term.
It’s okay to have multiple credit cards, just don’t overdo this. You shouldn’t be shopping for a new credit card every year.
Let’s see which card works best for you and your family.
1. Citi Double Cash Card
Annual Fee: $0
Minimum Credit Requirement: Excellent (800+)
With no interest for the first 18 months, this card offers a 1% cashback on all purchases.
On top of this, you get an additional 1% cashback if you pay your bills on time. This 2% cashback combined with the no-interest payments for the first 18 months is a nice upgrade over the usual flat 1.5% cashback.
There is a $0 annual fee.
If you spend a lot, then this card is definitely for you. This card does require you to have excellent credit, and therefore, not everyone is eligible for this card.
There are no cons to this card, but it is very hard to become eligible
for this card because of the credit requirements.
2. Wells Fargo Cash Wise Visa
This card offers a flat 1.5% cashback on all purchases. But that is not the best part.
The best part is that you earn an additional $150 if you spend $500 in the first three months. And you can earn 1.8% cashback instead of the
normal 1.5% if you pay with digital wallets like Google Pay or Apple Pay.
This offer is only available in the first 12 months. Like the previous card, this card also boasts a $0 annual fee. This card is best for those who don’t use their credit card often but rather are more accustomed to Paypal and other services of the sort.
You need excellent or good credit to be eligible for this card. The only problem with this card is that the 1.8% cashback is only for the first year.
After that, the 1.5% card is pretty normal compared to other cards.
3. Chase Freedom Unlimited
Like the Wells Fargo Cash Wise Visa, this card offers a flat 1.5% cashback on all purchases. Plus, you get $150 if you spend $500 in the first 3
With an annual fee of $0 (like the previous two cards), the first 15 months are interest-free! The best thing about this card is that you can spend your cashback on anything that you like.
You need excellent or good credit to be eligible for this card. There are no cons with this card, but there is also nothing too special compared to the other cards on this list.
4. Capital One Quicksilver Cash Rewards Card
While having a $0 annual fee, this card also boasts no foreign transaction fees.
That is truly a rarity among all cashback cards and this makes the Capital One Quicksilver Cash Rewards Credit Card best for those who frequently travel abroad.
You need excellent or good credit to be eligible for this card. This card
is truly excellent for those who travel, but otherwise, there are other cards on this list that are better in every other way.
5. Blue Cash Preferred Card from American Express
Annual Fee: $95
Minimum Credit Requirement: Good (700+)
Unlike the other cards on this list, this card does have an annual fee of $95. But that fee is completely worth it in my opinion.
This card gives you cashback on basically everything. Their welcome offer is that you get back $250 if you spend $1,000.
That itself takes care of the annual fees. We have not even gotten to
the best part yet.
Their cashback rate is 6% on purchases up to $6000, at supermarkets in the U.S. After that, the cashback rate comes down to 1%.
Plus, you earn 3% cash back at gas stations in the United States of America.
This 3% cashback applies to everything transit-related including, but not
limited to rideshares, tolls, and train fare. All other purchases have a 1% cashback.
Your bank account is interest-free for the first 12 months. This card is meant for those who have a lot of spending to do and a huge portion of their budget gets spent at travels and supermarkets.
If you are not someone who spend’s enough money in a year to make the $95 fees back, then this card is definitely not right for you.
You need excellent or good credit to be eligible for this card.
Which cash back credit card is best for me?
That honestly depends on your individual needs, like are you married with no kids, or do you have a household of 3 kids and 2 pets?
It’s also important to see how much you spend over a year, even a larger family can be more frugal and spend as much as a married couple with higher standards.
So, if you need to keep it quick and simple, look at how much you spend over a year.
Most credit cards give you an annual report of your spendings, which is very helpful in two ways.
- You can see how much you spent over the year.
- You can also see what categories had the most expenses.
Taking this in mind, if you spent a lot, and it’s in a variety of categories, then it might be best to spend the $95 annual fee and get the American Express Blue Cash Preferred Card.
It’s the only one that can get you up to a whopping 6% cash back on U.S. supermarkets (Walmart, Target, etc..) and streaming services (Hulu, Netflix, etc..).
Who has the best cashback credit card in general?
If you don’t want to spend anything on annual fees, and just want the best card, the Capital One Quicksilver might be the best bet at 1.5% cashback on everything you spend.
Take a look at your annual report from last year and see which one might be the best for your needs.