Fans of cashback credit cards how credit cards are great It rewards you for your spending while offering maximum flexibility in your redemption options.
But not all cash back credit cards are created equal. They are not standardized and vary greatly in terms of bonuses, perks and cashback rates. Compared to other rewards cards that can earn different values of points or miles depending on how you redeem them, the Cash Back Card makes it easy to know the exact amount every time you swipe your card.
The two main categories of cashback cards are fixed cashback cards and bonus/rotation category cards. Choosing the best choice for your needs depends on your spending habits and choosing a cashback card. It depends on what you expect from doing.
Here's everything you need to know about cash back cards in the fixed and bonus categories and how to do it. Choose the card that best suits your needs.
- 1 Recurring Cash Back Credit Card
- 2 Bonus Category Cash Back Credit Cards
- 3 Best Fixed Cash Back Cards of 2022
- 4 Best Bonus Category Cashback Cards of 2022
Recurring Cash Back Credit Card
The Recurring Cash Back Card gives you a fixed percentage back on every purchase, no matter what you buy. Many flat rate cards offer a cash back rate of 1.5%, but the best flat rate cards offer 2%. That means you'll receive $2 for every $100 you spend on your card.
Benefits of Flat Rate Credit Cards
- Hassle-Free Cash Back MethodA flat-rate cashback credit card is simple. You do not need to pre-purchase these cards to activate certain bonuses.
- All purchases qualify for cashback. Think about that flea market purchase last weekend, that new set of tires, or that trip to the water park that your kids have been wanting all summer. Get cash back on every purchase, no matter what.
- No spending cap. Cards in the bonus category often have capped reward rates once a certain spending threshold is reached. Flat rate credit cards have no such threshold. The reward rate is always the same.
Cons of Fixed Rate Credit Cards
- Reward rates typically do not exceed 2%.Most fixed rate credit cards offers 1% to 1.5% cash back on every purchase, although it is becoming more common to come across cards offering 2% cash back.
- Flat cashback on every purchase. This may be a benefit for some who prefer flexible spending, but not for consumers looking to maximize their rewards. will be refunded.
Who should get a flat rate card?
A flat rate card is simple. These are essentially “set and forget” reward systems. Because you don't have to think about which card to use for different purchases.
Fixed cashback cards are for people who don't want to track different bonus categories and don't forget to activate the bonus categories. These cards are also suitable for those who often use their cards to cover expenses not normally covered by the bonus category, such as paying bills or utility bills.
Bonus Category Cash Back Credit Cards
Bonus Category Cash Back Cards offer higher cash back percentages on certain categories of purchases, such as certain types of stores, restaurants, gas stations, travel, and others. offers a low flat rate of typically 1% on purchases of
Some bonus cash back cards have rotating cash back categories that change quarterly, while others offer the same high rates throughout the year. Some cards also offer the flexibility to choose your own bonus spending category or automatically provide bonus cash back on your largest qualifying spending category for the month.
Some cards have different cash back categories every quarter. Discover it® Cash Back and Chase Freedom Flex℠ require you to activate a new bonus category each quarter to earn a boosted rate.
Bonus categories usually have a cap and once the threshold is reached the cash back percentage drops to 1%. There is often an activation requirement to rotate cards to get higher rates.
Advantages of Bonus Category Credit Cards
- Can Earn a Higher Percentage of Cash Back. Earn a higher percentage of cash back in certain categories that change from year to year. We often offer a 5% (and sometimes more) back on eligible spend. This is well above the 1.5% average offered by most flat rate cards.
- Different cashback categories available. Bonus Category Cards allow you to earn boosted rates in a variety of categories that typically change on a quarterly basis. With a little planning, you can maximize your cash back in different categories.
Cons of bonus category credit cards
- Bonus categories usually have limits. Reward rate down to 1% when certain spending thresholds are reached may decrease. This varies by card.
- Maximizing reward categories can be difficult without planning ahead. Reward categories are constantly changing, so if at certain times of the year he spends more in one category, it can become difficult to maximize.
- Quarterly activation may be required.Some cards activate new bonus categories quarterly to earn boosted rates. need to do it. If you do not activate the bonus, you will not get the increased rate.
Who wins a bonus category card?
Cashback cards in the bonus or rotating category offer much higher earning potential than regular flat rate cards, but they are not for everyone. To get the most out of these cards, you need a clear picture of your personal financial situation. If you're the type of person who likes to track your spending and optimize which cards you use for various purchases, these cards are for you.
has a rotating bonus category. Be honest about whether remembering to enable categories every quarter is a burden. The activation process is usually as easy as tapping a button, but some users may prefer a more hassle-free reward structure.
Best Fixed Cash Back Cards of 2022
Wells Fargo Active Cash Card
- Reward Rate: Unlimited 2% Cash Reward on Purchases
- Welcome Offer: $200 Cash Reward Bonus when you spend $1,000 within the first 3 months
- Annual Fee : $0
- April: 19.24 percent, 24.24 percent, or 29.24 percent (variable)
The Wells Fargo Active Cash® Card has no maintenance fee and Receive unlimited 2% cash rewards on purchases with our no-fee rewards card. We also offer an introductory APR of 0% for 15 months on purchases from account opening and eligible balance transfers from account opening (then 19.24%, 24.24%, or 29.24% (variable APR) Continue).
Bank of America Unlimited Cash Rewards Credit Card
- Rewards Rate: Unlimited 1.5% cash back on all purchases (up to 2.62% for eligible Bank of America Preferred Rewards members)
- Welcome Offer: $200 when you spend $1,000 in the first 90 days Online Bonus Cash Rewards
- Annual Fee: $0
- April: 17.74% to 27.74% (Variable)
Simple Fixed Cash The back card, the Bank of America® Unlimited Cash Rewards credit card, is designed with loyal BofA account holders in mind. Unlimited 1.5 percent base rate increase for Preferred Rewards members. You can access unlimited cash back rates of 1.87 percent, 2.25 percent, or 2.62 percent depending on your participating tier.
Information about the Bank of America® Unlimited Cash Rewards credit card was last updated on December 1, 2022.
Citi Double Cash Card
- Reward Rate: Unlimited 1% Cash Back on Purchases, Plus 1% Cash Back on Payment for Purchases
- Welcome Offer: N/A
- Year Membership fee: $0
- April: 17.74% to 27.74% (variable)
The Citi® Double Cash Card is another example of a high-return, flat-rate card . It also has its own way of encouraging users not to go into debt. The cardholder receives 1% cashback on purchases and his 1% on balance payment.
Offers 0 impressive referrals. An 18-month percent APR period for eligible balance transfers (followed by a variable APR of 17.74 percent to 27.74 percent).
Best Bonus Category Cashback Cards of 2022
Blue Cash Preferred Card from American Express
- Reward Rates: US Supermarkets and Select US Streaming 6% on services (up to $6,000 per card) 1%), 3% on U.S. gas stations and transit, 1% on everything else
- Welcome offer: new card for first 6 years Spend $3,000 and get $250 statement credit months
- Annual fee: $95 ($0 introductory annual fee for first year)
- APR: 18.24% to 29.24% (variable )
The Blue Cash Preferred® card from American Express is a bonus category cash back card ideal for everyday use. Its highlights include an excellent 6% cashback rate on US supermarket purchases (capped at $6,000 annually, then 1%), 6% cashback on select US streaming services, higher than average Welcome Offer, and 0 included. Introductory annual interest rate for purchases and balance transfers (variable from 18.24% to 29.24%) for 12 months.
Chase Freedom Unlimited
- Reward rate: 5% on Lyft purchases (through March 2025), 5% on travel purchased through Chase Ultimate Rewards. 3% on purchases at restaurants and drugstores. 1.5% on everything else
- Welcome Offer: Get an extra 1.5% cashback on everything you buy (up to $20,000) in the first year (offer by Bankrate)
- Annual fee: $0
- APR: 18.74% to 27.49% (variable)
Chase Freedom Unlimited® offers great earning potential in the first year with bonus cashback at drugstores, Lyft rides and more. A new 5% cash back on travel purchased through Chase Ultimate Rewards also adds a lot of value. One of its best features is unlimited 1.5% cash back on all other purchases. This is more than most other bonus category cards offer for non-bonus category purchases.
So this is a bonus category card that can easily replace most standard flat rate cards. The combination of a generous introductory bonus and no annual fee makes it an easy choice.
City Custom Cash Card
- Reward Rate: 5% Cash Back (up to $500 each)
- Welcome Offer: 20,000 ThankYou Points — $200 Significant cash back — after spending $1,500 on first 6-month purchases
- Annual fee: $0
- APR: 17.74% to 27.74% (variable)
With the Citi Custom Cash℠ card, you no longer need to break down your monthly spending to maximize your rewards. No matter what you buy, your top spending category will be automatically selected each billing cycle and you'll get 5% cash back on spending in that category. There is a cap of $500 per billing cycle, after which you earn 1%.
When choosing which cash back card is best for you, it comes down to what you expect from the card. If you're not really interested in getting as much cashback as possible, one flat rate card is probably your best choice, as juggling multiple cards can seem daunting.
But if you want to maximize your cashback, one card can't cut it. In such cases, we recommend choosing one or more of the bonus category cash back cards for your major spend and pairing them with a good flat rate card for everything else.