In your opinion, what’s the best cash back card?

In the world of credit cards today, the debate over the “best” cash-back card continues to rage. Of course, “best” is subjective as what constitutes a great cash-back card to me might not be the same as what you believe in terms of benefits, perks, and percentage back. 

However, one Redditor posting in r/CreditCards is trying to get Reddit’s collective mind together to determine the best cash-back credit card you can get today. The answer isn’t simple, nor universal, but there is hope that we can get to the bottom of this debate. 

Unfortunately, the Reddit comment section rarely agrees and this is the exact case here, but this doesn’t mean there isn’t one cash-back card to rule them all. 

The Types of Cash-Back Credit Cards

Before correctly choosing the “best” cash-back credit card available today, you must understand what types of cards are available in this category. To try and differentiate themselves in the market, there are various cash-back card types, some more appealing than others based on your spending and shopping habits. 

The Flat-Rate Card

If you’re wondering what the most common and arguably the most popular type of cash-back credit card is today, it’s the flat-rate card. Cards of this type will offer you a standalone percentage back on every transaction you make. This includes cards like the Capital One Quicksilver, Fidelity, Citi Double Cash, and the Wells Fargo Active Cash. Usually, cards in this category offer between 1.5% and 2% back on all transactions. 

The Choice Card

A growing idea in the cash-back credit card world, Bank of America’s Customer Cash Rewards card leads the way in this space. By enabling you to select one category type that will earn you 3% cash back, you can hopefully build up a nice pool of rewards. However, while cards in this space offer an increased percentage back on one or maybe even two categories, the rest of your purchases are flat rate at 1%. 

The Fixed Bonus

When you want a credit card that gives you a significant boost in one specific category, like grocery shopping or gas stations, you can look for a cash-back card that is considered a “fixed bonus” card. The best example is the American Express Blue Preferred card. 

As this card offers you 6% cash back on all grocery purchases all year, you can build up a good rewards bank if you spend as much as I do at the grocery store every month. If I looked at my cash back rewards just for grocery shopping all year on this card, I’m guessing I would end up with around $720 annually just in this category alone. 

The Quarterly Rotator

The rotating category is arguably the second most popular cash-back card type, behind the fixed rate type. Popularized by the Chase Freedom Flex and Discover it card, these cards offer 5% cash back on select categories every quarter (every three months). 

This could mean that between January and March, you’ll earn 5% at grocery and drugstores and from October to December, you might earn 5% cash-back at Walmart and Target. When appropriately used, these card types can lead to smart shopping and significant earnings. 

What Do You Need From A Cash-Back Credit Card? 

To get to the bottom of the best cash-back card, you must consider what you want to spend your money on. This might mean sitting down and making a list of the monthly expenses you incur, and seeing which of these gets charged. Your mortgage and car payments are undoubtedly two of your biggest expenses and will not likely be charged, so this rules them out. 

This means you can go down your list and see your next largest expenses. Groceries and transportation expenses are undoubtedly near the top of most lists, followed by utility bills, cell phone bills, medical expenses like prescriptions you pick up monthly, and entertainment like dining out, streaming services, and more. 

There is a very good chance that if you sit down and make a list, in order, of your biggest expenses, you’ll know exactly which cash-back card is best for you. 

The Best For Most People 

If there has to be just one card that combines all the best benefits and an opportunity to make big cash back, the Chase Freedom Unlimited is the way to go. While cards like the Citi Double Cash offer you an extra 0.5%, it doesn’t come with all of the “perks” you get with the Chase Freedom Unlimited. 

Starting off, you get 1.5% on all purchases, which means you’re guaranteed this amount on everything you buy with the card, forever (and the points never expire). However, things get more interesting with the Chase card when you get 3% cash-back on every restaurant purchase, whether dine-in or takeout. You can also add another 3% on all drugstore purchases, so this card has a definite opportunity to earn a serious amount of cash-back by the end of every year. 

However, the Chase card jumps to the top of the list but not because of the $200 bonus or 0% APR for 15 months. Instead, it’s because of the purchase protection you get with the card on all eligible purchases for 120 days from the date of purchase. It’s also because of the extended warranty protection you receive, doubling the warranty on any eligible purchase. 

In addition, you also get trip cancellation and interruption insurance, travel and emergency assistance, plus auto rental coverage. There is also a 5% cash back bonus on any travel you book through Chase travel and 5% on all DoorDash deliveries and Lyft rides you take. 

There is little question that the Chase Freedom Unlimited, according to Reddit, is arguably the best 1.5% cash back card you can find today. The challenge is that when you look at cards that offer 2% cash back, you lose many extra perks like boosts to your restaurant and drugstore purchases, which helps make the Chase Freedom Unlimited an easy winner. 

The Runner Up

With the Citi Double Cash card adding back its extended warranty protection in late 2024, it’s an easy runner-up, according to the Reddit post and its comment section. While Chase Freedom Unlimited gets more votes, the 2% you can earn with the Citi Double Cash makes it an easy choice as the second best credit card. 

Additionally, you can earn 5% on any trip you book through the Citi Travel portal and there are no category restrictions or limits on how much cash back you can earn. You also get a 0% intro APR for 18 months, which is three more months than the Chase Freedom Unlimited currently provides. 

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