Capital One Quicksilver Cash Rewards Credit Card
Our pick for: Flat-rate cash back bonus offer + 0% period for purchases
The original 1.5% flat-rate cash-back card still holds its own in a now-crowded field. The Capital One Quicksilver Cash Rewards Credit Card offers a compelling combination of a good rewards rate, redemption flexibility, sign-up bonus and introductory 0% APR period. Read our review.
An Exception To The Rule: Discover Cards Offer Cash Back At The Register
In a break from the usual, Discover cardholders CAN receive cash back, up to $120 in a 24-hour period at dozens of retailers. With this option, you can get cash back with a credit card at Walmart, Kroger, Dollar General and many other retailers
This “cash over your purchases” amount is subject to the same APR as your regular purchases . If you make sure and pay off your credit card statement balance each month, this essentially means that you’re making a cash withdrawal for free. It is convenient, for sure, but make sure you don’t treat it like “free money.” You will pay interest on the amount you get back if you don’t pay off your statement balance each billing cycle.
One more thing, you won’t earn rewards on the cash-over amount.
Shift Your Bills Around
If you can use your credit card for something you would normally pay for with cash , go ahead and free up that cash. This could be particularly helpful if you get a new credit card with an introductory no-interest offer that buys you time to catch up without accruing interest.
Some billers charge a convenience fee when you pay a bill with a credit card, so make sure to compare your overall costs before choosing the most affordable way for you to get cash. Ideally, the fee is less than the cash advance fee you would otherwise pay, but even if it isnt, if youre not hit with a higher cash advance APR, it may still be worth it.
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Can You Get Cash Back Off A Credit Card Cash Back Vs Cash Advance
When we talk about how to get cash back by using a credit card, its important to understand the difference between getting cash back rewards and getting cash as a cash advance. While cash back rewards are a return of a small percentage of money youve already spent, a cash advance is essentially a loan against the credit limit on your credit card.
When you take out a cash advance on your credit cardfor example, by using your credit card to get cash out of an ATMyou will likely be charged a cash advance fee. Youll also be subject to a high interest rate that begins to accrue immediately from the day of withdrawal. In short, a cash advance will likely cost you a lot of money and is rarely a good option, while cash back puts money back into your pocket for making purchases.
Chase Freedom Unlimited: Best For Intro Apr
Sign-up bonus: Earn a $200 bonus after spending $500 in their first three months from account opening. Earn 5% cash back on grocery store purchases on up to $12,000 spent in the first year.
Cash back rate: Earn 5% cash back on travel booked through Chase Ultimate Rewards, 5% cash back on Lyft through March 2022, 3% cash back on dining and drugstores, and unlimited 1.5% cash back on all other purchases.
Annual fee: $0
Why we chose it: In addition to a great bonus and earning structure, the Chase Freedom Unlimited offers a 0% APR introductory period for 15 months from account opening on new purchases . This way, you can earn cash back while financing large purchases just make sure youre paying off your balance before the end of the intro APR period to avoid paying interest.
The Chase Freedom Unlimited is also a great card to pair with your existing Chase credit cards to earn cash back on non-bonus spending in fact, it makes up one-third of the Chase Trifecta. If you have an Ultimate Rewards credit card, such as the Chase Sapphire Preferred Card or Chase Sapphire Reserve, you can combine rewards and take advantage of 25% to 50% Chase travel portal redemption bonuses and transfer partners. Since TPG values Ultimate Rewards points at 2 cents each, youll get a 3% return on all non-bonus spending when you pair the Freedom Unlimited with a Chase Ultimate Rewards card.
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What Credit Card Gives The Most Cash Back
While there is no single cash-back credit card that gives you the most cash back everywhere you spend your money, there are credit cards that can help you maximize cash back in various spend categories. Here are a few examples:
- U.S. supermarkets: Blue Cash Preferred® Card from American Express 6% cash back on up to $6,000 per calendar year in purchases, then 1%
- Gas: Bank of America® Customized Cash Rewards credit card 3% on the category of your choice for up to $2,500 per quarter in combined purchases including 2% categories then 1%
- Dining out and entertainment: Capital One Savor Cash Rewards Credit Card 4% on dining, entertainment and popular streaming services
- Rotating categories: Chase Freedom Flex 5% return on up to $1,500 each quarter you activate
- All categories: Citi® Double Cash Card 2% cash back on all purchases. Earn 1% as you make purchases and 1% as you pay them off.
The information for the Capital One Savor card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Scotia Momentum Visa Infinite*
The Scotia Momentum Visa Infinite is a strong cash-back card that offers competitive perks and rewards and comes with an excellent welcome offer. Cardholders can earn an impressive 4% cash back on groceries, recurring bills and subscription servicesa structure that may well suit large families or households. Transportation expensesgas and public transitearn at 2%, and everything else comes in at 1%. Note that there is a $25,000 cap on qualifying spends in each category any purchases exceeding that amount will earn the base 1%. Theres also $1,000 in mobile device insurance and $1,500 per person in trip cancellation protection.
Since this is a Visa Infinite card, there is a minimum annual income of $60,000 or a minimum household income of $100,000 requirement to be approved for the card. The annual feenow $120will be waived for new applicants for the first year.
- Annual fee: $120
- Welcome bonus: Earn 10% cash back on all purchases up to $2,000 for the first 3 months. Must apply before November 21, 2021.
- Earn rate: 4% cash back on groceries, recurring bills and subscription services 2% on public transit and gas and 1% on everything else
- Income requirement: $60,000 or $100,000
- Additional benefits: Mobile device insurance travel insurance concierge service Visa Infinite Dining and Wine Country Series
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How Cash Back Works
How cash back credit card rewards work is pretty straightforwardyou spend money on your credit card and the issuer gives you a few cents back in credit for every dollar you spend.
Cash back credit cards typically offer cash rewards at a flat-rate or using a bonus rewards structure. The Citi® Double Cash Card, for example, is a cash back card with a cash back reward return of 2 percent . That means that for every $100 you spend on your card, Citi will give you $2 back. With a flat-rate cash back credit card, every purchase leads to earning the same amount of cash back, no matter what the purchase is. The best flat-rate cards give cardholders 1.5 percent to 2 percent cash back on all of their purchases.
If you choose a credit card that has a bonus or rotating cash back structure, youll earn more rewards for certain types of purchases such as groceries, dining, transportation or travel. While some of these special cash back categories may remain the same, others might rotate on a quarterly basis to focus on a different spending category. For example, the Chase Freedom Flex offers tiered cash back rewards, with 5 percent on rotating categories each quarter , 3 percent on dining at restaurants and drugstore purchases and at least 1 percent on other purchases.
While a few cents on the dollar may not seem like a lot, over time and with regular spending, cash back rewards can really add up.
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Ink Business Unlimited Credit Card
Our pick for: Side hustles and gig work
The Ink Business Unlimited® Credit Card earns a simple, flat cash-back rate on every purchase, with no limit on how much you can earn. The sign-up bonus is outstanding for a cash-back card, particularly one with no annual fee, and there’s an introductory 0% APR period for purchases. Read our review.
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Bank Of America Customized Cash Rewards Credit Card
Our pick for: Customizable cash back 3% categories you can adjust monthly
The Bank of America® Customized Cash Rewards credit card gives you a little more control over your credit card rewards by letting you choose which category earns the highest cash-back rate, from a list that includes gas stations, restaurants, travel and others. You also get bonus rewards at grocery stores and supermarkets, plus a great new-cardholder bonus offer. Read our review.
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How Much Cashback Can I Receive
Cashback amounts vary depending on the bank, the kind of card you use, and where you live. Credit cards are more likely to offer cashback than debit cards. Reward programs like cashback are more common in the United States, and are less typical in more fiscally conservative countries like Germany. Some card issuers require that customers spend a minimum amount to receive benefits, whereas others issue cashback on every single purchase.
At N26, all Business Standard, Smart, and You account holders receive 0.1% on every card payment, while Business Metal customers get 0.5% per payment.
How To Get A Cash Back Credit Card
Many credit card issuers offer cash back credit cards, and there are options available to those with poor credit or are new credit and excellent credit .
Once you find a card you like, applying is no different from applying for a non-rewards card. You can often fill out an online application and submit it online. Once you apply, the card issuer will likely perform a hard inquiry on your credit report to check your creditworthiness, which can lead to a small drop in your credit scores. If you’re approved, the issuer will send you the card in the mail and you can start using it to earn cash back rewards.
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Places You Cant Get Cash Back
Using your debit card to request cash back is a simple process, but there are a few places where getting cash back isnt an option, such as:
- Most clothing stores
- Home goods stores
- Home furnishings stores
These places dont give you a choice to withdraw cash. If youre shopping for a new outfit, picking up a lamp, or buying a new sofa, you may have to go elsewhere to get cash back with your debit card.
Cash Back Vs Travel Cards
Cash-back cards are easy to understand and use, but they can also seem boring. Thats especially true when they’re compared with travel cards, which can be aspirational visions of earning a free flight to Bora Bora in first class or a night at a swanky hotel in New York City.
And co-branded travel cards for airlines and hotel companies might give you perks no other card will. For example, airline cards often offer free checked bags and priority boarding. Many of the best hotel credit cards give you a free night’s stay each year.
Still, while travel dreams are more exciting than another $90 in cash back on your credit card statement, cash-back credit cards might actually be the right choice for most people. A 2016 study by NerdWallet found in many cases, a consumer could get more value by using a cash-back card and using the cash rewards to pay for travel expenses.
The study found that domestic travelers who spend less than $8,600 per year on travel earn more rewards with a cash-back card than a travel rewards card, especially if they hold the card a long time.
A big exception: Americans who travel overseas an average of at least once per year are often better off with a travel rewards credit card because of higher point values and no foreign transaction fees.
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What To Watch Out For
- Many credit card issuers treat things like money order purchases or credit cardfunded wire transfers just like cash advances, so dont be fooled into thinking youre escaping the higher fees and interest rate of a cash advance if you choose one of those options. Check the terms of your credit card agreement to see how these cash-equivalent transactions are defined.
- While these alternatives may be less expensive than a cash advance, dont forget youre still using your credit card to borrow money. If you cant afford to pay off your credit card balance each month, youll still incur finance charges, albeit at the normal APR associated with purchases.
- If youve had a sudden change in your financial situation, you may be distracted. To avoid the possibility of an over-the-limit fee, make sure you have enough available credit to make one of these moves.
Discover It Cash Back
Our pick for: Bonus categories quarterly categories + cash-back match
The Discover it® Cash Back earns bonus cash back in quarterly categories that you activate. In past years, those categories have included common spending areas like grocery stores, restaurants, gas stations and Amazon.com. Category activation can be a hassle, but if your spending aligns with those categories , you can rake in serious rewards. You also get the issuer’s signature “cash-back match” bonus in your first year. Read our review.
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Do You Still Get Cash
Cash-back rewards typically apply to only net purchases, which exclude returns. Cash-back on returns is generally deducted from your rewards balance. Or if the reward has already been issued, your card issuer may reserve or cancel the rewards deposit, or post a cash advance for the rewards to your credit card balance.
Cash Back Vs Cash Withdrawal
The term cash back can refer to both getting cash from a store while youre shopping in person and the cash back you earn when using a specific app thats linked to your debit card.
If a cashier asks, Do you want cash back? while youre checking out, they mean if you want to get physical dollar bills.
On the other hand, there are apps that offer cash back which refers to the percentage of the total purchase you can earn when the debit card is linked to the app.
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Cash Advances Can Hurt Your Credit Score
When using a credit card cash advance, you are borrowing money from the bank or your card issuer .
The more ways you borrow money, the more vulnerable you could be to missing a payment and potentially hurting your credit score down the line. This may be particularly true for cash advances, which charge higher interest rate and therefore can make it more difficult to pay back what you owe on time.
Cash advances can also negatively impact your credit score by increasing how much money youre borrowing relative to your overall credit limit, also known as your . Generally speaking, you only want to borrow 30% of your overall limit to get a good credit score, which may be a harder target to hit if you suddenly withdraw a large credit card cash advance.
Depending on the specific credit card you carry, you may even be required to undergo a separate credit approval process just to be considered eligible for a cash advance. Youll want to dig into the details of your cardholder agreement or speak with a customer rep from your bank to clarify your cards policy beforehand.
Blue Cash Preferred Card From American Express: Best For Gas Supermarkets And Select Streaming Services Cash Back In The Us
Welcome offer: Earn 20% back on Amazon.com purchases on the card within the first six months of card membership, up to $200 back. Plus, earn $150 back after you spend $3,000 in purchases on the card within the first six months of card membership. Cash back received in the form of statement credits.
Cash back rate: Earn 6% cash back on purchases at U.S. supermarkets and on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit and 1% cash back everywhere else. Cash back is received in the form of Reward Dollars that can be redeemed for statement credits. Terms apply.
Annual fee: $0 introductory annual fee for one year, then $95
Why we chose it: Another rewards credit card with some intriguing bonus categories is the Blue Cash Preferred Card from American Express. This is a great all-around cash-back card because it earns solid cash back on categories that dont always get a lot of love from other cards. When Amex added streaming services and transit to this cards bonus categories, it got a major bump in value in my mind. Just remember that it charges a 2.7% foreign transaction fee , so while its a great option for use in the U.S., you shouldnt use it when youre traveling abroad.
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