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.
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.
Nerdwallet’s Best Cash Back Credit Cards Of October 2022
- Chase Freedom Unlimited®: Best for Bonus rewards: 5%/3% categories + high ongoing rate
- Blue Cash Preferred® Card from American Express: Best for Bonus rewards: Groceries, gas, commuting, streaming
- Citi Custom Cash Card: Best for Bonus rewards: 5% categories tailored to your spending
- Discover it® Cash Back: Best for Bonus rewards: Quarterly categories + cash-back match
- Chase Freedom Flex: Best for Bonus rewards: Quarterly categories + cash bonus
- Bank of America® Unlimited Cash Rewards credit card: Best for Flat-rate cash back: Bonus offer + incentives
- SoFi Credit Card: Best for Flat-rate cash back: Investors / savers / borrowers
Is A No Annual Fee Credit Card A Free Credit Card
While cards with no annual fee can lower the cost of using your card, these credit cards will charge interest and could have other types of fees. When you pay your balance on time and in full at each billing statement, you may be able to avoid paying interest on purchases and reduce the cost of using credit.
So while theres no extra charge each year with a no annual fee credit card, any interest charges on your account are a cost of using credit.
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Compare Credit Card Cash Back Bonus Offers
Many card issuers offer a cash back credit card new cardmember bonus. For cards that offer cash back rewards, these bonuses may take the form of a statement credit or a prepaid debit card. For points based rewards cards, you’ll generally receive points instead. Note that bonus offers typically require you to spend a certain amount within a few months of opening the card.
Can I Upgrade My Credit Card
If you’re looking to change things up with your credit cards, you might be wondering how to upgrade your credit card. In simple terms, this could mean either increasing your credit limit or upgrading your current card when your issuer launches a newer version. There are both pros and cons if you decide to upgrade your credit card, so it’s important to factor in all the information when deciding whether it’s the right next step for you.
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How To Get Cash Back From A Card With A Flat
To get cash back from a credit card, all you have to do is spend money on an eligible purchase. Whenever you make an eligible purchase with your cash back card, youll automatically earn a percentage back based on the rules of your card.
Cash back credit cards typically offer cash rewards at a flat-rate or a bonus rewards structure. 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.
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.
Flat-rate credit cards offer consumers a hassle-free approach to cash back because the process to earn cash back is quite simple. Every time you swipe your card, no matter the purchase, youll receive the same rewards rate.
Flat-rate credit cards appeal to individuals who prefer flexible spending, especially if you dont want to think about juggling different types of credit cards for different categories of spending.
Consider the many recurring expenses you have every month, such as a utility and wireless internet bill. These categories typically arent covered by bonus rewards categories so a flat-rate credit card could come in handy if youre looking to get cash back on expenses you know you are going to have every month.
Wells Fargo Active Cash Card: Best Rewards Rate For A Cash Rewards Card
The Wells Fargo Active Cash makes credit card rewards straightforward for those who want to avoid an annual fee altogether. Its 2% earning rate on purchases is solid since theres no limit to how much cash rewards you can accrue.
Plus, by simply paying your monthly bill with your Active Cash card, youll receive up to $600 of complimentary cell phone protection in case of damage or theft .
The information for the Wells Fargo Active Cash 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.
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How To Get Cash Back With A Welcome Bonus
Most cash back credit cards also offer great cash back bonuses to new cardholders something definitely worth paying attention to when youre choosing your first card. You cant beat money as a welcome gift, and oftentimes you can earn a decent sign-up bonus without big spending.
For example, the Capital One Quicksilver Cash Rewards Credit Card is currently giving a $200 cash back statement credit when you spend $500 in the first three months of card membership.
On the other hand, the Blue Cash Preferred® Card from American Express is offering a $350 statement credit after you spend $3,000 in the first six months of card membership.
In order to receive the welcome bonus, youll have to meet the spending requirement. So as you are swiping your card every month, consider how much you need to spend each month in order to hit that threshold.
How To Get Cash From Your Credit Card
Getting cash from your credit card is simple and here are the steps to take:
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Can You Get Cash Back At Stores With A Credit Card
No, you cant use your credit card for cash back at stores this is a transaction generally reserved for debit cards and, in fact, is only possible at some stores even then.
In general, youll want to use a debit card for cash back, whether via a transaction at an eligible store or through an ATM withdrawal. There is, however, one major . We cover this more below.
Best Cash Back Credit Cards Of October 2022
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ALSO CONSIDER:Best credit cards of 2022 || Best rewards credit cards || Best travel credit cards || Best 0% credit cards
Cash back is the most flexible of all credit card rewards. Instead of points that you have to figure out how to redeem and that you might not be able to redeem for something you want you get real dollars and cents you can use for, well, anything. Depending on the card you use and where you use it, you’ll earn cash rewards of 1% to 6% of the amount of each transaction. Some cards pay a single, flat rate on every purchase, while others pay higher rates in specific categories and a lower rate on everything else.
Some of our selections for the best cash-back credit cards can be applied for through NerdWallet, and some cannot. Below, you’ll find application links for the credit cards from our partners that are available through NerdWallet, followed by the full list of our picks.
ALSO CONSIDER:Best credit cards of 2022 || Best rewards credit cards || Best travel credit cards || Best 0% credit cards
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Are There Limits To Cash
Most cash-back credit cards do not limit the overall amount of rewards you can earn. However, some may limit the amount of cash back you can earn on higher tier rewards. For example, a credit card may cap the 3% cash back earned on grocery purchases to $3,000 per year. Once you reach the limit, your purchases will earn a base amount of rewards, typically 1%.
Best For Gas: Costco Anywhere Visa Card By Citi
Heres why: The Costco Anywhere Visa® Card by Citi actually gives you more cash back to fill up your tank at other gas stations than it does to shop inside a Costco store.
Youll earn a whopping 4% cash back on gas and electric vehicle charging purchases on up to the first $7,000 you spend each year . Youll get 3% back on dining and travel , 2% cash back on all other Costco purchases, and 1% on all other purchases.
Theres also a $0 annual fee. But you must be a Costco member to apply, and the cost of the membership could eat up any money you save on that fee.
Thats why we think this card is best for people who are already Costco members: Theres no additional cost for them.
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What Is A Credit Card Cash Advance
A cash advance is a transaction through which you draw upon your credit cards line of credit to withdrawal cash, whether through an ATM or with a teller at a financial institution. Though it can be easy to confuse the two, the main difference between cash back and a cash advance is that cash back rewards are something that can be earned with certain credit cards. A cash advance is a feature offered by most cards which allows you to withdrawal cash. Usually, the amount of cash available for cash advances will be less than your full credit limit available for purchases. In other words, if you have a $10,000 credit limit, youre unlikely to be allowed to withdrawal a full $10,000 as a cash advance.
According to most industry analysts who watch these kinds of statistics, cash advances have declined in popularity over the past few years. So many merchants accept credit cards, its often easier to transact with plastic than with greenbacks, anyway.
Even the best credit cards charge certain fees, so should you require cash in an emergency, heres what you might end up paying:
You can also get cash from your credit card by using convenience checks. Most of us use these to take advantage of balance transfer offers when we want to pay off a debt thats not linked to a major online bill payment service. Convenience checks often carry their own fees of up to 5% of face value.
Cash Back With A Credit Card At A Register
Theres one place where your cash back options are more limited, and thats at the register at retailers and grocery stores. So can you get cash back with a credit card at a register? For the most part, no. Most credit cards do not offer the ability to get cash back at a register, though there are some exceptions. Otherwise, youll need a debit card.When using a debit card to make a purchase at a retail store, youre asked to select whether you want cash back, and in which dollar amount. In doing so, you essentially use your debit card to make a withdrawal as you would at an ATM at the same time you complete your purchase.
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Cash Back From A Credit Card
Getting cash back from a credit card allows you to earn cash by giving you rewards, typically in the form of cash or points. As you spend money, your credit card provider will offer you a percentage back based on the amount you spend.
For example, if you have a 1% cash back rewards card and you spend $1,000, you would be entitled to receive $10 from your credit card company in return for the amount youve spent.
Note that there are two types of rewards credit cards those that directly offer cash back and those that offer rewards points. Rewards points programs offer cash back redemption options as well, but they also offer redemption options like travel, gift cards, etc.
Capital One Savorone Cash Rewards Credit Card
Our pick for: Bonus rewards high rates on dining, at grocery stores and more
Love the night life but dead-set against paying an annual fee? Consider the Capital One SavorOne Cash Rewards Credit Card. It pays a lower cash-back rate on dining and entertainment than the regular Savor card, but the rewards are nevertheless quite good. The sign-up bonus is smaller than on the annual-fee version, too, but it’s still solid. Read our review.
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What A Cash Advance Is
A cash advance is a cash withdrawal from an ATM using a credit card. The cardholder is essentially purchasing cash from the credit card company as opposed to purchasing an item from a store. Money withdrawn from an ATM gets added to the account balance and will be reflected in monthly statements. One-time fees and high interest rates often accompany cash advances. The average APR for a cash advance ranges from 20% to 25%, which is much higher than APRs for regular purchase transactions. For these reasons, cash advances should be used only as a last resort or in an emergency situation.
Blue Cash Everyday Card From American Express
Our pick for: Bonus rewards popular 3% categories + no annual fee
The Blue Cash Everyday® Card from American Express pays elevated rewards at U.S. supermarkets, at U.S. gas stations and on U.S. online retail purchases. The rewards might not be as rich as on the Blue Cash Preferred® Card from American Express, but this card doesn’t charge an annual fee either. New cardholders get a decent welcome offer and an introductory 0% APR period. Read our review.
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Get 5% Cash Back Rewards At Select Places Throughout The Year
5% at Grocery Stores and Fitness Club & Gym Memberships
on up to $1,500 in purchases when you activate. Excludes Walmart and Target purchases.
5% at Gas Stations and Target
on up to $1,500 in purchases when you activate.
5% at Restaurants and PayPal
on up to $1,500 in purchases when you activate.
5% at Amazon.com and Digital Wallets
on up to $1,500 in purchases when you activate.
99% nationwide acceptance Discover is accepted by 99% of the places across the country that take credit cards.
Your Discover It Cash Back Rewards Never Expire
Redeem your cash back when it suits you best, any time for any amount, even $.01.
Here are some of the ways you can redeem your cash back
Deposit cash back directly into your bank account
Apply it as a statement credit on your Discover card balance
Pay with Cashback Bonus: Use your rewards at checkout at Amazon.com and Paypal
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Bank Of America Unlimited Cash Rewards Credit Card
Our pick for: Flat-rate cash back bonus offer + incentives
The Bank of America® Unlimited Cash Rewards credit card is one of many 1.5% flat-rate cash-back cards on the market. It comes with a decent sign-up bonus, a generous intro APR period, and the potential to supercharge your earnings through Bank of America®’s Preferred Rewards program. Read our review.
What Are Cash Back Rewards And How Do They Work
Cash back rewards are a type of reward points based on a percentage of purchases with your credit card in select categories, such as dining, department stores, grocery and travel. Typically, credit cards with this feature award cash back at a value of 1 cent. Cash back rewards can be redeemed for credit card statement credit, for purchases through participating online retailers at checkout, for gift cards or discounts on services or travel.
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Research Methodology: How We Choose The Best Cash
Choosing the best cash-back credit card for you can take a lot of research. At TPG, we try to make the research process as simple as possible. We spend hours combing through the credit cards available from our partners and outside our network, comparing them to see which cards offer the best return for readers. Here are a few of the factors we look at when choosing the credit cards on our best cash-back cards guide: