Credit cards are not only a great way to build credit and obtain flexibility in payments, but they can also earn you great rewards if you’re able to find the best cashback credit card.
Nowadays, with so much competition in the financial market, banking institutions are offering various perks and add-ons to customers to get them to apply for a credit card. One of the most popular types of offering is cashback, where you can earn actual cash in return for making purchases.
With so many cashback credit card options available, though, it can be difficult to wade through the noise to find the card that offers you actual rewards that are worth it in the long run.
What is cashback?
Before we dive headfirst into the list of the best cashback credit cards, it’s important to understand exactly what this type of card is. Simply put, cashback is a bonus you will earn from the financial institution that issues your credit card, based on the purchases you make on the card.
Some credit cards will issue you a flat amount of cashback based on the number of purchases you make. Others will give you a percentage of all your charges.
The cashback rewards that you earn on your credit card can sometimes be used to pay off part of your credit card balance. In some cases, you can even request the financial institution send you a check for the amount of your cashback rewards, which you can then turn into cash or deposit into a checking or savings account.
Five best cashback credit cards
Here is a list of the five best cashback credit cards, along with the basic details of each. To apply or find out more information about each of these best cashback credit cards, click the links provided.
Chase Freedom Unlimited is one of the best cashback credit cards available. To qualify for the card, you’ll most likely need a credit score in the 670-850 range. There are no annual fees associated with the card, and the regular APR is variable between 16.74% and 25.49%.
If you have good credit, you may also qualify for perks such as a 15-month intro purchase APR of 0% and a 15-month intro balance transfer APR of 0% as well.
The Chase Freedom Unlimited Card offers a flat $150 cashback bonus after you spend $500 in purchases within the first three months of opening your account. After that, you can earn unlimited 1.5% cashback on every purchase, with no restrictions.
You will need a Social Security number to apply for the Chase Freedom Unlimited card.
The Discover it Cash Back card is another great cashback credit card. You’ll need a credit score in the 670-850 range to be approved. There is no annual fee, and it has a 0% APR intro for both purchases and balance transfers for the first 14 months to those who qualify. The regular APR is variable between 13.74% and 24.74%.
The Discover it card has a tiered cashback system. You’ll earn 5% cashback at specific places that change each quarter. Discover will set the category each quarter and notify you where you’ll earn this 5% cashback. For example, it could be restaurants, gas stations or grocery stores.
You will also earn an unlimited 1% cashback on all other purchases. In addition, at the end of your first year, Discover will match all of the cashback you earned automatically.
You’ll need an SSN to apply for the Discover it Cash Back card.
Capital One Quicksilver is a great cashback credit card. It will often require a credit score of 670-850, and Capital One will also offer a 0% intro on purchases and balance transfers for the first 15 months for those who qualify. The regular APR after that is variable, from 15.74% to 25.74%.
You will earn a one-time cashback bonus of $150 after you spend at least $500 on purchases within the first three months of opening your account. After that, you’ll also earn an unlimited 1.5% cashback bonus on every purchase you make. The cashback you earn also won’t expire, and there is no limitation to how much you can earn or what categories of purchases earn you cashback rewards.
You only need to have an ITIN to apply for a Capital One Quicksilver Cash Rewards card.
*Do you have bad credit? Learn which are the best credit cards for bad credit.
To qualify, you’ll need a credit score of 670-850, and the company offers an introductory 0% APR on purchases and balance transfers for 15 months for those who qualify. Purchases after that will be subject to the regular variable APR of between 15.74% and 25.74%.
The Bank of America Cash Rewards credit card offers a $200 online cashback bonus after you make a total of $1,000 in purchases within the first 90 days that you open the account. After that, you will earn cashback in a tiered system.
You’ll get 3% cashback in a category that you choose, 2% at grocery stores and wholesale clubs, and an unlimited 1% cashback on purchases in all other categories. The cashback and rewards never expire, and if you’re a Preferred Rewards member, you’ll earn anywhere from 25% to 75% more points on each of your purchases.
Bank of America is another financial institution that will allow you to apply for a cashback credit card with either an SSN, ITIN or a foreign passport.
To apply for this card, you’ll need a credit score between 670-850 most likely. American Express offers a 0% intro APR on purchases and balance transfers for the first 12 months your account is open. Their variable APR after that is between 14.74% and 25.74%.
After you make $1,000 in purchases within the first three months of opening the account, you’ll get a $250 statement credit. You’ll earn tiered cashback based on the categories of your purchases. You’ll get 6% cashback on any streaming subscriptions within the U.S., and 3% cashback on transit purchases such as parking, tolls, trains, and buses.
You’ll also earn 6% cashback on supermarkets in the U.S. for the first $6,000 per year spent there, and 1% cashback after that. You’ll get 3% cashback at U.S. gas stations, and 1% cashback on all other purchases you make.
One thing to note about the Blue Cash Preferred Card from American Express is that it does have a $95 annual fee. As such, you’ll want to make sure the cashback you receive each year makes up for that fee you’ll have to pay.
American Express will either require an SSN, ITIN or foreign passport to apply for one of their credit cards.
The best cashback credit cards are at your fingertips
One of the best ways to get value out of a credit card is by earning rewards for the charges you make. A great way to do that today is to choose from the best cashback credit cards that are available to you.
If you are unable to qualify for a cashback credit card or if you’re looking to borrow a lump sum of money for a business investment, then we, at Camino Financial, could be a great option for you.
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