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 cards.
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 best cashback credit cards 2020 list, 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 2020
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 2020, 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 14.99% and 23.74%.
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 $200 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 or ITIN 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 11.99% and 22.99%.
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.
In addition, Discover will automatically match all the cash back you’ve earned at the end of your first year.
You’ll need an SSN to apply for the Discover it Cash Back card.
Spark Classic from Capital One is a great cashback credit card. Your credit score can be “fair”, that is: you have limited credit history or you had your own credit card or other credit for less than three years (including students, people new to the US, or authorized users on someone else’s credit card).
There’s no annual fee, the APR is 26.99% variable and you can earn unlimited 1% cash back on every purchase for your business, with no minimum to redeem.
This is a great option for credit building if you use it responsibly.
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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 12 months for those who qualify. Purchases after that will be subject to the regular variable APR of between 13.99% and 23.99%.
The Bank of America Cash Rewards credit card offers 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%.
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.
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 13.99% and 23.99%.
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 US, and 3% cashback on transit purchases such as parking, tolls, trains, and buses.
You’ll also earn 6% cashback on supermarkets in the US for the first $6,000 per year spent there, and 1% cashback after that. You’ll get 3% cashback at US 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 2020 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.
Keep reading: Use a Business Credit Card to Capitalize Your Business
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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