Young women walk down the street laughing and drinking coffee.

How to Choose the Best Cash Back Credit Card for You

5 min read

Last Updated: February 14, 2025

Table of contents

Key Takeaways

Confirm the percentage of cash back rewards you can earn for each card, including lower rates for all purchases and higher rates for specific spending categories that may rotate.
Look for restrictions on earning and redeeming rewards, like limits to the rewards you can earn.
Determine which cards have an annual fee and whether the fee is worth the cash rewards.

There’s no overall best cash back credit card—the best cash back card is the one that’s right for you. It’s a good idea to compare cash back credit cards, including the rewards and features that best align with how you plan to use your card.

Compare different cash back rewards

Cash back rewards credit cards generally use one of three rewards structures:

Fixed-rate rewards. Fixed-rate rewards cards offer the same cash back rewards rate on every eligible purchase.
Tiered rewards. Cards with a tiered-rewards structure offer a different cash back rewards rate depending on where you shop. Often, there’s a fixed rate for everyday purchases and a higher rate for purchases in bonus categories.
Rotating rewards. Some cash back credit cards have tiered rewards with one tier that rotates different spending categories throughout the year. For example, you can earn extra rewards up to a certain amount in every bonus category each quarter.

Compare cash back credit card features and fees

A cash back card with a high rewards rate might not always be the best credit card for your circumstances. Consider how a card’s features and fees may impact your overall earnings.

For example, credit card reward redemption rules may limit what you earn. If your credit card issuer charges an annual fee, or other types of fees, for the rewards credit card you want, you’ll need to consider whether you’ll earn enough cash back rewards to offset the fee.

You can review a card’s terms and conditions for the following:

Features

Rewards redemption rules. There may be limitations on how and when you can redeem your cash back rewards. Look for a minimum-reward redemption requirement and check to see how you can redeem cash back rewards, such as redeeming for a statement credit or gift card.
Introductory Interest Rates. Some cards offer an introductory 0% interest rate for each purchase or balance transfer. These may be beneficial if you plan on making a large purchase or want to transfer a balance from a higher-interest credit card to a lower-interest card.
Bonus rewards. Some credit cards also offer introductory bonus cash back rewards for a set period, like the first year you have the card. New cardmembers may be eligible for extra cash back rewards as a perk for opening the card account. The bonus eligibility, amount, and length of the promotion can vary by the card issuer and card. In some cases, you may have to charge a minimum amount to start earning bonus cash back rewards, and there may be a limit to the cash back rewards you can earn.

Did you know?

With Discover, you can get an unlimited dollar-for-dollar match of all the cash back you earn at the end of your first year, automatically. There is no limit to how much we’ll match.¹

Learn More

Fees

Annual fee. Some card issuers charge a yearly fee to use their cards. Discover has no annual fee on any of our cards.
Foreign transaction fee. Some card issuers charge a foreign transaction fee for purchases made outside the U.S. or online in a foreign currency. Discover has no foreign transaction fee.
Balance transfer fee. Many balance transfers (transferring a balance from one or more credit cards to another credit card) are subject to a fee, often a percentage of the amount transferred.
Cash advance fee. You can expect to pay a fee if you withdraw cash from your credit card account, sometimes a flat fee but usually a percentage of the cash advance amount.
Late payment fee. If you don’t make your minimum payment by the due date, your card issuer will likely charge a late fee.

Consider how you’ll use your cash back credit card

Choosing the right cash back credit card is about finding a card that fits you. Before you decide, think about how you plan to use your card. Will this be a general everyday card you use for the majority of purchases? Are you looking for a cashback rewards program that pays out no matter how much or how little you spend? Or maybe you’re looking for a card that offers a higher cash back rewards rate for specific everyday purchases, like groceries or gas.

Determine if you prefer tracking your spending to earn a higher rewards rate for rotating categories or earning a flat rate on every eligible purchase.

If rotating bonus categories align with your usual spending, you may earn the most cash back with a tiered- or rotating-rewards card. But a fixed-rate cash back rewards card could be best if you don’t often shop at the same stores or don’t want to keep track of different spending categories.

Compare

Also, if you don't use your credit card frequently, consider a cash back credit card with no annual fee to maximize your savings.

Check your credit score

Your credit score can impact your ability to get a credit card, even influencing the offers and rates you receive. You can use different services to view your credit report and check your credit score for free. Knowing your credit score could help you determine which cash back credit card you may qualify for. Some cashback cards require good to excellent credit. But other options exist if you’re new to credit or rebuilding your credit, such as secured credit cards. For example, you can build your credit history with the Discover it Secured Credit Card.²

Applying for a cash back credit card

Applying for a cash back credit card isn’t any different from applying for other types of credit cards. Before applying, you can see if you’re pre-approved for a credit card based on your current credit score and other financial factors. In fact, you can easily check if you’re pre-approved for a Discover Card with no harm to your credit score.³

Once you know what you may qualify for, you can apply for the cash back card that makes the most sense for you.

The bottom line

It's essential to compare different cash back credit cards to understand the details of their rewards programs, features, fees, and introductory promotions. No matter which cash back card you choose, you'll want to read the terms and conditions to make the most of your new card.

Important Information >