Personal Finance

I'm looking for a credit card that has better cash back than my current ones. I don't really care for the travel points or anything like that. What's the best option?

David Beren

Published: January 4, 2025 12:15 pm

When it comes to cash-back credit cards, there is something to be said for earning what is essentially free money for shopping. While everyone loves free money, you have to be savvy with your cash-back strategy to avoid leaving free money on the table. 

The reality with cash-back credit credits is that you should have more than one to capture every possible cash-back opportunity. The only question is which cash-back credit cards you should have in your wallet, which is a question at least one Redditor posting in r/CreditCards attempts to answer. 

Choosing the Right Card

One of the biggest emphases in this Reddit thread is choosing the right card, a common mistake people make. There are too many instances of people choosing the wrong card for what they believe are the right reasons, like a big sign-up bonus or a low balance transfer rate, without considering exactly how they will use a card. 

Don’t Ignore Your Spending Habits

The biggest mistake most people make when signing up for a cash-back credit card is ignoring their spending habits. What are your most charged purchases? Is it gas? Groceries? Shopping at Amazon? Understanding your spending habits will be critical to selecting a cash-back card or multiple cards that work best for you. 

Don’t Just Focus On Bonuses

A common mention in the Reddit thread is that too many people are focused on sign-up bonuses. You know the deal: sign up for a credit card, spend $3,000 in the first 90 days, and earn a $200 bonus. While this sounds enticing and like easy free money, it can put you in a position of choosing the wrong cash-back card for the long term. 

Make Sure and Look At the Perks

While choosing a cash-back card based on your spending habits is the number one reason to choose a card, the second reason may be any additional perks. This could mean an extra year of warranty on purchases, purchase protection, or even perks like travel insurance in the event of a storm or illness. Combining these bonuses with your spending habits on the right cash-back credit card lets you find the best card. 

Don’t Ignore Redemption Options

In many ways, ignoring redemption options can be a big mistake when choosing the right cash-back credit card. For example, my wife and I use the Fidelity cash-back card, which earns 2% on every purchase. The problem is that Fidelity doesn’t let you redeem your points dollar for dollar, as you lose a certain percentage if you do so. 

Instead, we had to transfer the money into an account at Fidelity to get a dollar-for-dollar match. This is a common mistake to avoid: you can get dollar-for-dollar by applying cash-back rewards toward your balance but not transferring into a bank account. 

The Best Cash Back Credit Cards

Chase Freedom Unlimited

Offering 1.5% cash back on all purchases, 3% on restaurants, takeout, and drugstores, and 5% on any purchase through Chase Travel, the Chase Freedom Unlimited is one of the most popular cash-back credit cards available today without an annual fee. 

It’s safe to say that this card may be one of the best options for everyday spenders who don’t have one specific category they need more than others. While the bonus category for dining out is outstanding, knowing that you still get 1.5% on everything else should give you a sense of comfort. 

There is a $250 bonus if you spend $500 in the first 3 months and you can receive a statement credit or direct cash deposit with your rewards points. You can also use your cash rewards as a bonus for eligible Amazon.com orders. 

Wells Fargo Active Cash 

One of the most popular cash-back credit cards today, the Wells Fargo Active Cash, offers 2% unlimited cash rewards on all bonuses. You don’t have to worry about quarterly categories or bonuses. It’s 2% cash back all the time. 

What makes this card so attractive is not just the 2%, but also the $600 of cell phone protection against damage or theft. In addition, you get an Auto Rental Collision Damage Waiver and deals through My Wells Fargo Deals at thousands of retailers. The combination of these bonuses plus the potential for unlimited 2% rewards makes the Active Cash card one of the “it” cards in 2025. 

Discover it

Arguably the most mentioned card in the Reddit thread, the Discover it card is wildly popular for its 5% rotating categories. While its 1% cash back bonus is unlimited on all purchases, and $1 cashback equals $1 redemption, it’s not as strong as a 1.5% or 2% cash back card offer. 

However, where things get interesting with Discover it, and what makes it such a popular choice are the 5% cash back quarterly rotating categories. This means quarterly purchases at grocery stores, gas stations, and restaurants will enable you to earn almost three times more than a credit card like the Chase Freedom Unlimited. 

Best of all, if you’re signing up with the Discover it card, the company will automatically match all the cash back you earn in the first 12 months. In other words, if you earn $100 in bonuses in the first year, Discover will match it with another $100. 

Blue Cash Preferred from American Express

For someone who smartly analyzes their spending habits and then determines the best cash-back card, the Blue Cash Preferred card from American Express is another great choice. This card is best for people who make frequent grocery shopping trips or frequently need to fill up their vehicles with gas. 

Regarding grocery shopping as a big spending habit, it’s hard to beat the 6% cash back reward the Blue Cash Preferred card offers. With the ability to earn up to $6,000 cash back on this card just on groceries alone, it’s something to consider. Using my grocery store spending as an example, this card could earn me as much as $900 in cash back in one year alone, just on groceries. 

The same goes for gas stations, as 3% cash back is one of the best bonuses on a general cashback credit card. While all other purchases, being 1%, won’t match other card benefits, the Reddit thread makes it hard to ignore the grocery shopping advantages. Oh, but wait, you also get 6% cash back on eligible US streaming subscriptions like Netflix, Spotify, and more. 

Citi Custom Cash

Another prominent mention in the Reddit thread is the Citi Custom Cash Card. This card peaks with the ability to earn 5% cash back on your top eligible spend category, up to $500 for each billing cycle. For many posters in the Reddit thread, they set up this category to be groceries, Amazon, or some other option that enables them to earn hundreds per month. 

While the 1% cash back on other categories isn’t going to stand out, 4% cash back on any hotel, car rental, or attraction booked through the Citi Travel Portal just might be enough to entice some people. Unfortunately, the card doesn’t offer many perks around purchase protections or extended warranties, but it’s hard to pass up 5% cash back monthly on a category of your choosing.