Best Cash Back Credit Card

Cash back deals on credit cards are hard to find in 2010 because cash return percentages have been reduced. The deals offered in prior years are not available anymore, and the cards that featured them are not being renewed for current cardholders.

That being said, cards that pay off in cash still offer a select market of consumers the best rewards programs available. Unlike other rewards, cash can be used however you wish. To qualify for the best deals, you’ll need a credit rating that’s excellent (750-800) or very good (720-750).

Who Benefits From Cash Back Cards?

Rewards programs that pay you cash are only profitable when you pay your balances in full every month. Because the cards come with high interest rates, carrying a balance will negate any cash you earn. Cash rewards sometimes come with an annual fee, so balance the fee against the cash you’re likely to earn.

While cash back cards are not rewarding for everyone, they can pay off handsomely if you routinely use credit for everyday purchases at grocers, gas stations, and pharmacies. The more you spend, the more you’ll earn. Before selecting a cash rewards program, identify those that offer the highest percentage of cash back in categories where you spend the most money.

Some cards restrict cash back earnings to a given annual limit; others require you to charge a predetermined amount before delivering the highest returns. Cash rewards can also expire if not redeemed within a certain amount of time.

The best cash rewards card is the one that profits you the most. Here are the most generous offers on the market today. None include an annual fee:

American Express Blue Cash Card

Blue Cash pays you 1% cash back on everyday purchases and 0.5% on everything else. After purchases exceed $6,500 annually, you’ll get the maximum cash return of 5% on everyday purchases and 1.25% on everything else. The card has no annual limit on earnings.

Capital One No Hassle Card

With unlimited earnings, Capital One delivers a 1% cash return on all purchases. After you spend $6,000, you’ll get 3% cash back on gas and groceries with a 1% cash rebate on everything else.

Chase Freedom, Discover More, & Citi Cash Returns Cards

Chase, Discover, and Citi cards have no earning limit and give you 1% cash back across the board on all purchases. Each card has unique additional features. Chase and Discover offer 5% cash back on certain purchase categories that rotate throughout the year. Citi offers 1% cash back on cash advances and $5 cash back on balance transfers over $1,500.

PenFed VISA

PenFed gives cardholders an immediate and unlimited 2% cash return on groceries, 5% on gas, and 1% on everything else. The offer is open to military or government employees, housemates, and family members. Red Cross employees and volunteers are also eligible. Others can qualify by joining the National Military Family Association for a one-time $20 fee and opening an account at Pentagon Federal Credit Union with at least $5.