How Cashback Cards Work
Cashback credit cards return a percentage of your spending as cash rewards. Flat-rate cards pay the same percentage on everything (1.5-2%), while category cards pay higher rates (3-6%) in specific categories like groceries, gas, or dining. The best strategy often combines 2-3 cards to maximize rewards across all spending.
Best Flat-Rate Cashback Card
The Citi Double Cash Card leads with a combined 2% cashback (1% when you buy, 1% when you pay) and no annual fee. For simplicity, it's hard to beat. Wells Fargo Active Cash also offers 2% on everything with a $200 welcome bonus. These cards work best for people who don't want to track bonus categories.
Best for Groceries
The Blue Cash Preferred from American Express earns 6% on U.S. supermarkets (up to $6,000/year), 6% on select streaming, and 3% on transit. The $95 annual fee pays for itself if you spend $1,600+ annually on groceries. For no annual fee, the Blue Cash Everyday earns 3% at supermarkets.
Best for Dining and Entertainment
Capital One SavorOne earns 3% on dining, entertainment, popular streaming, and grocery stores with no annual fee and no foreign transaction fees. For serious foodies, the Chase Sapphire Preferred earns 3x points on dining worth 3.75% when redeemed through Chase Travel.
Best for Gas and Commuting
The Citi Custom Cash earns 5% on your highest spending category each billing cycle (up to $500), automatically adjusting to where you spend most. If gas is your biggest expense, this card effectively earns 5% on gas with no tracking required. PenFed Platinum Rewards offers 5x points on gas permanently.
Rotating Category Cards
Discover it and Chase Freedom Flex offer 5% cashback on rotating categories each quarter (you must activate). Categories often include Amazon, groceries, gas, restaurants, and PayPal. Discover matches your first year's cashback, effectively giving 10% on categories.
How to Maximize Your Cashback
Build a cashback system: use a 6% grocery card for supermarkets, a 5% rotating card for quarterly categories, a 3% dining card for restaurants, and a 2% flat-rate card for everything else. Pay all cards in full monthly. This system can earn $1,000-2,000+ annually for an average household. Compare all options on MaboRates.
Ready to Compare Credit Cards Rates?
Get personalized quotes from top providers. Compare rates side by side and save money today.
Compare Credit Cards Now →