Best Cash Back Credit Cards

I am a credit card person. Wherever possible, I use credit cards to pay for my purchases. To me, credit cards are my friend, not foe. The reasons for me to favor credit cards over debit cards or cash are twofold:

1. I know exactly where my money went,
2. I can get cash back for the money I have to spend.

Among more than two dozens of cards I own, four are in my wallet. They are the cards that I use the most to cover my everyday purchases, each for a different purpose:

• Chase Freedom Card: At gas stations and grocery stores (3% cash back).
• Costco TrueEarnings Card from American Express: At Costco (1% cash back) and restaurants (3% cash back) where AMEX is accepted. This card also has 3% rebates on gas, but not every gas station accepts AMEX.
• Citi UPromise Card: Shop online through UPromise (rebate rates vary, but could be as high as 10% depending on merchants). The UPromise card allows me to earn 2% cash back at Exxon and Mobil stations.
• Fidelity 529 College Rewards Card: Everywhere else (2% cash back). The new version of this card (from AMEX) only offers 1.5% cash back. Cash rebates will be invested in a Fidelity 529 plan.

I also use Chase Amazon Card for shopping at Amazon.com only to earn 3% cash back.

My experience so far tells me that when it comes credit cards with generous cash rebates, Chase Freedom Card is one of the bests. Though I won’t get a flat 3% rebates on every penny charged on the card, its category-based rewards program does allow me to earn maximum rebates. A few cards from AMEX or Discover have better rewards, the problem for these cards is they are not accepted everywhere.

In addition to the cards mentioned above and those covered before in my best gas rewards card post, there are several other credit cards that offer good cash back rewards. Since 1% rebates are like a standard for cash back credit cards, I only list those that allows you to earn more than 1% back for your money.

Discover More Card

• Program highlight: Discover More Card gives 5% cash back bonus for purchases in selected categories, including travel, department stores, home improvement stores, gas stations, and restaurants. Purchases in other categories earns 1% cash back. There’s no limit on rewards can be earned annually.
• Introductory rate: 0% APR balance transfer for 12 months.
• Balance transfer rate and fee: 3% balance transfer fees, but not less than $10 and not more than $75.

Blue Cash Card from American Express

• Program highlight: Yes, Blue Cash will give you 5% cash back for purchases made at supermarkets, gas stations and drugstores, but not until you charge at least $6,500 on your card. Before you reach the limit, you will live with 1% rewards. Rewards are awarded annually with no limits.
• Introductory rate: 0% APR for 6 months on purchases.
• Balance transfer rate and fee: 3% balance transfer fees, with a minimum of $5 and a maximum of $99.
• Additional promotion: 4.99% APR for balance transfer.

Citi Cash Returns Card

• Program highlight: Citi Cash Returns Card is not as good as before, when 5% cash back on everything, though only for the first 3 months. Currently, it allows you to earn 1% rebates on every purchase, plus a 20% bonus on the rebates you already earned, making the cash back essentially 1.2%. Shopping through Citi Bonus Cash Center still earns 5%. A check will be issued whenever the rebates reach $50 and there’s no limit on cash back you can earn.
• Introductory rate: 0% APR balance transfer for 12 months.
• Balance transfer rate and fee: 3% balance transfer fees, with $5 minimum.

Citi Professional Cash Card

• Program highlight: If you are a small business owner, then Citi Professional Card makes a good choice. With this card, you can earn a full 3% cash back at gas stations, restaurants, office supply merchants, and auto rentals and 1% on other purchases. You can also save 10 to 60% on prescription drug through the card’s Prescription Discount program. This card, however, has a $500 annual limit on the amount of cash backs you can earn.
• Introductory rate: 0% APR balance transfer for 12 months.
• Balance transfer rate and fee: 3% balance transfer fees, with $5 minimum.

Any other good cash back credit cards out there?

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