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THESE 3% CASHBACK CREDIT CARDS WILL MAKE YOUR WALLET 3% THICKER

CREDIT CARDS - CASHBACK CREDIT CARDS
What if you could earn money back on all your purchases? You could be leaving
hundreds of dollars on the table each year right now.
Last updated June 27, 2023 | By Miranda Marquit


We may receive compensation from the products and services mentioned in this
story, but the opinions are the author's own. Compensation may impact where
offers appear. We have not included all available products or offers. Learn more
about how we make money and our editorial policies.

When making a purchase, there’s a good chance you’re using cash. In fact,
according to a recent FinanceBuzz survey on how Americans pay for purchases,
millennials are likely to have paid for something with cash in the last month.
Additionally, millennials and Gen Xers are more likely to use a debit card than
a credit card when paying for purchases.

But what if those spending habits mean you’re leaving money on the table? You
might be surprised to discover how much you could be earning each time you swipe
— when you responsibly use the right cashback credit card.

Imagine that you could earn at least 3% cash back just by using a credit card.
Here’s how to do it and the best 3% cashback credit cards we can recommend.

In this article
 * How cashback rewards work
 * Compare credit cards that earn (at least) 3% cash back
    * Blue Cash Preferred® Card from American Express
    * Citi Custom Cash℠ Card
    * Chase Freedom Flex℠
    * Capital One SavorOne Cash Rewards Credit Card
    * Chase Freedom Unlimited®

 * Multiple cashback cards could get you 3% cash back more often
 * The bottom line on cashback credit cards


HOW CASHBACK REWARDS WORK

When you use a cashback rewards card, you get some of your purchase amount back.
If you have a card that gives you 3% cashback rewards on gas and you spend $200
on gas this month, you’ll receive $6 back. That might not seem like a lot, but
think about all the other purchases you make.

For example, the average consumer spent $17,684 on food and transportation in
2018, according to the Bureau of Labor Statistics. If you’d earned 3% cash back
on all of those purchases, that'd be $530.52 extra in your bank account. Sounds
good, right?

As long as you pay off your balance each month so you aren’t paying interest,
cashback rewards provide you with a way to get a little extra money. And many
people like the idea (and the simplicity) of getting cold, hard cash back
instead of earning miles or points with one of the best travel credit cards.

While not every credit card offers a high rate of cash back, good cashback cards
do exist. In this article, we’ll take a look at the best cashback credit cards
offering at least 3% — and how to maximize their use.


COMPARE CREDIT CARDS THAT EARN (AT LEAST) 3% CASH BACK

Card name Card name Best for Welcome bonus Rewards rate Annual fee Blue Cash
Preferred® Card from American Express

Blue Cash Preferred® Card from American Express

Groceries Earn a $250 statement credit after spending $3,000 on purchases in the
first 6 months 6% cash back at U.S. supermarkets (for first $6,000 per year,
after that 1%) and on select U.S. streaming services, 3% cash back at U.S. gas
stations and on eligible transit, and 1% cash back on other eligible purchases
$0 intro annual fee for the first year, $95 per year thereafter See rates and
fees (Terms apply) Citi Custom Cash℠ Card
Citi Custom Cash℠ Card
Flexible categories Earn $200 cash back after you spend $1,500 on purchases in
the first 6 months of account opening 5% cash back in your top eligible spending
category each billing cycle (up to the first $500 spent, then 1% cash back),
plus unlimited 1% cash back on all other purchases $0 Chase Freedom Flex℠ Chase
Freedom Flex℠ Rotating categories Earn a $200 Bonus after you spend $500 on
purchases in your first 3 months from account opening 5% cash back on rotating
quarterly categories you activate (on up to $1,500 spent) and travel purchased
through the Chase Ultimate Rewards portal; 3% cash back on drugstore purchases
and dining at restaurants (including takeout and eligible delivery service); and
1% cash back on all other purchases $0 Capital One SavorOne Cash Rewards Credit
Card Capital One SavorOne Cash Rewards Credit Card Dining and entertainment Earn
a one-time $200 cash bonus after you spend $1,000 on purchases within the first
3 months from account opening 3% cash back on dining and at grocery stores
(excluding superstores like Walmart® and Target®), popular streaming services,
and entertainment; 5% back on hotels and rental cars booked through Capital One
Travel; 8% cash back on Capital One Entertainment purchases; 10% cash back on
purchases made through Uber & Uber Eats (through 11/14/2024); and 1% cash back
on all other purchases $0 Chase Freedom Unlimited® Chase Freedom Unlimited®
Bonus offer Earn an additional 1.5% cash back on everything you buy (on up to
$20,000 spent in the first year) - worth up to $300 cash back 5% cash back on
Chase travel purchased through Ultimate Rewards®, 3% cash back on drugstore
purchases and dining at restaurants, including takeout and eligible delivery
service and unlimited 1.5% cash back on all other purchases $0


BEST FOR GROCERIES: BLUE CASH PREFERRED® CARD FROM AMERICAN EXPRESS

One of the most generous cashback cards out there, the Blue Cash Preferred® Card
from American Express offers 6% cash back at U.S. supermarkets (for first $6,000
per year, after that 1%) and on select U.S. streaming services, 3% cash back at
U.S. gas stations and on eligible transit, and 1% cash back on other eligible
purchases. 


Plus, this welcome offer: Earn a $250 statement credit after spending $3,000 on
purchases in the first 6 months. That’s a fairly generous offer that only
enhances the value of this card.

Even though this card has a $0 intro annual fee for the first year, $95 per year
thereafter, the expense can be well worth it. In fact, if you spend $6,000 on
purchases at U.S. supermarkets during the year, you’ll be eligible for $360 in
cash back in the form of statement credits — more than enough to offset the
annual fee. Additional spending in other categories can make that cashback
amount even bigger, making it one of the best credit cards for groceries.

If you don’t like the annual fee, though, you still have the option of the Blue
Cash Everyday® Card from American Express, which comes with a $0 See rates and
fees annual fee and allows you to earn 3% cash back at U.S. supermarkets, U.S.
gas stations, and U.S. online retail purchases (up to $6,000 per year on
purchases in each category, then 1%); and 1% cash back on other eligible
purchases.

Read our full American Express Blue Cash Preferred review. 


BEST FOR FLEXIBLE CATEGORIES: CITI CUSTOM CASH℠ CARD

With the Citi Custom Cash℠ Card, you can automatically earn generous cash back
in the category of your choice. It offers 5% cash back in your top eligible
spending category each billing cycle (up to the first $500 spent, then 1% cash
back), plus unlimited 1% cash back on all other purchases. 

Spending categories include restaurants, gas stations, grocery stores,
qualifying travel and streaming subscriptions, drugstores, home improvement
stores, and fitness centers. With this card, you reap the benefits of bonus cash
back in your highest spending category — it's simple and flexible.

This card has a $0 annual fee, and cardmembers can earn $200 cash back after you
spend $1,500 on purchases in the first 6 months of account opening.

Read our full Citi Custom Cash Card review. 


BEST FOR ROTATING CATEGORIES: CHASE FREEDOM FLEX℠

With the Chase Freedom Flex℠, you can earn 5% cash back on rotating quarterly
categories you activate (on up to $1,500 spent) and travel purchased through the
Chase Ultimate Rewards portal; 3% cash back on drugstore purchases and dining at
restaurants (including takeout and eligible delivery service); and 1% cash back
on all other purchases. 

Each quarter, the Chase Freedom Flex offers different spending categories.
You’ll want to check the calendar each quarter to see which purchases provide a
higher earnings rate. For example, one quarter might result in bonus cash back
at gas stations and home improvement stores, while another might earn extra cash
back at wholesale clubs and on select streaming services. Just be aware of the
quarterly maximum. 

This card also comes with a $0 annual fee, and a welcome bonus: Earn a $200
Bonus after you spend $500 on purchases in your first 3 months from account
opening.

Read our full Chase Freedom Flex review. 


BEST FOR DINING AND ENTERTAINMENT: CAPITAL ONE SAVORONE CASH REWARDS CREDIT CARD

If you do a lot of your spending on dining and entertainment, the Capital One
SavorOne Cash Rewards Credit Card might be the right choice for you. Cardholders
get 3% cash back on dining and at grocery stores (excluding superstores like
Walmart® and Target®), popular streaming services, and entertainment; 5% back on
hotels and rental cars booked through Capital One Travel; 8% cash back on
Capital One Entertainment purchases; 10% cash back on purchases made through
Uber & Uber Eats (through 11/14/2024); and 1% cash back on all other purchases.
On top of that, you can earn a one-time $200 cash bonus after you spend $1,000
on purchases within the first 3 months from account opening of account opening.

If you don’t mind paying an annual fee of $95, you can get the Capital One Savor
Cash Rewards Credit Card instead, which offers 10% cash back on purchases made
through Uber & Uber Eats (through 11/14/2024); 8% cash back on Capital One
Entertainment; 4% cash back on dining, entertainment, and select streaming
services; 3% at grocery stores (excluding superstores such as Walmart® and
Target®), and 1% cash back on all other purchases. Plus, you can earn a $300
cash bonus after spending $3,000 in the first 3 months.

Read our full Capital One SavorOne Cash Rewards Card review. 


BEST BONUS OFFER: CHASE FREEDOM UNLIMITED®

The Chase Freedom Unlimited® offers generous cash back in several popular
spending categories, but its easy-to-earn welcome bonus is what makes it really
stand out: Earn an additional 1.5% cash back on everything you buy (on up to
$20,000 spent in the first year) - worth up to $300 cash back. This could be
valuable if you want to earn big cash back on your everyday purchases.

In addition to its welcome bonus, this card also offers 5% cash back on Chase
travel purchased through Ultimate Rewards®, 3% cash back on drugstore purchases
and dining at restaurants, including takeout and eligible delivery service and
unlimited 1.5% cash back on all other purchases. 

The Freedom Unlimited comes with a $0 annual fee and has the benefit of a 0%
introductory APR (annual percentage rate) offer for 15 months (then 20.24% -
28.99% Variable) on new purchases. If you want to earn a sweet welcome offer and
cashback rewards while paying off a large purchase, this card might not be a bad
choice.

Read our full Chase Freedom Unlimited review. 


MULTIPLE CASHBACK CARDS COULD GET YOU 3% CASH BACK MORE OFTEN

If you really want to make the most of your cashback cards, it makes sense to
create a strategy where you use multiple credit cards based on when you’re most
likely to get maximum rewards.

To make this work, you need to have an idea of your spending and look ahead to
see when rotating categories are scheduled. For example, you might get the
American Express Blue Cash Preferred and plan to spend the maximum $6,000 at
U.S. supermarkets. 

However, you know you’ll probably spend more than $6,000 in groceries for the
entire year, so maybe you check to see which quarter your Chase Freedom Flex
Card is offering a 5% cashback category that includes online stores where you
could buy groceries. For that quarter, you use the Chase card, and the rest of
the time, you use the Amex Blue Cash Preferred.

Once you reach the $6,000 limit for the Amex Blue Cash Preferred and the
relevant quarter has passed with Chase, you can use another card to keep getting
2% on groceries.


HOW TO CHOOSE A CASHBACK CREDIT CARD

There’s no one right card or way to get at least 3% cash back with a credit
card. In fact, the best cashback credit card (or cards) you use depends on your
priorities and expectations.

Before choosing a new card, make sure you review your own spending habits in
addition to card details. What categories are you most likely to spend in? Where
does your money go each month? Could you make the most cash back on groceries?
Or a different spending category? When you understand how you use your money,
you’re more likely to make a decision that makes sense for you. 

Keep in mind that your credit history will play a role in the card you're able
to get, too. Many of the best cashback credit cards require a good to excellent
credit score, including several of the cards we've mentioned above. If you're
working toward improving your creditworthiness, check out the best credit cards
for fair credit. 

It’s also important to be honest with yourself regarding how likely you are to
be organized about your credit card spending. For example, while getting 5% in
rotating categories might be nice, you might not want the hassle of remembering
to log in each quarter to register for the higher earnings. You may be better
off getting a couple of different cards that offer higher year-round tiers in
your most-used categories or opting for a flat-rate cashback card instead.

On the other hand, for some consumers, creating a list of when they can get the
best cashback rewards is a fun hobby and worth a little extra time. There’s
nothing wrong with either approach. Just know who you are and what works best
for you.


THE BOTTOM LINE

If you get involved in cashback rewards, it’s vital you only spend what you plan
to. Don’t make extra purchases just to get the cash back. If you end up carrying
a balance, there’s a good chance the interest charges you pay will end up
offsetting any rewards you earn. Create a spending plan and then make sure you
only use your credit cards to buy what you planned — and pay off the balance
each month.

Once you get into the habit of maximizing your cashback rewards, you’ll be
surprised at the benefits.

#1 CASH BACK AT SUPERMARKETS


BLUE CASH PREFERRED® CARD FROM AMERICAN EXPRESS


BLUE CASH PREFERRED® CARD FROM AMERICAN EXPRESS


Learn How to Apply
See rates and fees

CURRENT OFFER

Earn a $250 statement credit after spending $3,000 on purchases in the first 6
months

ANNUAL FEE

$0 intro annual fee for the first year, $95 per year thereafter

REWARDS RATE

6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and
on select U.S. streaming services, 3% cash back at U.S. gas stations and on
eligible transit, and 1% cash back on other eligible purchases

Benefits and Drawbacks

BENEFITS

 * Earn a $250 statement credit after spending $3,000 on purchases in the first
   6 months
 * 6% cash back on U.S. supermarkets (for first $6,000 per year, after that 1%)
   and on select U.S. streaming services
 * 3% cash back at U.S. gas stations and eligible transit
 * Introductory APR for purchases and balance transfers
 * Annual fee of $0 intro annual fee for the first year, $95 per year
   thereafter. Terms apply.

DRAWBACKS

 * Has foreign transaction fee

Card Details
 * Earn a $250 statement credit after spending $3,000 on purchases in the first
   6 months
 * 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%)
   and on select U.S. streaming services, 3% cash back at U.S. gas stations and
   on eligible transit, and 1% cash back on other eligible purchases
 * Intro purchase 0% APR offer: 0% for 12 months then 18.99% - 29.99% Variable
 * Intro balance transfer 0% APR offer: 0% for 12 months then 18.99% - 29.99%
   Variable
 * Terms apply

Author Details


Miranda Marquit Miranda Marquit has been covering money for more than a decade
and is a nationally-recognized financial expert and journalist, appearing on
CNBC, NPR, Forbes, Yahoo! Finance, FOX Business, and numerous other outlets.
More posts from Miranda Marquit >



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To see the rates and fees for the American Express cards featured, please visit
the following links: Blue Cash Preferred® Card from American Express: See Rates
and Fees; Blue Cash Everyday® Card from American Express: See Rates and Fees;

Details about Capital One Savor Cash Rewards Credit Card, Chase Freedom Flex℠
have been collected by FinanceBuzz editors. This information, including rates
and fees, is accurate as of the date of the review and was not reviewed or
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Opinions expressed here are the author's alone, not those of any bank, credit
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