Cash back credit cards are a type of reward credit card that benefits cardholders by offering cash back on purchases. That means money in your pocket for things you already buy.

Below you'll find a list of our favorite cash back credit cards for 2021...

Blue Cash Preferred® Card from American Express

With one of the highest cash back rates for US supermarket purchases (6%), the Blue Cash Preferred® also has a generous bonus for gas purchases. This is a great tiered cashback credit card for families, but make sure the rewards outweigh the $95 dollar annual fee.

A family that spends a good portion of its income in US supermarkets and can afford the $95 annual fee. 

Up to $400 back


13.99% to 23.99% (Variable)

0% APR for 12 months

  • Earn up $400 back: earn up to $200 after spending $3,000 in purchases on your new card within the first 6 months, please 20% back on purchases within the first 6 months up to $600
  • 6% cash back at US supermarkets (up to $6,000 per year, then 1%)
  • 6% cash back on select US streaming subscriptions
  • 3% cash back at US gas stations and on transit (e.g. taxis/rideshare, parking, tolls, trains, buses)
  • 1% cash back on other purchases
  • 0% APR for 12 months from the date of account opening, followed by a variable rate
  • $0 annual fee for the first year, then $95 annual fee

Citi® Double Cash Card

The Citi® Double Cash Card is a flat rate card that offers two rounds of cash back rewards with every purchase. Get 1% cash back when you make a purchase and 1% cash back when you pay. 

The everyday spender who puts all purchases on one card and pays it off on time each month to reap the second round of cash back benefits. 



13.99% - 23.99% (Variable)

0% for 18 months on balance transfers only

  • Earn 2% on every purchase with unlimited 1% cash back, plus an additional 1% once you pay for those purchases
  • To earn cash back, pay (at least) the minimum due on time
  • 0% intro APR on balance transfers for 18 months. (Note: Balance transfers do not earn cash back and must be made within 4 months of opening your account)
  • No annual fee

Credit One Bank® Platinum Rewards Visa

This tiered credit card offers 5% cash back for the first $5,000 spent on everyday purchases, making it an ideal card for everyday spenders looking to continue building their credit score. 

Everyday spenders who can afford an annual fee, won’t carry a balance from month to month, and want cash back rewards while building their credit score. 



23.99% variable


  • Get 5% cash back rewards on the first $5,000 of eligible gas, grocery, internet, cable, satellite TV, and mobile phone service purchases each year
  • 1% cash back rewards on all other eligible purchases
  • Zero fraud liability protects you from unauthorized charges

Discover It® Cash Back Credit Card

The Discover It® is our top changing tier cashback credit card for those with excellent credit. The introductory offer is a major reason: Discover automatically matches all the cashback you've earned at the end of your first year. Best of all, there’s no limit to how much is matched.  

Everyday spenders looking to maximize their cash back with no annual fee. 

Cashback MatchⓇ


11.99% - 22.99% variable

0% for 14 Months

  • Cashback Match® introductory offer
  • Earn 5% cash back on everyday purchases each quarter. This includes grocery stores, restaurants, gas stations,, and when you use PayPal.
  • Automatically earn unlimited 1% cash back on all other purchases
  • Use your rewards at checkout
  • No annual fee
  • Redeem rewards for cash at any time

Costco Anywhere Visa® Card by Citi

Want rewards for shopping at Costco and buying gas? The Costco Anywhere Visa® by Citi is the perfect choice. It’s a tiered cash back credit card with rewards in multiple categories. 

The frequent Costco shopper who regularly fills their gas tank. 


$0 (Must have Costco Membership)

15.24% (Variable)


  • 4% cash back on eligible gas for the first $7,000 per year (1% thereafter)
  • 3% cash back on restaurants and eligible travel purchases
  • 2% cash back on all other purchases from Costco and
  • 1% cash back on all other purchases
  • No annual fee with your paid Costco membership
  • No foreign transaction fees

Best Starter and Student Cash Back Credit Cards

If you’re a student – or are still building your credit history – take advantage of some great cash back credit cards with the options below.

Discover it® Secured

This secured credit card has no annual fee, allows you to build credit with responsible use, and provides a tiered cash back benefit. 

The dedicated credit builder who makes everyday purchases and pays off the balance in full each month. 

Cashback Match®


22.99% Variable

10.99% for 6 months

  • No annual fee
  • Reported to the three major credit bureaus
  • Automatic reviews starting at 8 months to see whether a transition to an unsecured line of credit is possible
  • Earn 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter)
  • Earn unlimited 1% cash back on all other purchases
  • Introductory offer of a Cashback Match®. This means Discover will automatically match all the cash back you've earned at the end of your first year. There's no limit to how much is matched.
  • FICO credit score for free

Discover it® Student Cash Back

With some of the best cash back incentives available to students, the Discover it® Student CashBack offers quarterly rotating 5% cash back categories. Users can also receive Discover’s Cashback Match introductory offer, a $20 statement credit for good grades, and a 0% intro APR. Cash back rewards can’t be matched on other student credit cards, making this our top pick.  

Responsible students looking to build their credit throughout college; those who take advantage of cash back rewards on daily purchases. 

Cashback Match


12.99% - 21.99% (variable)

0% for 6 months

  • Discover will automatically match all the cash back you've earned at the end of your first year. There's no limit to how much is matched.
  • Earn 5% cash back on everyday purchases at different places each quarter (you must activate these rewards each quarter)
  • Earn unlimited 1% cash back on all other purchases
  • Get a $20 statement credit each school year that your GPA is 3.0 or higher (for up to 5 years)
  • No annual fee 
  • No late fee on first late payment
  • No APR change for paying late
  • 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 12.99% - 21.99% applies

Deserve® Edu Mastercard for Students

If you’re a student who cannot live without Amazon Prime, this credit card has the perfect perk: Receive one year of Amazon Prime Student after your first card purchase. You can also earn a 1% unlimited flat cash back rate on all purchases, making this one of the best student credit cards out there. 

Students (including international students) who regularly use Amazon Prime and could benefit from the free membership while building their credit. 

Amazon Prime Subscription


18.74% Variable


  • Receive one year of Amazon Prime Student after your first purchase with your new Deserve® EDU Mastercard 
  • Earn 1% Cash Back on all purchases with your Deserve® EDU Mastercard
  • Cell phone protection up to $600 per claim and $1,000 per 12-month period
  • No annual fees
  • No international transaction fees on purchases abroad
  • No Social Security Number required to apply

Best Business Cash Back Credit Cards

Businesses can take advantage of cash back rewards, too. This is especially helpful for companies that regularly put travel expenses or office supplies on credit cards.

Costco Anywhere Visa® Business Card by Citi

The Costco Anywhere Visa® Business card offers major rewards for business owners who have a Costco membership. This includes 2% cash back on all purchases made at Costco or If you stock your office with Costco toilet paper or snacks, this may be the perfect business credit card for you. 

Business owners who frequently shop at Costco. 


$0 (Costco Membership required)

15.24% (Variable)


  • 4% cash back on eligible gas for the first $7,000 per year (1% thereafter)
  • 3% cash back on restaurants and eligible travel purchases
  • 2% cash back on all other purchases from Costco and
  • 1% cash back on all other purchases
  • No annual fee with your paid Costco membership
  • No foreign transaction fees

American Express Blue Business Cash™ Card

If you own a startup or an expanding business, the American Express Blue Business Cash® card could be perfect due to its flexible credit limit and flat rate cash back rewards. 

The business owner who a flexible credit limit due to expansion. 

Up to $250 cash back in statement credit with $3,000 of puchases in first 3 months


13.24% - 19.24% variable

0% for balance transfers

  • Earn up to $25 cash back in statement credit with $3,000 of purchases in the first 3 months
  • Earn 2% cash back on all eligible purchases (up to $50,000 per calendar year, then 1%). Cash back earned is automatically credited to your statement.
  • Expand your credit limit with Expanded Buying Power®
  • Car rental loss and damage insurance
  • No annual fee
  • Purchase protection and extended warranty

How Do Cash Back Cards Work?

Cash back credit cards pay you a percentage of what you spend. Typically, this is 1-2% on all purchases (with some cards offering a higher rate in specific categories). 

For example, if you used a 2% cash back credit card to buy $100 worth of groceries, you’d receive $2.00 cash back.

What Kinds of Cash Back Credit Cards Exist?

Not all cash back credit cards are created equal. They have different kinds of cash back rewards systems (although all of them reward a percentage of your purchases).

Flat Rate Cash Back Cards

Flat rate cash back cards offer one singular rate – like 2% for all purchases made on the card. The cards are best for everyday spenders who don’t spend heavily in one specific category.

Tiered Cash Back Cards

Tiered cash back credit cards have a standard flat rate and special cash back rates in specific categories. For example, a tier cash back card may offer 1% back on all purchases and 5% back on any purchases made in US supermarkets. 

These can be especially rewarding if you find a card with a high cash back reward for goods and services you buy regularly. 

Tiered Cards with Changeable Categories

Some credit card issuers (like Discover) offer category changes with their tiered cash back credit cards. This means they offer a standard flat cash back rate and a higher cash back rate in specific categories that change regularly. Typically, category changes occur every quarter and need to be activated by the cardholder. 

You can find cash back categories such as:

  • Restaurants

  • Grocery stores

  • Hotels

  • Delivery services

  • Gas stations

This kind of credit card is great if you spend in a variety of categories and can remember to activate your cash back rewards. If you don’t want to bother with changing categories, a flat rate card will likely be best.

How to Choose the Best Cash Back Credit Card

In order to reap the rewards from cash back credit cards, you need to understand your spending habits. Choose a credit card that will pay you a high percentage for purchases you regularly make. You’ll also want to consider how the sign-up offers, annual fees, and category bonuses fit with your financial situation.

Sign-Up Bonuses and Introductory Offers

It’s common for credit cards to offer a sign-up bonus (ie. introductory offer) as an incentive to future cardholders. 

These sign-up bonuses may come with strings attached, like spending requirements within specific time periods. Be sure you can meet this requirement with what you already spend, as you don’t want to end up in credit card debt for a short term perk. 

Another common introductory offer is 0% APR. This zero interest period will have an expiration date and you want to be sure your balance is paid off before this date. Cash back incentives will not outweigh the interest you’ll pay if you carry a credit card balance

Always read the fine print in the credit card disclosure so you know what the credit card can offer you after the sign-up bonuses expire. This will help you decide whether to apply for the credit card or not.

Annual Fees

While it’s not as common for cash back credit cards to carry annual fees, some of them do (and offer a larger cash back bonus in an effort to make up for it).  The annual fee is only worth paying if the rewards outweigh the cost.

Category Bonuses

The category bonuses on cash back credit cards are an important consideration, too. Choose one that you’ll use consistently and that offers a high percentage of cash back for the goods and services you buy the most. 

Also review the earning caps for specific categories. For example, the American Express Blue Cash Preferred® Card offers 6% cash back for groceries, but this only applies for $6,000 of supermarket purchases per year (then it returns to the standard 1% rate). The gas reward for this card is at 3%.

Why Choose a Cash Back Card?

Cash back credit cards are a popular choice for many, but you should review the pros and cons to see whether it’s the right credit card for you.

Pros of Cash Back Credit Cards

  • Get paid for purchases you already make 
  • Variety of cash redemption choices (e.g. statement credit, direct deposit, mailed check) 
  • Easy to find a cash back credit card without an annual fee

Cons of Cash Back Credit Cards

  • Limited perks (e.g. loyalty discounts, airport lounge access) 

  • If you carry a balance, the cash back will not outweigh regular interest rates 

  • Potential for earning caps in high-rate cash back categories

How to Benefit Most from Cash Back Cards

Predictable spending patterns can help you take better advantage of a cash back credit card. You always want to compare your spending habits (and rewards) when evaluating how a cash back credit card can benefit you. Once you understand this, direct your focus on the sign-up bonus and annual fee.

Get the Most Out of Sign-Up Bonuses

Think about the sign-up bonus as a short term perk. For example, if you can earn a $250 statement credit for your first $1,000 in purchases, great. But how will the card benefit you afterward? 

Sign-up bonuses can boost your rewards, but only for a period of time. Consider the long term and the rates your card will offer for your spending habits.

Is Your Annual Fee Worth It?

Calculate how much you plan to spend on the card and how much you anticipate getting back. If it doesn’t wipe out the cost of the annual fee (while leaving a little cash in your pocket), find a cash back credit card without one. Thankfully, you have plenty of cash back credit card options that don’t carry these fees.

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Ask an Expert
All of our content is verified for accuracy by Mark Herman, CFP and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about The Best Cash Back Credit Cards for 2021 - Up to 6% Cash Back.

Is 1.5% Cash Back Good?

1.5% cash back is good, and it should be the minimum flat rate cash back credit card you aim for. 
If you opt for a tiered cash back credit card (even a changing tier card), the concept of a “good” rate can change a bit. In this case, the standard flat rate can be 1%, as long as the high rate special category is at least 3%.

Are Cash Back or Reward Points Better?

One type of credit card reward is not better than the other: It comes down to personal preference. That said, point reward systems can be confusing, so the clearest and easiest-to -understand cash back rewards are usually better for novice credit card users.

What Can You Do with Cash Back Rewards?

Anything you want – it’s your money to spend! Maybe you can finally press “Purchase” on your Amazon cart.

How Can I Maximize My Cash Back Rewards?

If you have excellent credit, consider a multi-card strategy. Keep one cash back card with a high flat rate (at least 1.5%) and another cash back card with a high rate for a specific category, like restaurants. Use the credit cards strategically to maximize your cash back rewards.

Do Cash Back Rewards Expire?

Yes, in some cases your cash back rewards can expire. This depends on the credit card issuer and their redemption policies. Some credit card companies have the option to set up an automatic cash back withdrawal to avoid expiration.

Do I Need to Pay Taxes on Cash Back Rewards?

Generally, cash back rewards are non-taxable by the Internal Revenue Service (IRS). They can be thought of as rebates or discounts. Just like you don’t account for the money saved with coupons, you don’t need to worry about cash back rewards.

How Do I Break a Tie Between Two Cash Back Cards?

Can’t decide which cash back card to choose? Make your decision based on the benefits of the credit card beyond the cash back rates. Consider the following: 

  • Do you need a credit card with no foreign transaction fees for an upcoming trip? 

  • When it comes to interest rates, is the regular APR lower on one than the other? 

  • Do they offer travel insurance or discounts on car rentals? 

  • What is the sign-up bonus for each card?

Mark Herman has been helping friends with financial questions since serving as an Army helicopter pilot. Since then, he’s gained valuable experience in the corporate world before moving on to become a Certified Financial Planner™.

If you have a question about The Best Cash Back Credit Cards for 2021 - Up to 6% Cash Back, then please ask Mark.

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