Credit Cards
Earn More Cash Back: Top Credit Cards for November 2024
Best Cash-Back Credit Cards of November 2024: Maximize Your Rewards.
Are you looking for a credit card that rewards you with cash back on every purchase? With so many options available, choosing the best cash-back credit card can be overwhelming. In this article, we’ll explore the top cash-back credit cards for November 2024, helping you make an informed decision.
Discover the best cash-back credit cards for November 2024. Maximize your rewards with top cards offering high cash back rates, sign-up bonuses, and 0% intro APRs.
What Is Cash Back on a Credit Card?
A cash-back credit card allows cardholders to earn a percentage back on eligible credit card spending. Typically, a cardholder can redeem any money earned from cash back as a statement credit, a check sent via mail or deposited directly into a qualifying bank account.
Many types of cards offer cash back, including those earning the same flat rate on everything you buy, those offering tiered cash back where certain areas of spending earn at a higher rate than other categories and cards offering elevated cash back in specific categories that change quarterly.
Due to the wide array of options, it’s imperative to consider what categories you spend the most in month-to-month so you can choose the best cash-back credit card for your spending habits.
How Do Cash-Back Credit Cards Work?
The process for earning and redeeming cash back works similarly across credit card issuers.
- Make an eligible purchase with your cash-back card. Certain credit card transactions, such as balance transfers, cash advances and annual fees, do not earn cash back. Make sure to consult your card’s terms and conditions to see what eligible purchases earn cash back.
- Earn a percentage of cash back on your spending. The exact amount depends on your card’s terms, and your earnings typically accumulate in your card’s rewards account.
- Redeem your cash back according to your issuer’s requirements. Depending on your card, you may have different options for redeeming your cash back, including but not limited to a statement credit against your balance, a direct deposit or a check. Some cards allow you to redeem your cash earnings in any amount at any time, while others require a minimum balance to cash out.
How Much Cash Back Can You Get?
For the most part, the amount of cash back you can earn depends on how much you spend on your card and the rewards rate offered by the card. If you spend $5,000 per year on a card that earns 2% cash back on every purchase, you’ll earn $100 in cash back. Someone spending $25,000 on the same card would earn $500.
You can earn more cash back using credit cards with higher earning rates on select categories. For example, if you spend $5,000 on groceries on a card that offers 6% on that category, you’ll earn $300 in cash back—a much larger reward for the same spending.
Keep an eye on your card’s terms to help determine how much cash back you can earn. Many credit cards offer unlimited cash back. Others may cap the amount you can earn in certain categories and lower the return rate once you max out that type of purchase.
Types of Cash-Back Credit Cards
Generally, three kinds of cash-back credit cards rule the market: flat-rate, tiered-rate and rotating category credit cards.
| Flat-Rate Credit Cards | Rotating Category Credit Cards |
|---|---|
| Earn the same percentage back on all eligible spending | Higher-than-average cash back, typically 5%, on specific spending categories up to a quarterly maximum |
| Typically 1% to 2% cash back on all purchases | After quarterly maximum is reached, cash-back rate usually drops to 1% |
| Usually no spending caps or category restrictions | Rotating bonus categories change every three months and may require activation to earn increased cash back |
| All other purchases typically earn 1% |
| Tiered-Rate Credit Cards | |
|---|---|
| Earn the same percentage back on all eligible spending | Elevated cash back earnings on specific categories, such as dining, travel, groceries, gas and more |
| Typically 1% to 2% cash back on all purchases | Lower flat-rate cash back on all other purchases |
| Usually no spending caps or category restrictions |
Factors To Consider When Choosing a Cash-Back Credit Card
The best credit card for cash back is the one that best fits your lifestyle and spending habits. The right cash-back credit card for someone else may not be the right cash-back card for you.
Forbes Advisor aims to help you by identifying what each cash-back card is best for, but you should always do the math yourself and consider not only how much cash back you could earn but also how you might use the other card benefits.
After identifying how much you spend in different areas and what other card features could benefit you, you’re ready to compare credit cards and shop for the best one for you. As you compare cards and credit card issuers, there are some things that you should incorporate into your evaluations.
Fees
Is there an annual fee? How much would you have to spend on the card to earn enough cash back to at least cover the annual fee? How does that compare to a similar card that doesn’t charge an annual fee? What other fees might you have to worry about?
Annual Percentage Rate (APR)
Credit card interest rates are typically higher than other types of loans. If you don’t think you’ll be able to pay off your credit card in full each month, a credit card may not be the right fit for you. If you want a credit card but don’t think you’ll be able to pay it off, you should pay close attention to how much interest you might incur on purchases and balance transfers. If this sounds like you, you should consider a card with an introductory 0% APR offer or a card that’s good for balance transfers.
Cash-Back Rate
Cash-back rates vary from card to card. Consider the areas of your life where you spend the most money, and choose a card that will reward you accordingly.
Bonus Categories
Will you be able to take advantage of the bonus categories? If the card offers 3% on gas and groceries, but you take the train and prefer to dine out, then that’s not the cash-back card for you.
Redemption and Rewards
Can you use the cash back the way you want to? Many cash-back credit cards offer various ways to redeem what you earn, such as statement credit, a check, a deposit into a savings or investment account, discounted travel packages and so on. Some cards are more restrictive than others. Make sure you know how you will be able to redeem your hard-earned rewards.
How To Make the Most of Your Cash-Back Credit Card
There are a few strategies to make the most of your cash-back credit cards and earn elevated rewards across multiple categories:
- Find a card that aligns with your spending. Before choosing a cash-back card, take a look at your expenses to see which categories you spend the most in. By selecting a card that provides the highest cash back on your common spending categories, you can maximize your daily earnings.
- Consider the annual fee. If you are considering a cash-back card that carries an annual fee, make sure to calculate if the cash back you anticipate earning will exceed the cost of holding the card. If the answer is no, you’d probably be better suited with a no annual fee card.
- Pay off your card in full every month. To be blunt, credit card rewards are not worth anything if you carry a balance and pay interest on your credit cards. If you want to maximize the cash back you are earning, make sure to pay off your card in full to avoid pesky interest and fees.
- Pair multiple cards. For instance, you could use a card rewarding gas purchases at 3% cash back, another earning 4% cash back on groceries and yet another earning 2% cash back on all purchases. Where the first two cards likely only reward non-bonus category spending with 1% cash back, you can pair multiple cards to reward the major spending you do across all categories.
If you are considering opening a second cash-back credit card account, beware of the increased responsibility of managing multiple cards. More cards means more monthly statements, minimum payments, fees and risk of accrued interest.
Common Cash-Back Bonus Categories
Many cash-back bonus categories focus on rewarding everyday spending in areas such as dining, groceries and gas. Some cards allow you to choose your own category or reward the category in which you spend the most. Others focus on more obscure categories. Common categories include:
- Dining
- Groceries
- Gas
- Travel (including flights, hotels and car rentals)
- Home improvement or home furnishings
- Utilities
Alternatives to Cash-Back Credit Cards
Depending on your preferred redemptions, comparing other types of credit card rewards alongside cash-back credit cards may be valuable in deciding on your next card.
Cash Back vs. Travel Rewards
Travel rewards, such as airline miles or hotel points, can be strategically redeemed to get outsized value. Every travel program has sweet spots where a single point or mile could be worth five or ten cents each when redeemed tactically. However, this assumes you’re well-versed in the program’s strengths—and have the flexibility to take advantage of them.
Compare this to cash-back credit cards, which offer stable value. You don’t have to hunt for the most valuable redemptions or worry about getting below-average value. It’s also much simpler and doesn’t require a time investment in order to redeem rewards.
Cash Back vs. Flexible Bank Points
But what’s better: cash back or flexible bank points? Many card issuers offer proprietary points instead of traditional cash back. These programs, like Chase Ultimate Rewards or Citi ThankYou Points, build in flexibility. When you earn credit card points, you can redeem them as cash back (often, but not always, equivalent to 1%) or for other rewards through the program. A common redemption option is to book travel through the issuer’s points travel portal to get 25% more value with every point. You may also be able to transfer points to partnering travel loyalty programs, effectively earning travel rewards.
Once again, cash back is the easiest and most straightforward option. However, credit card points usually have one or more different redemption options that are still relatively simple yet provide a greater return. Compared to cash back’s fixed redemptions, the flexibility of these points is their greatest attribute.
Top 5 Cash-Back Credit Cards for November 2024.
- Citi Double Cash Card: – 2% cash back on all purchases (1% when you buy, 1% when you pay)- No rotating categories or spending limits- 0% intro APR for 18 months.
- Chase Freedom Unlimited: – 3% cash back on all purchases in your first year up to $20,000 spent – 5% cash back on travel booked through Chase – 0% intro APR for 15 months.
- Discover it Cash Back: – 5% cash back on various categories throughout the year (e.g., gas stations, grocery stores) – 1% cash back on all other purchases – No annual fee.
- American Express Blue Cash Preferred: – 6% cash back on groceries – 3% cash back on gas – $250 statement credit after spending $1,000 in the first 3 months.
- Capital One Quicksilver Cash Rewards: – Unlimited 1.5% cash back on all purchases – One-time $200 bonus after spending $500 in the first 3 months – 0% intro APR for 15 months.
Factors to Consider When Choosing a Cash-Back Credit Card
1. Cash Back Rate: Look for cards offering high cash back rates on specific categories or all purchases.
2. Intro APR: Consider cards with 0% intro APRs to save on interest charges.
3. Annual Fee: Weigh the benefits against the annual fee.
4. Rotating Categories: Some cards offer higher cash back rates on specific categories that change quarterly.
5. Sign-Up Bonus: Look for cards offering generous sign-up bonuses.
Tips to Maximize Your Cash-Back Rewards
1. Use your card for daily purchases: Earn cash back on everyday expenses.
2. Take advantage of rotating categories: Maximize cash back on specific categories.
3. Pay your balance in full: Avoid interest charges.
4. Monitor your spending: Ensure you’re meeting spending requirements for sign-up bonuses.
Are Cash-Back Credit Cards Worth It?
Cash-back cards generally fall into one of three categories:
- Flat-rate rewards, such as 2% cash back on every purchase.
- Rotating-category rewards, such as 5% cash back on a selection of purchase categories that update every quarter, then 1% cash back on remaining purchases.
- Fixed-category rewards, such as 6% cash back on groceries, 3% cash back on gas or 2% cash back on restaurant purchases, then 1% cash back on remaining purchases.
The best type of cash-back card will vary depending on your purchase habits. If you have a large amount of purchases in a specific category, such as groceries or gas, it makes sense to find a card that offers bonus cash for your frequent purchases. But if you want a “set it and forget it” card, a flat-rate cash-back card will likely make more sense for you. If you want to maximize your cash-back earnings, consider pairing a flat-rate card with one that offers a rewards-earning bump for where you shop most often.
Cities Most Reliant on Credit Cards for Essential Living Expenses
With the rising cost of goods and stagnant wages, many Americans are finding it difficult to cover basic expenses. A Forbes Advisor study surveyed 2,500 people in the 25 largest U.S. cities and highlighted the extent to which credit cards are relied upon for everyday expenses. Overall, 56% of respondents have accumulated credit card debt to buy groceries and 24% lack alternative methods to cover essential costs without credit. Las Vegas was found to have the highest dependence on credit cards and Seattle had the lowest.
Best Cash-Back Credit Cards FAQs
What’s the best cash-back credit card?
There’s no one best cash-back credit card for everyone. Your spending habits and preferences determine which card will hold the most reward potential for you. Though many cards may net you more value with bonus categories, welcome bonuses and other benefits, the highest flat-rate cash back can be achieved with the Alliant Cashback Visa® Signature Credit Card, which earns 2.5% cash back on up to $10,000 in eligible purchases each billing cycle and unlimited 1.5% cash back on all other eligible purchases, charges no annual fee and requires cardholders meet certain requirements before earning cash back, including membership with the credit union. Because of these limitations, this card did not make it on this list. Other cards will likely net more value when evaluated holistically.
How do I get cash back from a credit card?
Redeeming your cash back is a painless process that can be easily done through your credit card account.
- Request to redeem your cash back within your credit card account. You’ll have to log in to your account via your issuer’s website or mobile app.
- Select the amount of cash back you’d like to redeem. This is also the time to select how you want to get your cash back. Typical options include a statement credit, online deposit to a linked bank account or a check mailed to your address. Some cards may redeem cash back automatically by applying it as a statement credit on your account.
- Wait for your cash back to arrive. If you redeemed your cash back as a statement credit, you may see it immediately applied to your credit card account. If you are expecting a check or a deposit, keep an eye on your account and mailbox until the payment arrives.
Which credit card gives the most cash back?
There’s no top cash-back credit card that will earn the most rewards for everyone. The highest-paying cash-back card available today depends on how you spend money and how many cards you want to have.
For example, a card might earn 6% cash back up to the first $6,000 in spending at U.S. supermarkets and, after that, 1%. But if you rarely shop for groceries, you might get more utility out of a card that earns an unlimited 4% cash back on dining and entertainment, 2% on groceries and 1% on all other spending.
If you’re looking for the highest paying flat-rate cash-back credit card, the Alliant Cashback Visa® Signature Credit Card* is hard to top. It earns 2.5% cash back on up to $10,000 in eligible purchases each billing cycle and unlimited 1.5% cash back on all other eligible purchases and carries a $0 annual fee. You’re required to join Alliant’s credit union to apply for the card.
Do cash-back cards actually give you cash?
While many credit card cash-back reward programs redeem cash back as a statement credit to your account, some also allow you to redeem your cash back as a check or deposit to your bank account. If you’re looking for a program to literally mail you a stack of benjis, you’re probably out of luck.
What is the best cash-back credit card for groceries?
If you’re looking for the best cash-back credit card for groceries, here are some top options:
- Blue Cash Preferred Card from American Express: This card offers excellent rewards on everyday purchases, including 6% cash back on groceries
- American Express Gold Card: While not exclusively a grocery card, it provides travel rewards on grocery purchases, making it a great option for those who travel frequently
- Blue Cash Everyday Card from American Express: If you want a card with no annual fee, this one offers 3% cash back on groceries.
- Citi Custom Cash Card: This card provides customizable rewards, allowing you to choose your 5% cash back categories, including groceries.
- Capital One SavorOne Cash Rewards Credit Card: If you enjoy dining out, this card offers 4% cash back on food and entertainment, plus 3% cash back on groceries.
- Bank of America Customized Cash Rewards credit card: This card offers 3% cash back on groceries, plus 2% cash back at wholesale clubs.
Chase Sapphire Preferred Card: For online grocery shopping, this card provides 3X points per dollar spent.
When choosing a cash-back credit card for groceries, consider factors like annual fees, interest rates, and rewards categories to ensure you maximize your benefits.
Do cash-back credit cards have annual fees?
Yes, some cash-back credit cards have annual fees, while others do not. The annual fee can vary depending on the card issuer, rewards program, and benefits offered.
Cards with Annual Fees:
1. American Express Blue Cash Preferred: $95 annual fee
2. American Express Gold Card: $250 annual fee
3. Chase Sapphire Preferred: $95 annual fee
4. Citi Premier: $95 annual fee
5. Discover it Miles: $0 first year, then $95
Cards with No Annual Fees:
1. Citi Double Cash Card
2. Chase Freedom Unlimited
3. Discover it Cash Back
4. Capital One Quicksilver Cash Rewards
5. Bank of America Cash Rewards credit card
Factors to Consider:
1. Rewards rate: Higher rewards rates may justify an annual fee.
2. Sign-up bonus: A generous sign-up bonus can offset the annual fee.
3. Additional benefits: Travel insurance, purchase protection, or concierge services may be valuable.
4. Spending habits: If you spend heavily in specific categories, an annual fee may be worth it.
Tips:
1. Weigh benefits against fees.
2. Calculate your potential rewards earnings.
3. Consider alternative cards with similar benefits and no fees.
4. Read reviews and compare offers.
When choosing a cash-back credit card, carefully evaluate the annual fee and benefits to ensure it aligns with your financial needs and spending habits.
Can I use my cash-back credit card abroad?
Yes, most cash-back credit cards can be used abroad, but consider the following factors:
Foreign Transaction Fees:
1. Some cards charge 1-3% foreign transaction fees on international purchases.
2. Look for cards with no foreign transaction fees, such as:
– Chase Sapphire Preferred
– Capital One Quicksilver Cash Rewards
– Citi Premier
– Barclays Arrival Plus
International Acceptance:
1. Major credit card networks (Visa, Mastercard, Amex) are widely accepted worldwide.
2. Some merchants may not accept American Express.
3. Consider a card with a Visa or Mastercard logo for broader acceptance.
Exchange Rates:
1. Credit card issuers use competitive exchange rates.
2. You may get a better exchange rate with your credit card than with cash or traveler’s checks.
Travel Benefits:
1. Some cash-back cards offer travel-related benefits, such as:
– Travel insurance
– Trip cancellation insurance
– Airport lounge access
– Concierge services
Tips for Using Your Cash-Back Credit Card Abroad:
1. Notify your bank of international travel plans to avoid transaction flags.
2. Use ATMs wisely to avoid high withdrawal fees.
3. Make purchases in local currency to avoid dynamic currency conversion fees.
4. Keep your card information secure.
5. Consider a card with chip technology for enhanced security.
Popular Cash-Back Credit Cards for International Travel:
1. Chase Sapphire Preferred
2. Capital One Quicksilver Cash Rewards
3. Citi Premier
4. Barclays Arrival Plus
5. Discover it Miles
Before using your cash-back credit card abroad, review your card’s terms and conditions to ensure you understand any fees or limitations.
Conclusion
The best cash-back credit card for you depends on your spending habits and financial needs. Consider the top cards listed above and factors to consider when choosing a cash-back credit card. By maximizing your cash-back rewards, you can earn hundreds or even thousands of dollars per year.
