14 Best cash back credit cards for December 2024

When you use a cash back card on eligible purchases, you’ll receive a small chunk of your expense back. Usually, that chunk is anywhere from 1 percent to 5 percent of what you spend, but it depends on what, where and how much you spend.

Think of cash back as an extra discount on purchases. There are just a few extra steps to get your money back.

Every cash back card is different and the highest paying one will depend on where you spend your money, what you buy and what you spend.

Take the Wells Fargo Active Cash as an example. It earns 2 percent cash rewards on every purchase. Suppose you want to buy a new couch from your nearest furniture store and it costs $1,000. You’ll earn $20 back with the Active Cash card because it earns a flat rate of 2 percent back. However, if you use the U.S. Bank Cash+ Visa Signature card for that same purchase, you can earn $50 back because it earns 5 percent back at furniture stores (when you enroll).

A 5 percent cash back rate is great, but it doesn’t cover the whole of most cardholders' budgets. If a universal highest-paying card exists, it’ll be one like the Capital One Savor Cash Card. This card earns a generous cashback rate in several common, everyday spending categories in most people’s budgets.

The right credit card for you will depend on your spending habits and the perks that matter most to you. Travel cards are great for people who know they want to redeem rewards for travel expenses like airline and hotel bookings. Travel cards also make sense if you want perks like hotel or airline elite status, free checked bags, free hotel stays or airport lounge access.

Cash back cards can be simpler to use and offer more flexibility in how you can earn and redeem rewards, with some allowing you to use rewards for cash back, travel spending and more. If you don’t travel often enough to justify an annual fee or want more redemption flexibility, a cash back card may be better for travel.

You may not receive cold, hard cash, but issuers offer redemption options like a direct deposit into a checking account, mailed checks, statement credits or gift cards.

Perhaps the closest you can get to redeeming rewards for physical cash is through a Wells Fargo card that allows you to redeem for cash withdrawals at eligible ATMs.

It depends on how you plan to redeem your rewards. If you plan to deposit your cash rewards into a high-yield savings account, it's best to redeem often so that you don't lose out on interest.

However, if you prefer to use your rewards for travel, you might save up your rewards to help cut future travel costs. In fact, your cash back might be worth more if you redeem through an issuer's travel portal, like Chase Ultimate Rewards. To maximize your earnings, check your issuer's redemption options and be strategic in how and when you redeem. 

Yes, a cash back credit card is flexible and valuable enough to be worth a spot in most wallets. However, there are a few cash back credit card alternatives that might be just as valuable depending on your needs. Here’s a few alternatives and how they may differ.

• Cash back vs. rewards credit cards: A rewards credit card earns points or miles instead of cash back. You can redeem these points in various ways, including gift cards, travel and statement credits, which can grant them even more flexibility than a cash back card. A few point-based rewards programs let you redeem for cash back at an equal value and still allow you to maximize your points’ travel value with transfer partners. 
• Cash back vs. travel credit cards: Travel credit cards typically earn miles instead of cash back, and are best if you want to redeem your rewards for flights and hotel stays. However, travel miles often lose value when redeemed toward cash back. Frequent travelers can take advantage of a travel card’s additional benefits to cut down on travel costs. You can choose from general travel credit cards, airline credit cards and hotel credit cards.

The primary criteria for a rewards-earning card’s rating is its rewards value. This includes the card’s average rewards rate, estimated annual rewards earnings, sign-up bonus value and reward redemption value.

To estimate a card’s average annual rewards earnings, we first calculate its average rewards rate based on how much it earns in different bonus categories and how closely its categories align with the average person’s spending habits. In other words, we assess whether the card earns rewards at a high rate in the most popular spending categories. 

We use consumer spending data from the Bureau of Labor Statistics (BLS) to get a reliable third-party measure of people’s spending habits. The most recent BLS data estimates average total spending in 2022 was $72,967 per consumer. We then narrow our focus to which purchases are likely to be put on a credit card and earn rewards, subtracting expenditures like housing, vehicle purchases and education. This gives us a total “chargeable” annual spend of around $22,500.  

Some of the major spending categories that contribute towards the annual spend include:

• Groceries: $5,700
• Dining out: $3,600
• Entertainment: $2,400
• Gas: $3,100
• Apparel and services: $1,900

Using this data, we assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 22 percent weighting based on how much of the average person’s budget is spent on groceries. We also estimate the redemption value of points or miles from various issuer, airline and hotel rewards programs.

This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases — as well as what those points are worth. We also use point valuations to determine a card’s sign-up bonus value

With these calculations complete, we assign each card a score based on how its average rewards earnings, sign-up bonus value, rewards rate and redemption value stack up against other rewards cards.

The better these values, the higher its score will be, making it more worthy of inclusion in our list and increasing its potential ranking.

Here’s a deeper look at the factors considered as part of a rewards card’s “Value” rating:

We also score cards based on how much it costs to keep them in your wallet or carry a balance. 

To start, each card is scored based on whether it offers an intro APR and how its ongoing APR compares to the rates available on other rewards cards. However, the latter rating only has a slight influence on the card’s score and whether the card is included in our list, since rewards card users generally try to avoid carrying a balance.

More important to both a card’s score and its inclusion in our list is how its annual fee influences its overall value. We consider a card’s annual fee in two ways — how it ranks relative to the fees you’ll find on other cards in the category and how it impacts a card’s overall rewards value. 

Cards with an annual fee will always be at a slight disadvantage in our scoring system since annual fees inherently cut into your rewards value. However, if a card offers terrific value via its ongoing rewards and perks, it can earn a high score and a spot in our list even if it carries a high annual fee. After all, the highest rewards rates and most valuable perks are often found on cards with annual fees. 

With this in mind, we rate a card based primarily on how its ongoing rewards value and ongoing perk value (such as annual credits or bonuses) stack up against those of other cards in the category when you subtract annual fees.

That said, we strive to include as many no-annual-fee options in our list as possible since many people would rather not worry about offsetting fees, even if a card carries impressive rewards and perks.

Rewards cards may make it easy to earn a lot of points, miles or cash back, but how easy is it to use those rewards? After all, if it takes a ton of effort to redeem rewards or you can only redeem rewards in a couple of ways, a card may be more trouble than it’s worth. 

As such, we rate each card’s flexibility based on the restrictions it imposes on earning and redeeming rewards. We factor this rating into a card’s overall score and consider it when deciding on a card’s inclusion in our list. 

Flexibility factors include whether a card only allows you to earn a high rewards rate on only a small amount of spending or requires you to meet a certain earning threshold before you can redeem rewards. We also examine whether your points are worth less when you opt for some redemption options over others and whether a card gives you the flexibility to transfer rewards to travel partners.