Note: I've updated my thoughts on this post. Follow this link to find out what I consider to be the best cash back credit cards.
Cash back credit cards are the preferred way to charge purchases IMO. As long as they are used the right way, you can earn extra money using them for doing nothing different than what you'd normally do (buy stuff that's in your budget that you can pay off each month.) Furthermore, you can maximize your cash back each year by taking three simple steps. This is what I do in managing my personal finances. It's an easy way to make several hundred extra dollars each year. Pretty cool, huh?
The best cash back credit card(s) will be different for each person based on a variety of factors (I covered this in Three Steps to Making the Most Money from Cash Back Credit Cards.) That said, since I regularly get questions about what I think are the "best" cash back credit cards, I wanted to weigh in on the subject. The list that follows is what I see as the top cards out of the thousands currently available. You won't go wrong by picking one (or a few) of these.
I've listed the cards below sorted by what I feel are the "best" cards in a given category first. Then I list others that are still good (and recommended) but are only better options for people with specific charging habits. Look over each carefully to see what's the best option for you.
There is also the Amex Blue Cash card.
- no annual fee
- 5% gas/groceries/drugstores (after $6500 in purchases)
- 1.25% everything else (after $6500 in purchases)
I use that card and the Chase Freedom card as my main 2 credit cards.
Posted by: Jclimber | July 07, 2011 at 11:50 AM
The Fidelity Retirement Rewards AmEx is my personal favorite. (they also have an investment and college savings version) 2% back on everything automatically swept into your Fidelity account when you hit $50 or more. If you already have an investment account with Fidelity it's a great option.
-no annual fee
-2% on everything, (unlimited as far as I can tell. I put six months of rent on it one month on top of moving expenses, no trouble)
Posted by: No Debt MBA | July 07, 2011 at 03:21 PM
Great initiative, FMF!
Posted by: Concojones | July 10, 2011 at 12:47 AM
The Citi Dividend isn't new. I have had this card maybe 7 years.
Posted by: Kyra | July 12, 2011 at 09:08 AM
I am with No Debt MBA, I use the fidelity AMEX too and I love it. They also have a visa that gives 1.5% back.
Posted by: Ginger | July 15, 2011 at 04:01 PM
What about the Discover More card? Their cash back limits are lower than Chase Freedom's, but I feel like they're a little more generous with their online rebates.
Posted by: Kelsey @ Zero to One Million | July 15, 2011 at 09:16 PM
I've also had the Citi card mentioned above, but when the Chase Freedom Mastercard came out, I switched. The Citi card often has the same rotating categories as the Chase card does, unfortunately.
Posted by: April | July 19, 2011 at 07:46 AM
Added a few more cards based on input from you all and others. Thanks!!!
Posted by: FMF | July 20, 2011 at 07:43 AM
The Hilton Honors card is great because it gives 6% back on telecom bills. I don't think any other gives specific bonuses to telecom bills. So even though you have to spend it at their hotels it's still better than 1.5% cash if you ever plan on staying at a hotel.
Posted by: Ash | December 09, 2011 at 12:05 PM
Based on lowest mortgage rates today, best cash back credit cards could also be use with other loaning transaction such as house loan and car loan.
Posted by: Lea Michelle | December 13, 2012 at 09:45 AM