What are the best cash back credit cards in February 2024?

Cash back credit cards, as the name suggests, give you the opportunity to get back money when you make certain purchases with them. The rewards percentage that you receive when swiping to pay for common expenses like entertainment, dining out, gas, groceries, travel and more typically range from 1% to 2%, but the best ones offer much more. Some also offer initial bonus payment amounts after a specific sum of purchases within a limited timeframe.

The cash back rewards redemption options can come in several forms including as a statement credit, a check, a direct deposit into a bank account. Sometimes, they can be claimed as a gift card, merchandise or straight up cash from an ATM.

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What are the best cash back credit cards in February 2024?

When choosing the one that is best for you, you’ll want to consider the flexibility of the reward categories and the percentage you can earn along with if there are limits to the rewards. Also, you should keep in mind if there is an annual fee and the APR as well as what kind of credit rating you may be required to have in order to qualify. Here’s a look at some of the best.

Wells Fargo Active Cash® Card

The Wells Fargo Active Cash® Card has no annual fee and comes with an intro 0% APR on purchases and qualifying balance transfers that lasts for 15 months from the time the account is opened. While the cash back reward is only 2%, it is unlimited and as long as your account stays open the rewards don’t expire. Also, after spending $500 in the first three months, you can earn a $200 cash rewards bonus. Bankrate as well points out that the rewards are flexible too, with “no categories to track or remember.”

Capital One SavorOne Cash Rewards Credit Card

Among the benefits of the Capital One SavorOne Cash Rewards Credit Card is unlimited 3% cash back on purchases in popular categories including dining, entertainment, popular streaming services and at grocery stores, but not those made at Walmart or Target. Purchases made through Capitol One Travel and Entertainment can earn 5% and 8% cash back respectively. There is no annual fee and a 0% intro APR for 15 months.

Blue Cash Preferred® Card from American Express

While this card has no annual fee the first year, after that it’s $95 per year. However, the annual fee can be offset with roughly $132 in grocery purchases per month according to Bankrate as it offers at 6% one of the highest reward rates at US supermarkets. The cash back rewards come in the form of Reward Dollars, redeemable as a statement credit or at Amazon.com checkout.

Bank of America® Customized Cash Rewards credit card

If you like to customize which bonus category will earn you the most cash back, the Bank of America® Customized Cash Rewards credit card may be for you. Once per calendar month, you can select a choice category that will earn you 3% back on your purchases. It is one of the few that also lets you get year-round cash back on purchases at both grocery stores and wholesale clubs at 2%. This card has no annual fee and a 0% intro APR for 15 months as well as balance transfers made in the first 60 days.

Discover it® Cash Back

This card has no annual fee and Discover will match all of the cash back that you’ve earned at the end of your first year, without a limit, as part of its introductory offer to new cardmembers. You can redeem your rewards ranging from 1% to 5% for cash at any time. I also comes with an intro 0% APR for 15 months on purchases.

Chase Freedom Rise

All the before mentioned cash back credit card require a good to excellent credit rating, but those who have no established credit history may be able to acquire a Chase Freedom Rise card. According to CNN, those with a balance of at least $250 in a Chase checking account have a better chance of approval. The card has no annual fee and you can earn 1.5% cash back on purchases. After six months, Chase will consider increasing your credit limit which can help your credit score if you use your card responsibly.

Considerations when choosing a cash back credit card

It’s important to compare the potential earnings to any associated fees. Also, like all credit cards, these may have interest rates that apply if you carry a balance from month to month. Cash back credit cards are best for those who pay off their balance monthly.

You’ll also want to pay attention to the fine print. Each cash back credit card has its own terms and conditions, including any restrictions on eligible purchases, limits on earnings, and expiration policies for rewards.

When choosing a credit card, consider your spending habits and preferences. Some cards might be more suitable if you frequently spend in specific categories, while others offer a consistent cash back rate across all purchases.