Cash back credit cards offer consumers an alternative form of reward to travel and rewards credit cards, often featuring low or no introductory APR on purchases and balance transfers, making them valuable tools for building credit while still reaping some financial benefits from spending.
The top cash back cards offer higher rewards rates, so you can make more money off each purchase you make with them. In addition, some card issuers provide special bonus categories like 6% cash back on groceries and gas purchases or 2% on dining out and transit (taxis/rideshare/parking/tolls/trains).
Though you can find excellent cash back cards with these advantages, it’s essential that you find one tailored specifically to your needs. If your credit score is excellent, a card offering 5% cash back rates in specific categories such as grocery or gas may be worth investing the extra work in to keep more of your earnings in your pockets.
Other cash back apps, like Ibotta and Dosh, require users to add offers before shopping at stores or online and scan or upload receipts post-purchase in order to redeem rewards. While using these apps can be time consuming, Team Clark member Beth suggests planning ahead by placing offers near the top of your grocery list to maximize earnings and eventually redeem as checks, PayPal transfers or Venmo donations when reaching a certain threshold in their accounts.