What is a cash back credit card? - Cash Back Cards FAQ

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Credit Card Applications » Questions » FAQs » Cash Back Cards » What is a cash back credit card?

What is a cash back credit card?

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A cash back credit card is a card that offers a cash back reward program as an incentive. Essentially, it means that a percentage of the amount spent on purchases is returned to you. This percentage may differ depending on the terms of a credit card issuer that produces your card. For example, the amount of your cash back is 3%. It implies that if you spend $100 with this credit card, you’ll earn $3.

Cash back credit cards often have welcome bonus offers. Such offers are a pleasant addition to the overall rewards program. However, you can usually get them if you meet certain requirements. As a rule, you have to spend a certain amount during the first months after you get the card (usually 3 or 4 months). The usual bonus offer is somewhere around $100, and bigger offers are exceptional and noteworthy. As for the amount of cash back you are going to earn, cash back cards work in different ways, and the size of the reward bonus can be different.

Cash Back Credit Cards for Good and Excellent Credit History:

Card Name: Earning Rewards: Rewards Bonus: Annual Fee:
Discover it® – Cashback Match™ Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate. Earn 1% cash back on all other purchases. INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically. $0
Discover it® chrome 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases every quarter – no sign-ups needed. Plus, 1% cash back on all other purchases. INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically. $0
Citi® Double Cash Card – 18 month BT offer Earn cash back twice on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. $0*
Credit One Bank® Cash Back Rewards Credit Card All purchases automatically get you 1% cash back if you qualify, terms apply $0 – $99

See more cash back cards>>

Besides, you need to know how you can redeem your cash back. Banks have different rules of redeeming cash back and you should always check what ways of redeeming are allowed for your card. Namely, the most popular ways are the following:

  • Bank Deposit: the cash back you’ve earned is put onto your checking or savings account. Some banks need you to accumulate a minimum amount, some don’t. Check terms and conditions of the credit card’s issuer to see how your card works.
  • Statement Credit: this way you can apply your cash back to your credit card balance.
  • Gift cards: some issuers allow you to buy gift cards from popular retailers to redeem your cash back.
  • Charitable donations: some credit card companies allow you to donate some or all of your cash back to the charity of your choice.

As for the amount of cash back you are going to earn, cash back cards work in different ways. Some cards give you a fixed amount of cash back for all purchases. This is convenient if you can’t be bothered with choosing which card to take at which store. On the other hand, some credit cards may offer tiered rates of cash back depending on where you spend most. For example, the Discover it® chrome card gives you up to 2% cash back at restaurants and gas stations and 1% cash back on all other purchases. Such cards allow you to earn more on different categories and adjust your card to your type of spendings.

Some cards give you big rewards on rotating categories. These categories change every quarter. This means that during these three months you will earn increased and usually very high rewards on certain purchases and regular rewards on all other purchases. Usually you need to register each quarter to get rewards. A good example of such a card is the Discover it® – Cashback Match™, which gives you up to 5% cash back in rotating categories on up to $1,500 in purchases when you activate and 1% cash back on all other purchases. Note that you need to register each decade to start getting rewards within the category.

Credit cards also differ by the requirement for redemption. Some only allow to redeem cash back as soon as you accumulate a certain amount, some make you wait for a certain period to pass, some allow you to redeem straight away.

Cash back credit cards are an individual choice, but if you compare all the options, you will be able to answer the question ‘what is the best cash back credit card’ for yourself and choose the one that suits your spending habits.

Here, at Credit-Land.com you can choose from a large pool of cash back credit cards, compare them and apply for a cash back credit card. Even if you have limited credit history, you can still find cash back credit cards just for you.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Earn cash back twice on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
For Excellent, Good Credit
Enjoy peace of mind with $0 Fraud Liability
For Fair Credit