Costco recently announced that next year it would stop accepting American Express AXP +0.22% at is warehouses. This will bring to a close a 16-year relationship between the two companies. Fans of the TrueEarnings® Card from Costco and American Express quickly realized that the days of this popular cash back credit card are numbered.
The loss of the TrueEarnings card, which I’ve carried for years, seemed like a good time to review some of the best cash back cards currently available. I’ll start with a card I recently obtained and is one of the top offers available today. (I doubt this article will sway Dave Ramsey from his staunch view that credit cards should be avoided at all costs, but you never know.) I have compiled 8 best cash back credit cards.
1. Citi® Double Cash Card: Citi set the bar high with this cash back offer. The Citi Double Cash card pays 1% on every purchase and an additional 1% as you pay for those purchases. The math here isn’t complicated. Purchases once paid for result in a total 2% cash back. As you’ll see below, there are other cards that offer similar rewards, but none without significant requirements.
In addition to the cash rewards, this card offers a lengthy 0% APR offer on both balance transfers and purchases. Combined with no annual fee, and the Citi Double Cash Card easily makes the top of this list. It’s the only card I use with ApplyPay.
2. Fidelity® Investment Rewards® American Express® Card: For those with an account at Fidelity, this American Express card is a perfect fit. Simply put, you’ll earn 2% cash back on every purchase. Rewards are transferred to your Fidelity account. Every $2,500 spent on the card results in a $50 transfer to your Fidelity account. Unlike the Citi Double Cash card, rewards must be transferred to a Fidelity account. Eligible accounts include the Fidelity® Cash Management Account, brokerage account, Fidelity-managed 529 account or retirement account.
3. Blue Cash Preferred® Card from American Express EXPR +5.26%: For those wanting higher rewards on select categories, the Blue Cash Preferred card is an excellent option. The card offers 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year), 3% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on all other purchases.
American Express also offers a $150 statement credit after you spend $1,000 on purchases on your new card in your first 3 months. Finally, the card offers 0% APR on purchases and balance transfers for 15 months. The card does carry a $75 annual fee.
4. Discover it®: Formerly the Discover More Card, this option pays 5% cash back on categories that rotate every three months. There are two things to keep in mind with the rotating categories. First, you must sign up for the 5% offers each quarter on the Discover website. Second, there are spending limits, typically $1,500, subject to the 5% offer. Purchases exceeding this limit, as well as all other purchases in other categories, earn 1% cash back.
Discover also offers 0% APR on balance transfers and purchases ranging from 6 months to 18 months depending on the offer you select. There is no annual fee. In addition, Discover provides its cardmembers with free access to their FICO scores.
5. Capital One Quicksilver Cash Rewards: With this card we move away from rotating categories. The Capital One Quicksilver pays 1.5% cash back on every purchase. New cardmembers can earn a $100 cash bonus by spending $500 in purchases within the first three months. The card also offers a lengthy 0% APR introductory rate on purchases and balance transfers. There is no annual fee.
6. BankAmericard Cash Rewards™ Credit Card: This card from Bank of America BAC +0.00% has cash rewards similar to what is offered by the TrueEarnings card. Cardmembers earn 3% cash back at gas stations at 2% cash back at grocery stores for the first $1,500 in combined grocery store and gas purchases each quarter. Other purchases earn 1% cash back.
Similar to the Quicksilver card, the BankAmericard Cash Rewards card offers a $100 cash rewards bonus after making at least $500 in purchases in the first 90 days of account opening. The card offers 0% APR for 12 months on both purchases and balance transfers. There is no annual fee.
7. Chase Freedom®: Much like the Discover it card, the Chase Freedom offers 5% cash back on categories that rotate every quarter. There is a $1,500 spending cap eligible for the 5% cash reward. Other purchases earn 1% cash back. A $100 bonus can be earned if you spend $500 on the card in the first three months. There is no annual fee.
8. USAA Cash Rewards® American Express® Card: With my son in the Marines, I would be remiss not to mention a cash back card offered by USAA. This card offers 5% cash back on up to $3,000 in gas and military base purchases every year, 2% cash back on up to $3,000 in supermarket purchases per year. All other purchases earn 1%. There is no annual fee.