Best cash back credit cards for June 2023

Flat-rate cash back cards offer the same rewards rate for each eligible purchase. These cards are great for those who aren't keen on activating and tracking bonus categories each quarter.

Top examples include:

• Wells Fargo Active Cash Card (earns cash rewards)
• Citi Double Cash Card
• Capital One Quicksilver Cash Rewards Credit Card

If you prefer tiered category cards over flat rate cards, make sure you’re covered for all of the categories you spend within. If you aren’t, a 2 percent flat rate card could fill gaps in your rewards strategy.

Tiered cash back cards offer different rates of cash back for different types of purchases. For example, a tiered card may offer a boosted cash back rate of 3 percent on restaurant purchases, while all other purchases are rewarded with 1 percent cash back. The best way to maximize your cash back earnings is to have multiple tiered cards that reward your most common purchases at a high rate.

Top examples include:

• Blue Cash Everyday^® Card from American Express
• Capital One SavorOne Cash Rewards Credit Card

Some credit cards offer bonus categories that change based on your preferences, your spending habits or the time of year. This can be an advantageous structure for those who don’t want to commit to specific bonus categories. Here are a few of the most common dynamic bonus category structures.

• Rotating bonus categories: With rotating categories, you’ll often get higher rewards rates, but these cards typically require enrollment each quarter to qualify. Unlike flat-rate cards, rotating bonus categories tend to set spending limits on how much you can earn in high rewards categories per quarter.
• Choose your own category: Some cards let you choose your cash back category on a monthly basis. With the option to change the monthly category, you can optimize your spending based on the category and plan out your year based on the cash back potential. For example, for the holiday months, you can opt into a category that will reward online purchases or department store purchases.
• Auto-optimizing bonus categories: This setup is a lot like the “choose your own category” structure. However, instead of having to determine which bonus category is going to benefit you the most, these cards will do the work for you. Usually, the card will retroactively apply the bonus rate to purchases within your top eligible category each month.

Top examples include:

• Discover it® Cash Back
• Chase Freedom Flex
• Bank of America Customized Cash Rewards Card

Some cash back credit cards require a membership. These cards can often be quite lucrative. Co-branded cash back credit cards generally let you earn rewards and extra perks at specific stores or service providers. They often skip the annual fee, given you’ll need to pay for annual membership to enjoy the card’s benefits. Some credit unions also offer cash back card options to their members. Since credit unions are controlled and financed by members themselves, these members will often reap the benefits of more favorable interest rates and fewer banking and penalty fees that their not-for-profit institution provides. Membership requirements vary by credit union.

• Amazon Prime Rewards Visa Signature Card (requires an Amazon Prime membership, $119 a year)
• Costco Anywhere Visa Card by Citi (requires a Costco membership, at least $60 a year)
• Sam’s Club® Mastercard® (requires a Sam’s Club membership, starting at $45 per year)
• Alliant Cashback Visa Signature Credit Card (requires Alliant Credit Union membership)

With gas prices soaring to record highs, a cash back credit card can help minimize the pain at the gas pump. Cards that offer cash back on gas typically earn up to 3 percent back, but if you spend a lot of time on the road or drive a car that doesn’t get the best gas mileage, try to aim higher. Some customizable cash back cards earn up to 5 percent cash back in everyday bonus categories, including gas stations. Our pick for you: Citi Custom Cash℠ Card

If your card covers dining purchases, you’ll earn rewards at your favorite restaurants, from fast food to fine dining, and often even when ordering takeout through a food delivery service like DoorDash. And if your card earns grocery rewards, that may even include specialty food stores like delis, bakeries, candy stores and butchers. Our pick for you: Capital One SavorOne Cash Rewards Credit Card

Even people who prefer the utmost simplicity — we’re talking longtime debit users — can find lots to love in a cash back card. A flat-rate, no annual fee cash back card is a great choice for someone who wants to earn rewards without much thought. Some cards even let you set up automatic bill payments and rewards redemptions for the ultimate “set and forget” rewards strategy. Our pick for you: Citi Double Cash Card

The best time to build credit is before you really need it. That’s why it makes sense to use a credit card throughout your college years. Then, by the time you graduate and need a home or auto loan, you’ve spent years building an excellent credit score and earning cash rewards. Our pick for you: Capital One SavorOne Student Cash Rewards Credit Card.

A cash back card that fits your spending habits can help put more money back in your wallet. To maximize your cash back earnings, consider carrying a credit card that rewards you at a high rate for your largest and most frequent purchases, as well as a good flat-rate card for everything else. Our picks for you: the Chase Freedom Unlimited and Wells Fargo Active Cash® Card

Since cash back cards come with different bonus categories, spending caps, annual fees and other features, the card that earns you the most cash back overall will depend on a number of factors, including your spending habits.

For example, if you have good-to-excellent credit and spend heavily on groceries, the Blue Cash Preferred will likely earn the most cash back, thanks to its best-in-class cash back rate at U.S. supermarkets. 

But if you have fair credit or prefer the prices at superstores, the Capital One Walmart Rewards® Mastercard® may be a solid pick thanks to its impressive 5% cash back rate on Walmart.com purchases, including grocery pickup and delivery orders.

You may not receive cold, hard cash, but issuers offer redemption options like a direct deposit into a checking account, mailed checks, statement credits or gift cards.

Generally, the cash back earned with a credit card is not considered taxable income. Learn more about what credit card rewards can be considered taxable.

The right credit card for you will depend on your spending habits and the perks that matter most to you. Travel cards are a great option for people who want to earn rewards that can be redeemed for travel and who can take advantage of travel-related perks, which may include hotel or airline elite status, free checked bags, free nights at hotels or airport lounge access.

But even the best travel credit cards for beginners will sometimes charge an annual fee. If you don’t travel often enough to justify an annual fee or want more flexibility in how you earn and redeem rewards, a cash back credit card may be a better option.