Best 5% Cashback Credit Cards

Cashback rewards cards give you an easy, straightforward way to save on everyday purchases. You want to save as much money as possible, and the best way to do so is with a credit card that gives you 5% cashback. However, these types of cards have restrictions and might call for a little strategizing to ensure you get the most out of your rewards. Luckily, the cards below can make it easier. Check out US News My Money’s top picks for the best 5% cashback cards.

Best Overall Cashback Card

Chase Freedom Flex

Annual fee: $0

Credit score requirements: Good to Excellent (670 – 850)

Intro purchase APR: 0% for 15 months

Regular APR: 14.99% – 23.74% (variable)

Penalty APR: None

Balance transfer fee: $5 or 5% of each transfer, whichever is more

Cash advance fee: $10 or 5% of each transaction, whichever is more

Foreign transaction fee: 3%

 

The Chase Freedom Flex credit card offers new cardholders a $200 bonus for spending at least $500 within three months after opening an account. You can also enjoy 5% cashback on the first $1,500 you spend in combined spending categories every quarter (activation required). Categories change each quarter, so there’s always a chance to maximize your rewards.

You can also earn 5% whenever you book your travel plans with Chase, plus 3% on dining and drugstore purchases and 1% on everything else. Since there’s no annual fee, you can keep more of your rewards to yourself. There is no minimum amount to redeem your rewards, which never expire for the life of the account.

 

Best Travel Credit Card

Chase Sapphire Preferred

Annual fee: $95

Credit score requirements: Good to Excellent (670 – 850)

Regular APR: 15.99% to 22.99% (variable)

Penalty APR: None

Balance transfer fee: $5 or 5% of each transfer, whichever is more

Cash advance fee: $10 or 5% of each transaction, whichever is more

Foreign transaction fee: None

 

With the Chase Sapphire Preferred, you’ll receive 60,000 bonus points when you spend a minimum of $4,000 on new purchases within three months after opening the account. And if you redeem your rewards with the Chase Ultimate Rewards portal, you can enjoy a $750 value. In addition, you can get up to $50 in statement credits good for supermarket purchases.

Cardholders can earn double the points on all travel and dining purchases, as well as qualifying delivery and takeout services. Plus, you can earn one point for every dollar on everything else. With the Chase Pay Yourself Back program, you can get 25% more value from your points when you exchange them for statement credit for current purchases in qualifying spending categories.

Another benefit that comes with this card is one year of unlimited free DashPass deliveries and discounted service charges on qualifying orders of $12 or more. You must activate by December 31, 2021, to qualify.

Lastly, from now until April 30, 2021, you can get double the points on the first $1,000 you spend on groceries each month, including qualifying delivery and pick-up services.

 

Best Everyday Cashback Card

Discover it Cash Back

Annual fee: $95

Credit score requirements: Good to Excellent (670 – 850)

Intro purchase APR: 0% for 14 months

Regular APR: 11.99% to 22.99%(variable)

Penalty APR: None

Balance transfer intro APR: 0% for 14 months

Balance transfer fee: 3% of each transfer, up to 5%

Cash advance fee: $10 or 5% of each transaction, whichever is more

Foreign transaction fee: None

 

When you sign up for the Discover it Cash Back, you’ll automatically qualify for the Unlimited Cashback Match program. After one year, Discover will double your cashback rewards, meaning you could turn $150 into $300. This program is only available for your first year. 

As for its cashback rewards, you can enjoy 5% back on the things you buy every day in qualifying spending categories, including online shopping, the grocery store, dining, gas stations, PayPal checkout, and more. There’s a quarterly limit, but you can continue to earn 1% cashback on everything else after you reach it (no activation required). 

Your rewards never expire, and you can exchange your cashback at any point. Discover offers many consumer protections and is accepted by almost every merchant in the US.

 

Source
  • US News Staff. “Best 5% Cash Back Cards.” U.S. News & World Report, U.S. News & World Report, 8 Jan. 2021, creditcards.usnews.com/five-percent-cash-back.
Ian Schindler