A middle-aged couple on a sofa compare credit card reward offers on their laptop.

Compare Credit Cards With the Highest Levels of Cash Back Rewards

7 min read

Last Updated: December 19, 2024

Table of contents

Key Takeaways

From travel expenses to groceries, making purchases with the right rewards credit card can earn cash back on what you spend.
Knowing your rewards rate and type can help you strategize to get more cash back rewards.
A credit card with simple cash back rewards redemption rules can make it easier to maximize your rewards.

A cash back rewards credit card can come in handy, allowing you to earn rewards on purchases you have to make anyway. If you have the right card, your cash back rewards can really stack up on both big-ticket items and smaller purchases. But all reward programs are not created equally because differing rates, rules, and maximums may apply. There are a few things to consider when choosing the best cash back card and getting the most cash rewards.

What determines the highest cash back credit card rewards you can get?

Depending on the kind of cash rewards credit card, several factors may influence the amount of cash back rewards you can earn and redeem.

To maximize your cash back rewards, you can compare different credit cards for their introductory promotions, cash back rewards maximums, and fees.

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Tiered rewards

One category of cash back rewards groups awards into tiers. Some cash back rewards cards offer flat-rate rewards for everyday purchases and a higher cash back rewards rate for purchases in bonus cash back categories. For example, with the Discover it^® Chrome Credit Card, you can earn 2% Cashback Bonus^® at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.¹ This may be the best credit card for you if you make regular purchases in eligible categories.

Rotating category rewards

Some cards have a tiered rewards structure with bonus rewards categories that change throughout the year. For example, you may be eligible for 5% back on your gym membership in one quarter and 5% back on gas in another quarter. You’ll need to remember which bonus categories are current but these cards can offer some of the highest bonus rewards rates.

The Discover it^® Cash Back Credit Card lets you earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate.

Flat-rate rewards

A flat-rate cash rewards credit card offers a set percentage back on typically all purchases. Flat rates tend to be lower than the percentages earned through bonus category rewards. On the plus side, there may not be a limit to the amount of cash back rewards you can earn with this kind of rewards card.

You might consider this card if you prefer an everyday card with convenience. With flat-rate cash back rewards cards, you don't have to track which category currently offers the most bonus rewards. It may also be helpful if you have less than predictable spending habits, ensuring you earn cash back rewards with a single reward rate that applies to purchases at any time of the year.

Introductory bonuses

Along with low intro APRs (annual percentage rates), some credit card issuers offer introductory rewards, allowing cardmembers to earn more rewards during the promotional period specified in their card agreement.

Take Discover Cashback Match, for example. We’ll automatically match all the cash back you’ve earned at the end of your first year. There is no limit to how much we’ll match.²

Cash back rewards maximums

Some rewards credit cards might limit the number of rewards you can earn over a particular period or in a certain bonus category. For example, you might be able to earn cash back rewards on up to a maximum of $1,500 in purchases in a specific category.

Maximums may influence what card you pay with to get the highest rewards. A high rewards rate with a low maximum might not give you as many cash back rewards as a card with a lower rate but unlimited cash back.

Consider fees when choosing a cash back rewards credit card

Some credit cards may require an annual fee or charge foreign transaction fees. Discover has no annual fee on any of our cards.

When considering a rewards credit card that charges an annual fee, consider whether those fees will offset any cash rewards you might earn.

How easy is it to redeem your cash back rewards?

The methods of redeeming your rewards can vary depending on the credit card company and the type of cash back rewards card you choose. Because certain restrictions can limit your cash back rewards potential, it’s a good idea to check redemption rules when shopping for a credit card that will give you the most cash back rewards.

Did you know?

Some rewards expire, which reduces the amount of cash back rewards you can get if you fail to redeem before the deadline. With Discover, rewards never expire.³ And Discover has no minimum balance of money spent or rewards earned before you can redeem. You can redeem any amount, any time.³

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Some common ways to redeem credit card rewards can include trading your rewards for a gift card, statement credit, or for certain travel expenses. You might even have the option to use your rewards for an eligible purchase online or to make a charitable donation. Typically, you can check your cash back balance and redeem certain rewards through your mobile banking app or online banking.

How to get the highest level of cash back rewards from your credit card

There are a few things to remember if you want to get the highest amount of cash back rewards from your credit card. With terms that offer unlimited cash back rewards, you may want to make it your everyday card. The more you use it, in that case, the more you can earn. For rotating rewards and bonus rewards, you’ll want to ensure you’re using your card for the specific bonus category at the correct time while monitoring your spending up to any limits.

Not all rewards offer the same value. Depending on your needs and spending habits, you may want to compare the value of your cash back rewards based on how you’re cashing them in. For example, the cash amount for a statement credit might not be as high as a gift card. On the other hand, the statement credit may help you avoid interest payments by paying down your balance—saving you more than using a gift card.

Will you qualify for a card with the highest level of cash back rewards?

Some credit cards with high levels of cash back rewards require a good credit score to qualify. But you may still qualify for a cash back rewards credit card with little to no credit, like a secured credit card.

For example, there’s no credit score required to apply for a Discover it^® Secured credit card. ⁴ If you get approval for a secured credit card, you’ll provide a deposit in the amount the card issuer approves you for. This deposit is collateral for your credit limit.

There are many opportunities to get cash back credit card rewards on your usual spending. While collecting and redeeming rewards may seem complicated, understanding how different rewards programs work will help you choose the best credit card with cash back rewards for your situation and get the most out of every cent.

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