What are the best credit cards for cash back

If you’re a savvy spender, getting the most cash back for your spending is a must. But researching the best card can be a tedious process. 

We’ve sifted out the best rebates so that you don’t have to. The choices below span a variety of different categories and minimum spend requirements. Here’s our list of the best cashback credit cards in 2022:

1. UOB One
2. UOB EVOL
3. HSBC Visa Platinum
4. Citi Cash Back
5. CIMB Visa Signature
6. OCBC Frank
7. OCBC 365
8. Maybank Family & Friends
9. Bank of China Family Card

Overview of the Best Cashback Credit Cards

1. UOB One Card

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UOB One Card

If you can manage the complicated cashback calculations and high minimum spend, the UOB One Card offers up to 10% rebate to those who regularly shop at the participating merchants. Those on a budget are better off with a more versatile card, however.

PROMO: Get S$300 cash credit via PayNow

This is a good card to have since it has one of the highest cashback rates on our list. The caveat here is that you need to spend at least S$2,000 per month to unlock all its goodness.

There are three tiers of cashback for this card:

The tiering system can get complicated at times, so UOB has provided a rebate calculator to help you estimate the cashback you can earn.

Annual Fee: S$192.60 with fee waiver for first year

Eligibility: Minimum 21 years old with at least S$30,000 annual income or S$10,000 fixed deposit collateral

Generally, three kinds of cash-back cards rule the market: flat-rate, tiered-rate and rotating category credit cards.

Flat-Rate Credit Cards

Flat-rate cash-back credit cards earn the same percentage back on your eligible spending, typically anywhere from 1% to 2%, without any spending caps or category restrictions.

Tiered-Rate Credit Cards

Tiered rewards cash-back cards earn different amounts back in different areas of spending. For example, some cards offer elevated rewards on dining or travel and a lower rate on other areas of spending.

Rotating Category Credit Cards

With rotating bonus category cards, you will earn higher-than-average rewards, typically about 5%, on specific areas of spending up to a quarterly maximum. After that, the rewards rate will drop to 1%. All other purchases on the card typically earn 1% cash back. Bonus categories typically change every three months.

Factors to Consider When Choosing a Cash-Back Card

The best cash-back credit card is the one that best fits your lifestyle and spending habits. The right cash-back card for someone else may not be the right cash-back card for you.

Forbes Advisor aims to help you by identifying what each cash-back card is best for, but you should always do the math yourself and consider not only how much cash back you could earn but also how you might use the other card benefits.

After you’ve identified how much you spend in different areas and what other card features could benefit you, you’re ready to compare credit cards and shop for the best one for you. As you compare cards and credit card issuers, there are some things that you should incorporate into your evaluations.

• Fees: Is there an annual fee? How much would you have to spend on the card to earn enough cash back to at least cover the annual fee? How does that compare to a similar card that doesn’t charge an annual fee? What other fees might you have to worry about?
• Annual percentage rate (APR): Credit card interest rates are typically higher than other types of loans. If you don’t think you’ll be able to pay off your credit card in full each month, a credit card may not be the right fit for you. If you want a credit card but don’t think you’ll be able to pay it off, you should pay close attention to how much interest you might incur on purchases and balance transfers. If this sounds like you, you should consider a card with an introductory 0% APR offer or a card that’s good for balance transfers.
• Cash-back rate: Cash-back rates vary from card to card. Consider the areas of your life that you spend the most money in and choose a card that will reward you accordingly.
• Bonus categories: Will you be able to take advantage of the bonus categories? If the card offers 3% on gas and groceries, but you take the train and prefer to dine out then that’s not the cash-back card for you.
• Redemption and rewards: Can you use the cash back the way you want to? Many cash-back cards offer various ways to redeem what you earn, such as statement credit, a check, a deposit into a savings or investment account, discounted travel packages and so on. Some cards are more restrictive than others. Make sure you know how you will be able to redeem your hard-earned rewards.

How To Get Cash Back From a Credit Card

Cashing in on cash back you’ve earned from all those laborious swipes, taps and chip inserts will vary from issuer to issuer, but typically to redeem cash back you’ll make a request using an issuer’s app or website after you’ve logged into the mobile or online banking system. Some accounts redeem cash back automatically. You may be able to choose how your cash back is redeemed: as a statement credit, as a deposit to a qualifying bank account or as a check the issuer will mail to you. Some cash-back cards also allow you to redeem cash back by applying it to purchases.

Pros and Cons of Cash Back Credit Cards

Cash-back credit cards are an excellent way to earn rewards with every qualifying purchase on your credit card. There’s generally no learning curve required and you can claim your rewards with a few clicks in your online account—sometimes they’re even provided as a statement credit automatically. You can also easily calculate your earnings so you know precisely what to expect.

One con of a cash-back credit card is that there’s an upper limit on your earnings. Some other types of credit cards may feature higher earning rates than the typical 1% to 2% on cash back cards, assuming you are willing to put in the effort to learn about the associated points or miles program.

Another con of cash-back cards is that, compared to specialty rewards cards, there are usually fewer built-in benefits. Frequently, cash-back cards focus only on the rewards rather than travel benefits, statement credits toward select purchases or other perks.

Finding the Best Cash Back Card for You

There are many great cash back cards on the market, but the card that will earn you the greatest rewards depends on your spending habits. Before committing to a card, take a look at your budget and see where you spend most frequently. Then choose the card that best fits your lifestyle.

How to Make the Most of Your Cash Back Credit Card

Leveraging multiple cash-back cards can mean earning elevated rewards across multiple bonus categories. For instance, you could earn a card rewarding gas purchases at 3% cash back and another earning 4% cash back on groceries and yet another earning 2% cash back on all other purchases. Where the first two cards likely only reward non-bonus category spending with 1% cash back, you can pair multiple cards to reward the major spending you do across all categories.

Beware: Managing multiple credit card accounts means more responsibility, including more monthly statements, more minimum payments, more fees and more risk of accrued interest. Be careful not to shoulder too much.

Read More: How Many Credit Cards Should I Have?

Alternatives to Cash-Back Credit Cards

Depending on your preferred redemptions, other types of credit card rewards might be more valuable to you.

Cash Back vs. Travel Rewards

Travel rewards, such as airline miles or hotel points, can be strategically redeemed to get outsized value. Every travel program has sweet spots where a single point or mile could be worth five or ten cents each when redeemed strategically. However, this assumes you’re well-versed on the program’s strengths—and have the flexibility to take advantage of them.

Cash back, on the other hand, offers stable value. You don’t have to hunt for the most valuable redemptions and don’t have to worry about getting below-average value. It’s also much simpler and doesn’t require a time investment in order to redeem rewards.

Cash Back Vs. Flexible Bank Points

Many card issuers offer proprietary points instead of traditional cash back. These programs, like Chase Ultimate Rewards or Citi ThankYou points, build in flexibility. When you earn credit card points, you can redeem them as cash back (often, but not always, equivalent to 1%) or you can redeem them for other rewards through the program. A common redemption option is to book travel through the points portal to get 25% more value with every point. You may also be able to transfer points to partnering travel loyalty programs, effectively earning travel rewards.

Once again, cash back is the easiest and most straightforward option. However, credit card points usually have one or more alternate redemption options that are still relatively simple yet provide a greater return. The flexibility of points is their greatest attribute.

To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.
To view rates and fees for Blue Cash Everyday® Card from American Express please visit this page.

*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details.

**Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

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