The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate credit cards to write unbiased product reviews.

The information for the following product(s) has been collected independently by Business Insider: Citi® Double Cash Card, Chase Freedom Flex®, Wells Fargo Attune℠ Card. The details for these products have not been reviewed or provided by the issuer.

• I got the Discover it® Cash Back credit card this summer to earn up to 5% on everyday expenses.
• I wanted a no-annual-fee credit card that earned cash-back rewards on every dollar I spent.
• Some credit cards earn a fixed amount per dollar spent, while others earn more on certain expenses.

I got a new cash-back credit card this August and have earned more than $100 from it so far.

I specifically chose the Discover it® Cash Back card because it earns 5% cash back on bonus categories that change every three months (from January 1 to March 31, 2025, earn 5% cash back at restaurants, home improvement stores, and select streaming services on up to $1,500 in purchases after enrollment, then 1%).

With dozens of cash back credit card options on the market, I suffered serious analysis paralysis when evaluating the pros and cons of cash-back credit cards. Fortunately, I have reviewed credit cards for more than nine years, so I knew what benefits I was looking for (and what I was willing to forego).

These are the factors I considered in case you're also looking for a new card.

Cash back credit card types

There are two main types of cash back cards: those that earn a fixed rate no matter what you buy, and those that earn extra points on specific expenses.

Flat-rate cash back

If you value the KISS rule of Keeping It Simple, Stupid, you may want to pick a flat-rate credit card to use for all of your purchases.

Good examples of flat-rate cash back credit cards include the Wells Fargo Active Cash Card and the Citi Double Cash Card, both of which appear on our list of the best 2% cash back credit cards.

These cards earn a respectable return on every dollar you spend whether you're paying for daycare, buying dinner, or shopping for a flight.

I personally wanted a higher rate of return, and I was willing to work harder to earn it.

Bonus points on specific categories

If you enjoy urban sports like extreme couponing, you may find yourself more drawn to credit cards that earn bonus rewards on specific spend categories. For example, the Blue Cash Preferred® Card from American Express is one of the best credit cards for buying groceries because it earns up to 6% on your first $6,000 spent at U.S. supermarkets each year (then 1% back) — but it only earns 1% on most other expenses except for on U.S. gas stations and transit purchases which earn 3% cash back. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

Most cards in this category earn extra points on common household expenses such as streaming services, drugstores, utilities, and dining out.

Avoid cards that reward purchases you don't often make, since you'll get more value from a credit card that better fits your habits. If you don't eat out very often, for example, you probably shouldn't get a cash back credit card that primarily rewards restaurant expenses.

5% rotating-bonus categories

Rotating-bonus credit cards are a specific subset of cash back cards, where cardholders earn 5% cash back on select expenses that change every three months.

The best-known rotating-bonus credit cards are my new Discover it Cash Back and the Chase Freedom Flex®, which I also have in my wallet. Each of these cards earn 5% back on up to $1,500 on eligible expenses each quarter, so I can earn up to $75 per card, four times a year, on bonus categories (with the Discover it Cash Back I earn 5% cash back at restaurants, home improvement stores, and select streaming services, January 1 to March 31, 2025, on up to $1,500 in purchases after enrollment, then 1%).

In case you were wondering: I keep both cards because they earn 5% back on different categories each quarter (then 1%), doubling my chances to earn extra rewards on everyday expenses. Since they don't have annual fees, it doesn't cost me anything to keep these cards open.

You can find the Discover cash back calendar here, and the Chase Freedom card quarterly bonus categories calendar here.

What I needed from my cash-back credit card

When researching my latest acquisition, I evaluated my primary expenses to see where I needed my card to do the most heavy lifting. Like most people, my biggest living expenses include:

1. Housing such as rent or a mortgage
2. Groceries
3. Transportation such as public transit or gas/EV charging
4. Utilities such as electricity, water, gas, trash, and more
5. Healthcare such as medical copays, prescriptions, drugstore expenses, and more
6. Dining out including restaurants, takeout, food delivery, and more
7. Travel including flights, hotels, rental cars, and more
8. Entertainment such as concerts, sports games, streaming services, and movies

Don't settle for less than 1.5% cash back

No matter which cash-back card you choose, make sure it earns more than 1% back per dollar spent. There are too many valuable cards on the market — even without annual fees — that offer great returns for you to settle on a credit card that doesn't generously reward you for spending with it.

My most important cash-back card benefits

Cash back credit cards can be much more versatile than travel rewards credit cards because they're so straightforward to use.

These common traits that were available on all of the cash-back credit cards I considered:

• No annual fee
• Easy reward redemptions
• 0% intro APR
• Purchase protection and extended warranty benefits

No annual fees

I'm not opposed to paying for credit cards that earn their keep. I have The Business Platinum Card® from American Express which has a whopping $695 annual fee (), but that cost is worth it to me for the benefits I get out of the card.

However, I knew I didn't want a cash back card with annual fees because its core value lies in paying me back a small portion of the money I spend. Therefore, there's no point in paying for a card that's designed to pay me — and that's why most of the best cash-back credit cards do not charge annual fees.

You'll generally find annual fees on good credit cards that offer benefits you'd otherwise pay good money to enjoy. (You'll also find annual fees on mediocre cards that aren't worth their keep.)

Credit cards with airport lounge access, for example, can save you hundreds of dollars on food and drink each year, while the best credit cards with Global Entry and TSA PreCheck statement credits can save you time and hassle when going through airport security.

Pro tip: If you do consider a cash-back credit card with an annual fee, make sure the overall value you'll get from that card greatly exceeds the amount you pay for it.

Easy reward redemptions

I chose the Discover it Cash Back because I liked how easy it is to redeem my rewards. Since each point is worth 1 cent, I can use my cash-back rewards to pay down some of my card's statement balance and know exactly how much value I'm getting from my rewards.

While I'm a fan of the Discover mobile app, this benefit isn't exclusive to my card: Most cash-back credit cards offer the ability to redeem rewards as statement credits. Cash [back] is king, and you shouldn't consider any card that doesn't allow you to pay off what you owe with what you've earned.

Some credit cards also allow you to redeem rewards for gift cards, or use them to pay off Amazon shopping balances. As long as your points are worth at least 1 cent apiece, this isn't a terrible idea as long as the retailers you choose are companies you'd shop from regardless.

Pro tip: Some issuers only allow cardholders to redeem rewards on Amazon at a discounted rate, sometimes for as little as 0.7 cents per point. If you find yourself in this situation, you're better off paying for your Amazon purchase outright and then using your rewards to pay off the charge on your statement at a redemption value of 1 cent per point.

0% interest period

The Discover it Cash Back also stood out to me for its 0% intro APR for 15 months on purchases and balance transfers, then 18.49% - 27.49% variable APR (rates as of 12/12/2024). I generally pay off all of my credit card balances in full, but occasionally take advantage of promotions like this one to let my cash earn some interest in a high-yield savings account for a year before paying off what I owe when my 0% intro APR expires.

Some cash back credit cards offer new cardholders this benefit, which can be really helpful if you have large expenses like furniture, medical bills, or property taxes on the horizon. Whether you need a little extra breathing room to save enough money or just want to invest your spare cash, having a few months of no interest can be really helpful for anyone.

Purchase protection benefits

My Discover it Cash Back credit card actually doesn't offer purchase protection or extended warranty benefits, so I pay for tech gadgets and higher-value products with some of my other credit cards.

My other cash back credit card, the Chase Freedom Flex, does offer generous Chase purchase protection and an extended warranty. When I buy an eligible product with this card, Chase covers my purchase if it gets damaged or stolen within the first 120 days after purchase, for up to $500 per claim and $50,000 per account.

The Chase Freedom Flex even comes with trip insurance: If I pay for a flight or a hotel room using this card but have to cancel or shorten my trip because of illness or severe weather, I can file a claim for reimbursement on nonrefundable prepaid expenses: up to $1,500 per person and $6,000 per trip.

Other cash back credit card benefits to look for

Instant approval and virtual card number

You can begin using some credit cards within seconds of being approved.

My Discover it Cash Back credit card offered instant approval and a virtual credit card number for immediate use while I waited for the physical card to arrive in the mail.

I didn't need to use the card right away, but this feature can be particularly useful if you have a big expense coming up right away and want to take advantage of a 0% intro APR period (then 18.49% - 27.49% variable APR (rates as of 12/12/2024)) or start earning your welcome bonus a little bit sooner.

Welcome bonus

Speaking of welcome bonuses, these are incentives offered by credit card issuers that make it a little more enjoyable to open a new credit card. Credit card welcome bonuses are offers that typically come in the form of cash back or points earned after spending a certain amount within a number of days or months after opening the new card.

There are a few variations to this formula: With some cards, you can earn the bonus after just a single purchase. And on my new Discover it Cash Back, I'll get the famous Discover Cashback Match™, which effectively doubles the total amount of cash back I earn in my first year of card ownership.

Cashback Match™ is an unlimited benefit for new card members like me in their first year only, where Discover automatically matches all the cash back earned after I reach my one-year card anniversary. Even if I don't earn another dime from today forward, I'll end up with $215.68 next year: my current $107.84 ×2. Not bad at all for a no-annual-fee credit card.

Maximizing rewards with other bank products

We've already discussed the bonus rewards offered on cards like the Bank of America® Customized Cash Rewards Credit Card, which rewards cardholders who also invest their money with Bank of America. But there are many other ways to maximize your cash-back credit card rewards.

Cash back credit cards from large issuers often earn rewards that can be combined with premium travel rewards credit cards for even more value.

For example, my Chase Freedom Flex earns cash back in the form of Chase Ultimate Rewards points, which can only be redeemed for gift cards or cash back on their own. But if I also get a Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, or Ink Business Preferred® Credit Card, I can transfer my cash back rewards to one of these cards, then use my points to book luxury flights or hotel stays with Chase Ultimate Rewards points transfer partners.

Chase isn't the only major bank that offers credit cards with reciprocal rewards — American Express, Citi, Capital One, and Wells Fargo all offer multiple credit cards that work well together for additional value.

The cash-back credit cards I considered before choosing the Discover it Cash Back

I consulted our guide to the best cash back credit cards to find an option that worked well with my spending habits and lifestyle. I don't mind doing a little extra legwork for bigger rewards, which is probably why I could earn more than $100 in a few short months.

The other two cash back cards I considered in addition to the Discover it Cash Back are the Wells Fargo Attune℠ Card and the Citi® Double Cash Card.

Wells Fargo Attune

The Attune℠ Card earns 4% on many bonus categories including gyms, pet supplies, and environmentally friendly transit, and 1% on everything else. Like the Discover it Cash Back, the Attune℠ Card also offers new cardholders a 0% interest period. The Attune℠ Card offers 0% intro APR for 12 months from account opening on purchases followed by a 20.24%, 25.24%, or 29.99% variable APR.

I ultimately decided against this card because I don't spend enough across the bonus categories to maximize my cash rewards. If I ever get a dog again, however, this card will likely be one of my first post-pet acquisitions.

Citi Double Cash

The Citi Double Cash Card is a classic cash back card that earns exactly what the name suggests. You'll earn 1% back per dollar when you make a purchase, and 1% back per dollar when you pay it off, for a total of 2% cash back on everything. It also comes with a 0% intro APR on balance transfers for 18 months, then a 18.24% - 28.24% Variable APR.

While this no-annual-fee credit card has been popular with millions of people through the years, the Citi Double Cash Card just wasn't what I wanted this time around.

Since I already have a different card I use to earn 2% back on non-bonus purchases, I'm willing to do a little extra legwork to earn a better rate of cash back. That's why I turned down this fan favorite for the Discover it Cash Back.

My Discover it Cash Back's limitations

My new cash back credit card is pretty flexible. Like many of the best credit card issuers, Discover doesn't require me to earn a certain amount of rewards before allowing me to redeem them for statement credits. But some banks do, so make sure your card of choice doesn't limit you to only using your rewards once you've earned a lot of points.

My cash back credit card also isn't great for travel protection. As I mentioned earlier, the Discover it Cash Back doesn't offer travel benefits, so I can't file for reimbursement if my flight gets delayed and I have to buy last-minute toiletries to get me through an unexpected night in the airport. Even my Chase Freedom Flex, which offers generous reimbursement for interrupted travel, doesn't pay me back if my luggage is lost, stolen, or damaged by an airline.

Instead, I rely on my Sapphire Preferred Card for travel protection. While I never want to lose my bags, I feel much better knowing that I might be reimbursed if that happens to me for a covered reason.

The reasons I choose my cash back credit card will differ from why you choose yours. But hopefully my reasoning helps you better understand what you want out of your next card.