Cash-back cards needn’t be boring. They might not have the glamor of travel rewards or the prestige of descriptors like “platinum” or “diamond,” but they hold a coveted spot in many wallets. Rewards are easy to earn and easy to use. Plus, with these 2023 cash-back credit card trends, there’s even more to be excited about with this type of rewards card.
Earn 2% With No Annual Fee
For years, flat-rate cards earned at 1% everywhere before eventually inching up to 1.5% cash back on all purchases. Now, 2% cash-back credit cards are relatively easy to find.
One of the best cash-back cards is the Wells Fargo Active Cash® Card: you’ll earn unlimited with no annual fee. It’s set apart from other 2% cards since it also earns a welcome bonus of . A welcome bonus of any size is rather unusual for a 2% cash-back card.
The Citi® Double Cash Card is another long-time favorite effectively offering uncapped 2% cash back with no annual fee (specifically, you’ll earn ). Or, try the PayPal Cashback Mastercard®* which is even more rewarding on some types of purchases. It earns .
Bonus Rewards on More Types of Purchases
If you’re not married to the idea of flat-rate earnings, you can earn even higher cash-back rates on certain types of purchases. Some no-annual-fee cards offer 5% cash back on select categories while cards with a modest annual fee may offer even higher.
Potentially very rewarding, cards with rotating 5% categories offer the chance to earn strong rewards on purchase types that vary by quarter. The Chase Freedom Flex℠ is an appealing version of this type of card. It earns . Similarly, the Discover it® Cash Back earns .
If keeping track of changing categories is too much hassle for you, consider instead the Citi Custom Cash℠ Card which earns . To earn at elevated rates in multiple categories, choose the Blue Cash Preferred® Card from American Express (Terms apply. See rates & fees). It has a $0 intro annual fee for the first year, then $95 annual fee, but offers strong rewards in categories that appeal to most households. You’ll earn .
Enjoy Statement Credits and Extra Perks
Premium credit cards have bundles benefits and credits for their cardholders, but now everyday cash-back cards are doing the same. We’re starting to see extras being packed into your card benefits and we hope to see even more of this in 2023.
For example, the Chase Freedom Unlimited® is, at the time of writing, offering complimentary three-month memberships to both DoorDash DashPass and Instacart+. To sweeten the Instacart deal, they also throw in a $10 statement credit once per quarter through July 31, 2024 when you use your enrolled card to make a qualifying purchase through Instacart. The card also offers 5% cash back on Lyft rides for even more earnings.
That’s far from the only card offering credits or discounts. All American Express cards are eligible for Amex Offers. These targeted offers typically provide statement credits when you enroll and spend a minimum amount of money with a partnering merchant. These can add to huge savings. Recently, we’ve seen offers such as $100 in credits after a $500 purchase with Airbnb or $9 in credit when spending $9 on Paramount+ subscription charges with your card.
Bottom Line
With these cash-back credit card trends, 2023 is shaping up to be the time to hold a rewards card. You’ll enjoy the simplicity of rewards you can understand along with strong earning rates, extra rewards and built-in benefits that add even more value for being a cardholder.
To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.
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