Cash back credit cards are a great way to earn rewards on your everyday purchases. In this article, we will discuss the best credit cards offering 5% cash back. These cards can be a valuable tool to help you maximize your savings, but it’s important to understand how they work and whether they suit your spending habits. So, let’s get into the details!
How do 5% cash back credit cards work?
Credit cards that offer 5% cash back usually have specific categories where you can earn this high payout. For example, you could earn 5% cash back on your gas, utility or grocery purchases. The key is to choose a card that offers high payouts in categories that match your spending habits. If you primarily eat out, a card that offers 5% on dining might be a better option for you than a card that offers 5% on groceries.
It’s also important to note that most 5% cash back cards have predefined categories chosen by the card provider. Although some cards allow you to choose your categories, you will generally need to log in and make your selections every three months. Make sure the categories chosen by the card provider match your spending habits to maximize your earnings.
Additionally, most 5% cash back cards have a limit or “cap” on the amount of cash back you can earn. For example, you could get 5% cash back on groceries, but only on the first $1,500 of purchases each quarter. Be sure to consider these limitations when deciding which card is best for you.
The Best Credit Cards for 5% Cash Back
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US bank cash + credit card: This card allows you to choose two categories in which you will earn 5% cash back. Some popular options include utilities, department stores, and fast food. The 5% cash back is capped at $2,000 in purchases per quarter. The card also offers 2% unlimited cash back in a category of your choice and 1% cash back on all other purchases.
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Chase Liberty Flex: This card offers 5% cash back on rotating categories chosen by Chase. The categories change every quarter, so make sure they match your spending habits. The 5% cash back is capped at $1,500 in purchases each quarter. The card also offers 3% cash back on restaurants and pharmacies, and 1% cash back on all other purchases.
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Find out Cash Back: This card also has rotating categories to earn 5% cash back. Make sure the categories Discover chooses match your spending habits. The 5% cash back is capped at $1,500 in purchases each quarter. Unlike the previous two cards, Discover it Cash Back does not offer additional cash back categories.
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Amazon Prime Rewards Visa: This card is perfect for frequent Amazon shoppers. It offers 5% cash back on Amazon and Whole Foods with a Prime membership. It also offers 2% cash back at restaurants, gas stations and pharmacies. There is no cap on the cash back rewards you can earn with this card.
When choosing a credit card, consider your spending habits and the categories that correspond to them. Also pay attention to cash back earning caps and any additional benefits the card offers, such as bonus offers, no annual fee, or 0% APR introductory periods.
By understanding how 5% cash back credit cards work and choosing the one that best suits your needs, you can maximize your savings and earn valuable rewards on your everyday purchases. Good shopping!
