Can You Get Cash Back With a Credit Card​?

Cash back credit cards reward you for making eligible purchases by giving you back a percentage of what you spend.

Some cards offer a flat cash back rate on every purchase, while others provide different rates depending on the category, like groceries, travel, or dining. Many cards even feature rotating bonus categories that change each quarter. For example, you might earn a higher cash back rate on groceries one quarter and on restaurants or gas stations the next.

However, not every transaction qualifies for rewards. For instance, you probably won’t earn cash back on interest charges, credit card fees, cash advances, or balance transfers, which involve moving debt from one credit card to another. The same goes for unauthorized purchases or spending in certain restricted categories, like gambling-related costs or the purchase of wire transfers or traveler’s checks.

Important: Never overspend on a credit card just to earn rewards. Interest charges can quickly erase any cash back you earn.

Cash back vs. cash advance

Cash back refers to the rewards you earn on your purchases. It’s real money you get back from your card issuer, typically ranging from 1% to 6% of what you spend. This is completely different from a cash advance.

A cash advance involves borrowing money against your credit card’s line of credit. It’s basically a short-term loan from your credit card issuer and can come with significant fees and a higher annual percentage rate (APR) than your card’s regular purchase APR.¹

The appeal of a cash advance is that you can access cash quickly by withdrawing it at an ATM using your credit card. But this cash advance loan typically starts gathering interest right away and is probably not the most affordable way to access funding.

There are different types of cash back cards, with some offering a flat rate on all spending and others offering better rates in certain categories, such as grocery stores and gas stations. Here are a few types of credit cards you might encounter.

1. Flat-rate cash back cards

The most straightforward cash back cards offer a flat earnings rate on all your spending. For example, the Wells Fargo Active Cash^® Credit Card offers 2% back on all purchases.² Similarly, the Citi Double Cash^® Card offers 2% back in all categories – 1% when you make a purchase and another 1% when you pay it off.³

2. Tiered reward cash back cards

Tiered cards offer different rates for different spending categories. Here are some common bonus categories you might see:

• Groceries and supermarkets: Often 3 – 6% back
• Dining and restaurants: Typically 2 – 3% back
• Gas stations: Usually 2 – 3% back on fuel purchases
• Streaming services: Often 3 – 6% back on entertainment subscriptions

Depending on the card and category, you might get a higher rate up to a limit and a lower rate once you’ve spent past that limit. A cash back card with tiered rewards may appeal if you want to maximize your rewards in certain categories over others.

3. Rotating categories cash back cards

Finally, some credit cards offer different rates in select categories that rotate on a quarterly basis. The Discover it^® Cash Back Credit Card earns 5% cash back on purchases in different categories each quarter up to $1,500 in spending. After that, it earns 1% back, plus an unlimited 1% on all other purchases.⁴

Some cards with rotating categories offer higher earnings rates automatically, while others require you to activate your offers. Some also let you choose your bonus categories, like the U.S. Bank Cash+^® Visa Signature^® Card. With this card, you can choose from a list of categories each quarter to activate 5% back on up to $2,000 in combined spending.⁵

These cards have a more complex earnings system, so they may require more attention from you to make the most of your rewards each period.

You can redeem your cash back rewards on a credit card in several ways, though the options may differ by card. Here’s how to use cash back on a credit card:

1. Request direct deposit into your bank account. You can often transfer your cash back into a linked bank account.
2. Ask for a paper check. Some credit card companies can mail you a paper check, though this option is typically slower than direct deposit.
3. Redeem your rewards as a statement credit. You may be able to apply your cash back to the balance on your credit card statement.
4. Exchange your cash back for gift cards. Some credit card issuers let you redeem your cash back for gift cards at popular retailers. Make sure your points will still be worth as much as they would be if you redeemed them for cash. Otherwise, this option may be less valuable than it seems.
5. Use your rewards to make purchases online. You may also be able to use your points when checking out at certain retailers or booking travel through your credit card company’s travel portal.

A cash back credit card may be a worthwhile addition to your wallet since it can earn you money back on purchases you already make. Here are the steps you can take to get a cash back credit card:

Check your credit score

Most cash back cards require you to have good or excellent credit. If your score is not in this range, you may want to improve your credit before applying for a cash back card.

Compare your options

There are different kinds of cash back cards, so review the rewards structure carefully to see which would best fit your spending habits. If you’d like to maximize your earnings in certain categories, like groceries, restaurants, or gas, a card with tiered rewards or rotating categories might be a smart choice. A flat-rate cash back card could be the better option if you’d prefer a more hands-off approach where you don’t have to think about differing rates.

Fill out an application

Submit your application on the provider’s website to apply for a cash back card. You’ll be asked for your personal details, such as your name, address, income, and employment information. After applying, the company may run a hard inquiry on your credit, which is a review of your credit history that can temporarily affect your score.

Applying online can sometimes result in an instant decision, and you may receive your new card in the mail in one to two weeks. For a closer look at the process, head to our guide on how to apply for a credit card in seven easy steps.

Getting cash back with a credit card is one of the simplest ways to earn money on purchases you’re already making. Whether you choose a flat-rate card for simplicity or a tiered card to maximize specific categories, the key is finding one that matches your spending habits and paying off your balance in full each month.

If you don’t qualify for a cash back card yet, focus on building your credit first. Every step you take toward improving your credit score gets you closer to earning those valuable rewards.