When it comes to maximizing your purchases, cashback rewards cards are at the top of the list. These cards give you a percentage of what you spend back in cash—seemingly simple but highly effective! However, with so many options available, choosing the best cashback card can be a challenge. In this comprehensive review, we’ll compare some of the top cashback cards, including the Bank of America Travel Rewards card, to determine which one offers the best return on your spending.
What is a Cashback Credit Card?
Before diving into individual reviews, it’s important to understand what a cashback card is. Cashback credit cards are a type of rewards card where you earn back a small percentage of the money you spend on purchases. Whether you’re shopping for groceries, booking flights, or paying utility bills, a cashback card can help you accumulate savings effortlessly!
Some cards offer flat-rate cashback on every purchase, while others provide tiered rewards, with higher cashback on specific categories such as travel, dining, or fuel. As you’ll see, the Bank of America Travel Rewards card and others offer unique features that may or may not fit your spending habits.
1. Bank of America Travel Rewards Card
If you’re a frequent traveler, the Bank of America Travel Rewards card might be your go-to. While it technically isn’t a “pure” cashback card, the rewards can be redeemed for travel-related expenses, making it a favorite for globetrotters. What makes this card stand out is its flat 1.5 points per dollar spent on every purchase. The card has no annual fee and no foreign transaction fees—ideal for those traveling overseas.
You can compare the Bank of America Travel Rewards card with other travel-specific cards in this comprehensive travel rewards guide, which dives deeper into redeemable benefits and travel perks. Another perk of this card is its introductory offer of 25,000 points when you spend $1,000 in the first 90 days, which is worth a $250 statement credit towards travel.
This card is perfect for frequent travelers who want a straightforward rewards system. In comparison to other cashback cards, it doesn’t require you to track rotating categories or limits—ideal for someone who prefers simplicity.
2. Chase Freedom Flex
A popular contender in the cashback space is the Chase Freedom Flex. This card offers 5% cashback on rotating categories each quarter (like groceries, gas, or dining), 3% on dining and drugstores, and 1% on all other purchases. The flexibility in its rewards structure makes it a top choice for those who can track spending categories. Plus, the 5% bonus categories offer significant potential to maximize savings if you align your spending with the rotating categories.
In terms of additional benefits, Chase Freedom Flex provides purchase protection, travel insurance, and even cell phone protection. You can check out a full review of the Chase Freedom Flex in this detailed breakdown.
3. Citi Double Cash Card
The Citi Double Cash card is one of the best options for people who like simplicity. You earn 2% cashback on everything—1% when you buy, and another 1% when you pay off your balance. No need to worry about categories or quarterly enrollments. It’s a straightforward card, and for the average spender, this could mean more savings in the long run.
One standout feature of the Citi Double Cash is the ability to convert cashback into Citi ThankYou points. This makes it an ideal choice for people who want flexibility in how they use their rewards. If you want to learn more about how the Citi Double Cash compares to travel-specific cards like Bank of America Travel Rewards, this Citi Double Cash vs. Travel Rewards comparison is useful.
4. Discover it® Cash Back
Another excellent option is the Discover it® Cash Back card, known for its 5% cashback on rotating categories, similar to the Chase Freedom Flex. One unique benefit is that Discover matches all the cashback you earn at the end of your first year, essentially doubling your rewards. Imagine earning 10% back on rotating categories—this could make a huge difference!
This card also stands out for its lack of foreign transaction fees and no annual fee, making it a good contender for international travelers or those who want to avoid extra costs. Discover’s customer service is also highly rated, which is a bonus for users who value excellent support. Discover’s cash match program makes this card stand out, and you can read a full comparison with other rotating category cards in this comprehensive article.
How to Choose the Best Cashback Card
When deciding on the best cashback card for your wallet, it all boils down to your spending habits. Here are a few things to consider:
- Spending Categories: Some cards like Chase Freedom Flex and Discover it® offer higher cashback in rotating categories, which can be highly rewarding if you’re able to align your spending with those categories. Meanwhile, cards like Citi Double Cash offer a flat rate that may suit more consistent spenders.
- Travel vs. Cashback: If you’re someone who travels frequently, you might get more value from a travel rewards card like Bank of America Travel Rewards. You can use the points to cover travel expenses, and no foreign transaction fees make it a good choice for international travelers.
- Annual Fees and Interest Rates: Most cashback cards mentioned, including the Bank of America Travel Rewards, have no annual fees. However, it’s essential to look at interest rates if you plan on carrying a balance. Cards like Citi Double Cash offer great rewards, but interest rates can be high, reducing the overall benefit.
To better understand the pros and cons of no-annual-fee cards, see this detailed guide on annual fee-free credit cards.
The Best Card for Different Types of Shoppers
- Frequent Travelers: Bank of America Travel Rewards is a winner for those who travel often, with 1.5 points per dollar on every purchase, and no foreign transaction fees. Travelers can redeem their points for flights, hotels, and other travel expenses, making it a solid choice if you value travel perks.
- Maximizing Rotating Categories: Chase Freedom Flex and Discover it® offer outstanding 5% cashback in different categories. However, you’ll need to track and activate the categories each quarter. If you’re disciplined about monitoring these rewards, you can enjoy significant savings, especially in high-spending areas like groceries or gas.
- Simple and Flat Rewards: The Citi Double Cash card is excellent for those who want to earn cashback without managing categories or rotating schedules. With a simple 2% cashback on all purchases, it’s one of the best cards for those who prioritize simplicity and consistency.
Pros and Cons of Each Card
To give you a quick snapshot of each card, here’s a summary of the pros and cons:
Bank of America Travel Rewards
- Pros: No annual fee, no foreign transaction fees, 1.5 points per dollar on all purchases.
- Cons: Rewards are only redeemable for travel-related expenses.
Chase Freedom Flex
- Pros: 5% cashback on rotating categories, strong additional benefits like cell phone protection.
- Cons: Requires active management of categories and enrollment each quarter.
Citi Double Cash
- Pros: Flat 2% cashback on all purchases, no need to track categories.
- Cons: Higher interest rates if you carry a balance.
Discover it® Cash Back
- Pros: Cashback match at the end of the first year, no annual or foreign transaction fees.
- Cons: Rotating categories require activation, cashback caps on certain categories.
Conclusion
When it comes to choosing the best cashback card, it ultimately depends on how you spend. Frequent travelers will appreciate the value and flexibility of the Bank of America Travel Rewards card. On the other hand, if you prefer cash back without the hassle of managing rewards categories, the Citi Double Cash is your best bet. For those willing to monitor rotating categories, Chase Freedom Flex and Discover it® are top contenders.
Ready to apply for one of these cards? Check out full Bank of America Travel Rewards guide or explore this comparison between cashback and travel rewards cards.
