Best Cash-Back Credit Cards Of November 2023 – London Reviews

Depending on your preferred redemptions, other types of credit card rewards might be more valuable to you.

Cash Back vs. Travel Rewards

Travel rewards, such as airline miles or hotel points, can be strategically redeemed to get outsized value. Every travel program has sweet spots where a single point or mile could be worth five or ten cents each when redeemed strategically. However, this assumes you’re well-versed on the program’s strengths—and have the flexibility to take advantage of them.

Cash back, on the other hand, offers stable value. You don’t have to hunt for the most valuable redemptions and don’t have to worry about getting below-average value. It’s also much simpler and doesn’t require a time investment in order to redeem rewards.

Read more: Best Travel Credit Cards of 2023

Cash Back vs. Flexible Bank Points

Many card issuers offer proprietary points instead of traditional cash back. These programs, like Chase Ultimate Rewards or Citi ThankYou points, build in flexibility. When you earn credit card points, you can redeem them as cash back (often, but not always, equivalent to 1%) or you can redeem them for other rewards through the program. A common redemption option is to book travel through the points portal to get 25% more value with every point. You may also be able to transfer points to partnering travel loyalty programs, effectively earning travel rewards.

Once again, cash back is the easiest and most straightforward option. However, credit card points usually have one or more alternate redemption options that are still relatively simple yet provide a greater return. The flexibility of points is their greatest attribute.

Less Than a Quarter of Americans Are Willing To Pay Annual Fee Over $50

It’s not uncommon for credit cards to charge annual fees of $95 or more. That’s how they can afford to include perks like free hotel night certificates, statement credits toward partnering brands or elevated earning rates. When you actually use those benefits, it’s not hard to be money ahead compared to the annual fee you paid.

However, most Americans shy away from paying annual fees. A survey conducted by OnePoll for London Reviews showed that nearly half of respondents don’t want to pay a fee at all, regardless of the travel benefits offered. Those willing to pay a fee still shy away from anything over $49 per year.

There can obviously be sticker shock when seeing annual fees, and on cash-back cards you may be able to get away without paying for one at all. However, it’s always worth doing the math: in some cases, a card’s earning rates or benefits could outweigh the out-of-pocket cost in your personal circumstances, making a card with an annual fee a reasonable alternative after all.

Bottom Line

Cash-back cards generally fall into one of three categories:

• Flat-rate rewards, such as 2% cash back on every purchase.
• Rotating-category rewards, such as 5% cash back on a selection of purchase categories that update every quarter, then 1% cash back on remaining purchases.
• Fixed-category rewards, such as 6% cash back on groceries, 3% cash back on gas or 2% cash back on restaurant purchases, then 1% cash back on remaining purchases.

The best type of cash-back card will vary depending on your purchase habits. If you have a large amount of purchases in a specific category such as groceries or gas, it makes sense to find a card that offers bonus cash for your frequent purchases. But if you want a “set it and forget it” card, a flat-rate cash-back card will likely make more sense for you. If you want to maximize your cash-back earnings, consider pairing a flat-rate card with one that offers a bump for where you shop most often.

To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.
To view rates and fees for Blue Cash Everyday® Card from American Express please visit this page.

¹Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
²Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.