The Best Cash Back Credit Cards for Every Situation

Drawbacks of cash back

Obviously, there aren't any actual drawbacks to getting money returned to you. But before you jump on that cash back card, you should realize that you're not going to become a billionaire off of this bonus. If you use your credit card to make a significant number of purchases, you'll see a tidy return on your investment.

Of course, even with the very best cash back credit cards, the same basic rules apply. Use the credit card for every purchase possible, but don't spend more than you normally would. Be sure to make your payments every month (and pay off as much of the debt as you can). And make sure those pesky interest payments don't outweigh the benefit of the cash back. However, follow these rules and a cash back card is a great resource.

The best cash back credit cards

There are two cards generally acknowledged as the best cash back credit cards.

1. Schwab Bank Invest First Visa Signature

This is an excellent cash back card because it gives you a straight, no nonsense return. You get 2% cash back on all purchases, period. There's no monthly minimum, no problems with foreign exchange or any of that nonsense. The only drawback is that you do require a Schwab brokerage account to cash in on the rewards, although you only have to keep $1,000 in the account for it to be active.

2. Blue Cash from American Express

This is definitely one of the best cash back credit cards around, especially if you plan to use it a lot. If you purchase less than $6,500 a year, you'll see 1% back on purchases at American supermarkets, gas stations, and drugstores, and 0.5% everywhere else. If you top $6,500, you're savings go up to 5% on the former and 1% on the latter.

Which card is best for you depends on how often you'll use it. Watch out for cards that don't offer any real benefit in terms of cash back -- stick with the best cash back credit cards to maximize your return.