What are the best credit cards for cash-back in August 2021

Wednesday, September 1, 2021

Are you looking to get the best deals from your credit card? This article outlines the greatest cash-back credit cards this August, so read on below to find out what one suits you the most.

There can be a lot of benefits to using a credit card. By proving you can be trusted with the credit a bank gives you when paying on a credit card, and showing that you can pay it back, you can gain access to lots of incentives.

You can get credit cards that give a range of different bonuses. Some of the most popular ones are travel reward cards, where you receive points that can be used to spend on flights and accommodation, as well as other activities. However, the trouble with this type of card is that you have to convert the points so it relates to your actual money. In a much simpler way, you can get a cash-back credit card, which is also a hugely popular type of credit card. 

This article will go into more detail about what the best credit cards for cash-back are currently in August 2021, so read on below if you are interested.

What is a cash-back credit card?

A cash back credit card is a type of credit card that offers you rewards for every time you use it. It is called a cash-back card because you receive cash as an incentive for your card use. While it sounds simple, there are a few things to know about them. It’s also important to know that not all cash-back cards work the same way, the scheme and reward system will change depending on the provider that has issued you the card.

So for example, you could get a cash-back card that offers you 1.5% cash back on your purchases. This means that for every £100 you spend, you will be given £1.50 as a reward. Every type of cash back credit card will let you recoup your extra rewards, most commonly through a bank transfer or a check.

There are a few different formats that cash back credit cards can follow, these are flat rate cards, tiered or bonus category cards, and rotating rewards cards. Flat rate cards are the type described above, where you receive a set percentage as a return on your spending. It’s straightforward to compare these types of cards, just remember to look out for fees that are associated with the card.

Tiered and bonus category cards offer different amounts of cash back depending on where you make your purchases. For example, there can be petrol cards that give extra cash back when spending at petrol stations, dining cards offer similar bonuses for paying in restaurants. Finally, a rotating rewards card is similar to a tiered reward card, however the bonus categories change. Most typically, they change the reward category every three months.

What are the best credit cards for cash-back in August 2021

Now that you know what type of cash-back credit cards there are out there, let’s take a look at some of the best ones in August 2021.

Chase Freedom Flex

This card is a solid all rounder. You will earn a $200 dollar welcome bonus once you have spent $500 in the first 3 months of opening the account. Alongside this, you will receive 5% cash back on grocery store purchases, up to $12,000 in the first year of having the card. The annual fee is $0. To apply for this card, you will need either an excellent or good credit card score.

Citi Custom Cash Card

If you want to get the most cash back without stressing over activating particular categories, this is the card for you. Within the first 3 months of opening your account, you will earn $200 if you spend $750 on purchases. Alongside this, there is 0% APR on balance transfers and purchases for 15 months. 5% cash back can be achieved in your chosen spend category every bill cycle, up to the first $500 spend, with it being 1% after that. Also there is no annual fee.

Blue Cash Preferred Card from American Express

If you spend a lot of money at supermarkets, then this could be a good option to consider. This card offers a range of incentives including 6% cash back at US supermarkets up to $6000 a year. 6% cashback on particular US streaming services. 3% cash back at US gas stations. 1% cashback on other purchases. Alongside this there is 0% APR for 12 months and $0 annual fee for the first year of having the card.

Cash back credit cards can be a great way to get the most out of your spending. Remember to always be on top of your spending habits and not spend money you cannot repay in full. If you are able to responsibly use a credit card then it offers a range of incentives that can be tailored to suit your lifestyle. Remember to keep an eye on the deals out there to find the best cash-back credit card for you.