How to Earn 5% Cash Back on Nearly Every Purchase (2024)

Not too long ago, earning 5% cash back on nearly every credit card purchase would have sounded preposterous and might have produced a healthy fit of chortles from credit card enthusiasts.

These days, if you equip yourself with the right credit cards, you can earn a minimum 5% back on things you're already buying, like groceries and gas. While you might have to settle for less on some purchases, these four cash back credit cards will help you earn at least 5% back for most of them.

1. Citi Custom Cash® Card

  • How it earns 5% back: On your top eligible spending category each billing cycle.
  • Earnings cap on the 5%: $500 spent on your top spending category, or $25 in cash back. The earnings cap resets every billing cycle.
  • Annual fee: $0
  • Welcome bonus: Earn 20,000 ThankYou® Points worth $200 after you spend $1,500 within 6 months of opening an account.

If you're building an arsenal of 5% cash back cards from scratch, the Citi Custom Cash® Card is an excellent place to kick things off.

Apply here for the Citi Custom Cash® Card. (See rates and fees.)

The card's 5% earn rate is one of the most flexible and gives you control over which spending category will earn the most cash back. Other cash back cards have fixed or rotating categories that give you little choice but to earn 5% on whatever the credit card company says. This card lets you fill in the gaps, earning 5% where other cards earn less.

For instance, if Discover it® Cash Back earns 5% on dining out and streaming services for the quarter, you can use Citi Custom Cash® Card to earn 5% on groceries.

The 10 categories that qualify include:

  1. Drugstores
  2. Gas stations
  3. Grocery stores
  4. Fitness clubs
  5. Home improvement stores
  6. Live entertainment
  7. Restaurants
  8. Select streaming services
  9. Select transit
  10. Select travel

2. Chase Freedom Flex℠

  • How it earns 5% back: On combined spending in quarterly bonus categories.
  • Earnings cap on the 5%: $1,500 spent, or up to $75 in cash back each quarter.
  • Annual fee: $0
  • Welcome bonus: Earn a $200 bonus after you spend $500 within your card's first 3 months.

The Chase Freedom Flex℠ offers you 5% quarterly bonus categories, plus unlimited 5% back on all travel booked through Chase Ultimate Rewards®.

Apply here for the Chase Freedom Flex℠ card.

This card, along with Discover it® Cash Back discussed below, will give you fresh ways to earn 5% each quarter. In the past, the card has earned 5% at Target, fitness clubs, grocery stores, gas stations, and home improvement stores, among others.

3. Discover it® Cash Back

  • How it earns 5% back: On rotating quarterly categories. Note: To earn the full 5%, you must activate the category before the quarter begins.
  • Earnings cap on the 5%: $1,500 spent on the bonus category within the quarter, or $75 in cash back.
  • Annual fee: $0
  • Welcome bonus: Discover will match all cash back earned within your first year of using the card.

Like Chase Freedom Flex℠, Discover it® Cash Back (see rates and fees) earns 5% on rotating quarterly categories, such as gas stations, Target, Amazon, and Paypal, among others. If you already have the Citi Custom Cash® Card and Chase Freedom Flex, this cash back card can give you yet another place to earn 5% back.

In addition to the quarterly categories, Discover will occasionally send out special offers via email that let you earn an extra 5% back. These offers are usually capped at $1,000 spent (or $50 in total cash back) and often last two months. In the past, they've included Amazon, PayPal, and grocery stores.

4. Prime Visa

  • How it earns 5% back: At Amazon and Whole Foods.
  • Earnings cap on the 5%: No earnings cap.
  • Annual fee: No annual fee, but you need an Amazon Prime membership ($139).
  • Welcome bonus: Get a $100 Amazon Gift Card when your application is approved.

The Prime Visa is an excellent "catch-all" card that can earn 5% on purchases that don't fit neatly into spending categories.

For instance, you can use the Prime card to buy books, electronics, furniture, pet food, apparel, games, toys, and other purchases that would earn less than 5% on other cards. The card also earns unlimited 5% at Whole Foods, which gives you an option to earn more at a grocery store.

How to start earning 5% back on nearly every purchase

These four cash back cards can help you earn 5% back on everyday spending. If your wallet is missing all four, the Citi Custom Cash® Card is a good card to start, as it gives you more flexibility over how you earn your 5%. Then, you might want to add a card with a rotating quarterly category, like the Chase Freedom Flex℠. Another option for this is the Discover it® Cash Back.

Be careful not to apply for too many cards at once, however, as this can hurt your credit score and might also jeopardize your chance at getting approved for a new card. Credit card companies might wonder why you need so much credit at once and reject an application, even if your credit score is high. In general, it's best to wait three to six months after getting a new credit card before applying for another.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

How to Earn 5% Cash Back on Nearly Every Purchase (2024)

FAQs

How to get 5% cashback on everything? ›

Like Chase Freedom Flex℠, Discover it® Cash Back (see rates and fees) earns 5% on rotating quarterly categories, such as gas stations, Target, Amazon, and Paypal, among others. If you already have the Citi Custom Cash® Card and Chase Freedom Flex, this cash back card can give you yet another place to earn 5% back.

How do I get cashback on every purchase? ›

Flat-rate credit cards offer consumers a hassle-free approach to cash back. With a flat-rate cash back credit card, every purchase earns the same rate of cash back. The best flat-rate cards give cardholders 1.5 percent to 2 percent cash back on every purchase.

What does it mean to earn 5% cash back? ›

Christie Matherne, Credit Card Writer

@christie_matherne • 06/12/24. Getting 5% cash back on a credit card means you will earn $5 in cash back rewards for every $100 you spend on qualifying purchases.

How to calculate 5% cashback? ›

To calculate the cash back, simply multiply the total purchase amount by the cash back percentage, then divide by 100.

What is the best cash back strategy? ›

The best strategy for earning more cash back is using multiple credit cards. You can earn credit card welcome offers this way, and many are worth $200 or more. You'll also be able to earn high cash back rates across more spending categories.

Is 5% cash back worth it? ›

If you are looking to maximize rewards, a 5% cash-back card can be a great asset. Oftentimes, they have standard interest rates and no annual fee. However, these rotating category cards aren't for everyone. Trying to optimize your usage can be a lot of work, and many people don't want the hassle.

What is better 5x points or 5% cash back? ›

Cash back rewards offer ease as they have the same redemption rate and can be easily converted into statement credits, checks or bank transfers. Points cards typically offer higher rewards and substantial welcome bonuses compared to cash back cards, which can offset potential annual fees.

How much is 3 cash back on $1,000? ›

How 3% Cash Back Works. The way 3% cash back works is simple: You make purchases on your card, and then rewards equaling 3% of those purchases appear in your account, which can sometimes take one to two billing periods. For example, if you spend $1,000 on purchases eligible for 3% cash back, you get $30 in rewards.

How can I earn more cash back? ›

How to maximize cash back with your credit card
  1. Evaluate spending habits before choosing a card.
  2. Compare sign-up offers and welcome bonuses.
  3. Focus on your biggest spending categories.
  4. Pair the right cards together.
  5. Take advantage of issuers' shopping portals.
  6. Make the most of cash back apps.
  7. Use your cash back wisely.
Mar 18, 2024

How much is 5% cash back on $1500? ›

What 5% cash back really looks like
Monthly SpendQuarterly SpendQuarterly 5% Cash Back
$500$1,500$75
$750$2,250$113
$1,000$3,000$150
$1,500$4,500$225
7 more rows
Feb 21, 2024

What is the formula for cashback? ›

The formula for your cash back calculation will be: Purchase Price x Cash Back Percentage (as a decimal) = Cash Back Total.

How much is 1 cash back on $100? ›

A 1% cash back credit card returns 1% of the amount you spend on purchases back to you in the form of cash back rewards. This means that for every $100 you spend on the card, you'll receive $1 in cash back rewards, which you can redeem for a check, statement credit, or direct deposit to a linked bank account.

How do you get 5% cash back at Walmart? ›

Get the Walmart Rewards Card and enjoy the same great rewards for Walmart purchases including 5% cash back for the first 12 months when you use your card with Walmart Pay for in-store purchases, upon approval. Apply now Application via Capital One®. See the Walmart Rewards Cards Terms and Conditions below.

Where can I get a lot of cashback? ›

Stores That Give the Most Cash Back at the Register:
  • Albertson's: you can get $100-$300 with a debit card.
  • Food Lion: you can get $200 with a debit card and $50 with a personal check.
  • Safeway: you can get $200 with a debit card.
  • Save Mart Supermarkets: you can get $200-$300 with a debit card (varies by location).
Jul 19, 2019

Are there any 5% back credit cards? ›

These cards often don't come with impressive benefits or return rates — but the U.S. Bank Cash+® Visa® Secured Card does. The card earns 5% cash back (for up to $2,000 in combined purchases per quarter, then 1%) in two categories of your choosing.

Does any credit card offer 5% cash back? ›

Several banks offer credit cards that earn 5% cash back (or greater) across specific categories, rotating quarterly categories or at designated retailers. Since the eligible purchases are often quite narrow, you'll need to carefully choose a card that fits your specific lifestyle.

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