The Reddit community has examined all kinds of credit cards, from those offering flat rates on every purchase to ones with rotating categories and special perks for things like travel or groceries.
In this article, we’ll dive into what Redditors truly think about cash-back credit cards, break down the pros and cons of popular options, and share tips for maximizing your rewards.
Cashback Credit Cards On Reddit: Most Popular Threads
We’ve summarized the most discussed threads to get a clear understanding of Redditors' preferences and considerations regarding cash-back credit cards.
You'll find recommendations for the best cards based on spending habits, lifestyle, and even net worth, as well as cautionary tales about potential pitfalls.
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Redditors Share Their Favorite Cash Back Credit Cards
Reddit users often highlight their favorite cash back credit cards tailored to specific needs and lifestyles, providing a wealth of advice for those seeking the best options.
In the thread Must Have Cash Back Card, Not_A_Real_Goat highlights the Citi Custom Cash Card for its 5% back on the first $500 spent on groceries each month, describing it as “basically $300 a year guaranteed cash back” (34 upvotes).
In the thread What Are Top Credit Cards for Cash Backs, Rewards, etc?, The user Starbuck522, with 33 upvotes, endorses the Citibank Double Cash card for its simple 2% cash back on all purchases, which is particularly appealing to those who prefer a straightforward rewards structure.
In the same thread, TheAnalogKoala and KookyHorse praise the Chase Amazon Prime card for its 5% back on Amazon and Whole Foods purchases, highlighting its usefulness for frequent Amazon shoppers (13 and 21 upvotes, respectively).
Lastly, the Redditor gdq0, in the same thread, compares the Amex Blue Cash Preferred to other cards and suggests that its rewards structure, which includes high cash back rates for groceries, gas, and transit, makes it “infinitely better than the BCP” for certain spending patterns (6 upvotes).
In the thread Best Cash Back Card In 2024, PlatypusTrapper mentions the Bank of America Premium Rewards as the “best catch-all card” for those who can achieve Platinum Honors Status, which boosts cash back rates to 2.625% on all purchases (25 upvotes).
In the thread Pitch Your Favorite 2%+ Cashback Card (Preferably with SUB), TheTaxman_cometh recommends the U.S. Bank Altitude Reserve for its “effective 4.5% cashback on mobile wallet purchases” and substantial sign-up bonus, worth $750 (14 upvotes).
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Redditors Discuss "Free Money" Perception of Cash Back Credit Cards
A common theme among Redditors is the perception of cash back credit cards as a form of “free money.” Many users express their enthusiasm for the benefits of cash back cards, provided the balance is paid off monthly. The thread titled Cash Back Credit Cards captures this sentiment well.
The redditor t-poke (1.6k upvotes) captures the essence of how many Redditors feel about cash back cards: “Yes, it's free money. No downsides as long as you pay it off.”
This straightforward comment highlights the popular view that, when used responsibly, cash back cards provide an easy way to earn rewards without any real cost.
This perspective is echoed by AutoimmuneDisaster, who shared their experience of receiving $5k in “free money” over 13 years by paying off their credit card balance bi-weekly (262 upvotes).
However, running after cashback may not be the smartest thing to do. dumbdumbmen (107 upvotes) reminisces about past exploits, saying, “The Best ‘scam’ ever was the US mint selling dollar coins with free shipping. People were buying hundreds of thousands of coins, getting free miles/cash back, and simply depositing them at their bank.”
Lastly, gigazelle (63 upvotes) offers a more critical take, noting, “In a weird twisted way, the ‘free money’ you get is paid for by those who use their credit card irresponsibly.”
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Redditors Debate Cash Back Cards As A Frugal Strategy
On Reddit, users often debate whether using cash back credit cards is a genuine frugal strategy or merely a convenient financial tool. The discussion in the thread Healthy Discussion: Is Using a Credit Card for Cashback a Lifehack or Considered as Being Frugal? centers around this question.
SwagFlops, with 99 upvotes, argues that using cash-back cards is indeed frugal, noting they don't “really have a reason to use my debit other than ATMs and bank shit” and emphasizing the cashback benefits.
Kat9935 echoes this sentiment, equating cash back to “couponing” as a way to avoid “throwing money away” (10 upvotes). In this sense, many Redditors view cash back as a modern equivalent of traditional frugality practices.
However, the user froopaux adds a critical reminder: it's only a frugal strategy “if you pay it back every month” (29 upvotes), highlighting the importance of responsible credit card use.
Ultimately, Redditors largely agree that using cash back credit cards can be a clever way to manage finances and save money
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Redditors Debate the Impact of Cash Back Cards on Credit Scores
Reddit users frequently discuss the potential impact of cash back credit cards on credit scores, with many offering insights and experiences on this topic.
The thread Are Cash Back Cards Worth It? features a lively discussion about whether opening and closing cash back cards frequently harms one's credit score.
The Redditor sudifirjfhfjvicodke, who received 347 upvotes, emphasizes that “hard inquiries aren't a huge component of your credit score,” and that “there's really very little reason to obsess over your credit score” unless a major purchase, like a house or car, is imminent.
This comment underscores the idea that as long as a user maintains decent credit history, low utilization, and avoids late payments, their score should remain healthy and even increase over time.
The user yes_its_him, with 66 upvotes, adds that even with significant spending for cash-back offers, “your credit wouldn't have any major damage,” suggesting that responsible use of cash-back cards is unlikely to negatively impact credit scores.
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Redditors Share Strategies for Maximizing Cash Back Rewards
Maximizing cash back rewards is a hot topic among Redditors, who often share their strategies for getting the most out of their credit cards. In the thread Pitch Your Favorite 2%+ Cashback Card , users discuss various card options and tactics to optimize cash back.
kushan22, with 54 upvotes, suggests pairing the Fidelity 2% card with a 529 account for long-term benefits, mentioning a $150 sign-up bonus that's available most of the year. This strategy not only earns cash back but also contributes to future savings goals.
Redditor Gain_Spirited compares cards like the Active Cash and Double Cash, pointing out the former's cell phone insurance and the latter's transfer partners. They recommend readers choose a card based on their specific spending habits (22 upvotes).
Meanwhile, kboogie82 suggests that a combination of Custom Cash, Freedom Flex, Discover It, and a flat 2% card can cover most spending categories (13 upvotes).
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Redditors Explore the Role of Cash Back Cards in Budgeting
Overall, Redditors recognize that cash back cards can be an effective tool in budgeting and financial planning, provided they are used wisely to avoid debt and maximize rewards.
In the thread Healthy Discussion: Is Using Credit Card for Cashback a Lifehack or Considered as Being Frugal?, Kat9935 compares cash back rewards to “couponing,” viewing them as a means to “work longer or harder for money I don't need to spend” (10 upvotes).
lazyloofah also shares their approach of paying everything with a card offering 1-5% back and having the cash back automatically applied to the balance, simplifying budgeting (7 upvotes).
In the thread Cash Back Credit Cards, gigazelle points out the ethical aspect, noting that the “free money” from cash back is paid for by those who use credit cards irresponsibly, encouraging responsible financial planning (63 upvotes).
Additionally, McKnuckle_Brewery, in the thread What Are Top Credit Cards for Cash Backs, Rewards, etc?, advises avoiding credit card debt to enjoy both convenience and cash back, emphasizing that financial discipline is key to benefiting from these rewards (176 upvotes).
