A handful of cash back credit cards have an increased offers. Below are a few picks that stood out to me.
Keep in mind that a cash back card setup is very different from a travel rewards one, so if you want to optimize for travel, I don’t recommend getting these cards. Also, if you’re under 5/24, I would consider Chase cards before getting cards from another card issuer.
Bank of America® Cash Rewards Credit Card
Welcome bonus: $200 after $500 in spend within the first three months of account opening
1% on all purchases
2% at grocery stores and wholesale*
3% on gas*
*On the first $2,500 in combined grocery, wholesale, and gas purchases each quarter
The Bank of America Cash Rewards is a good starter card for those looking for cash back only. If you plan on storing your money in Bank of America banking or Merrill Edge investment accounts, then the Cash Rewards card is becomes more valuable in the long-run.
Learn more about the Bank of America Duo and how to get the most rewards in this post.
Capital One® Savor® Cash Rewards Credit Card
Welcome bonus: $500 after $3,000 in spend within the first three months of account opening
Earn 4% on dining and entertainment
2% at grocery stores
1% on all other purchases
If you’re in the market for a strictly cash back card and dining is one of your biggest expenses, I recommend considering the Savor card.
People usually gravitate towards the Uber card, but the Uber card has a $100 welcome bonus, as opposed to a $500 bonus. With the Uber card, you'll have to spend $40,000 or more per year on dining to breakeven long-term to make up for the difference in the Savor welcome offer.
Savor vs. Uber:
Year 1: non-factor, but Savor welcome bonus is bigger
Year 2 (downgrade to SavorOne): $400 difference in signup bonus / 0.01 = $40,000 more to breakeven
If you don’t get positive expected value from the Savor card after the first year, there is a no annual fee downgrade path to the SavorOne card. The SavorOne earns 3% on dining.
Math argument for bonus vs. Uber
Savor to SavorOne vs. Uber (Math Time)
Assumptions = you can hit Savor min spend
Both cards earn 4% = 0% difference
Savor $500 bonus vs. Uber $100 bonus = $400 difference
SavorOne 3% vs. Uber 4% = 1% difference
$400 bonus difference (Y1) / 1% difference = $40,000 of spend
“Uber gives more lifetime value after $40,000 on dining”
Capital One® Spark® Cash for Business
Welcome bonus: Up to $2,000
Earn $500 when you spend $5,000 within the first 3 months of account opening
Earn an additional $1,500 after you spend $50,000 within the first 6 months
Earn unlimited 2% cash back on all purchases
The Capital One Spark Cash is ideal for businesses that have a high amount of spend in non-category expenses. For example, if you need to buy inventory that doesn’t fall into a specific category, you can earn an unlimited 2% cash back.
Capital One® Spark® Cash Select for Business
Welcome bonus: $200 after you spend $3,000 within the first 3 months of account opening
Earn unlimited 1.5% cash back on all purchases
The Capital One Spark Cash Select is ideal for business that don’t have a high amount of spend per year. It also earns 1.5% cash back on all purchases, as opposed to 2% with the Spark Cash.
Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
UGC disclosure: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.