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One of the highest reward rates on the market allows you to earn 5% cashback in spins or selected categories using the following cards: Plus, you can earn 2-3% in additional categories and 1% in all others.
Please check out the card’s welcome bonus, caps and other requirements before applying. And if the 5% category isn’t comprehensive enough for you, a high-interest cashback card could be a great addition.
Top card with 5% cashback
Compare the best 5% cashback cards
| Card name | It’s perfect for | Annual fees | Recommended Credit Score | Remuneration rate |
|---|---|---|---|---|
| Discover IT® Cashback | Rotation Category | $0 | Good, great (670 – 850) |
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| ChaseFreedomFlex® | Extra dining and drugstore rewards | $0 | Good, great (670 – 850) |
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| City Custom Cash® Card | Automatic rewards | $0 | Good, great (670 – 850) |
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| US Bank Cash+®VisaSignature® Card | Customizable Rewards | $0 | Good, great (670 – 850) |
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A 5% cashback card usually requires a good Experent Credit Score. If you have bad or fair credit, consider the top picks of your card for bad credit.
How to choose a 5% cashback card
You will notice similarities between cards that offer this high reward rate, but there are several determinants to compare.
- Look at the reward calendar. Cards that rotate category rewards often do not announce the next category until a month ago, but you can check the calendar for the past few years for examples of categories. If your card offers 5% in the auto or selected top categories, please see the full list of available categories. In short, you need to make sure that a large ticket cost earns 5% of your card.
- Compare welcome bonuses and other perks. The card comes with a more welcome offer than anything else, but it depends on your size and spending requirements. Get bonuses in time and make sure you are satisfied with the terms of the offer. Also, some cards offer more than others, so look for card perks like purchase protection and issuer travel and entertainment bookings.
- Please check your spending cap. These 5% cards often come with spending caps in the bonus category, ranging from $500 per billing cycle to $2,000 per quarter. If you are a large Spender in a particular category, you can calculate the rewards you earn on one of these cards, for example, for cards that earn unlimited 3% rewards in the same category.
Tips for maximizing rewards with a 5% cashback card
With the right moves, you can make the most of that huge reward rate. Here’s how to maximize your cashback:
- Activation your Bonus Categories every Billing cycle or quarter. Except for automatic rewards in Citi Custom Cash, other 5% cards require you to activate the spin category or select the bonus category you like. If you forget, you miss out on the increased rewards.
- Pair multiple cards with different bonus categories. Consider using multiple cards to cover as many bonus categories as possible. You can use a separate card to maximize your rewards in each 5% category throughout the year. Most cards in this niche do not charge an annual fee.
- Combine a 5% cashback card with a flat rate cashback card. Most 5% back credit cards only return 1% on regular purchases, so consider pairing them with flat rate reward credit cards that reward you with 1.5 or 2% backback on regular spending.
- Pay your credit card bill in full every month. If possible, try not to bring your balance to your card. Approved interest wipes out the value of the reward. If you are unable to pay in full on time, stop buying with your card and add your balance until you pay it back.
What’s next?
Conclusion
5% is one of the best reward rates, and if you strategize your spending, you could potentially add a 5% cashback card to your wallet. Be aware of the bonus categories and don’t forget to activate them if necessary. However, these cards often come with an expenditure cap, allowing you to reward only one category. Other cashback cards offer unlimited rewards in multiple categories, albeit at a slightly lower rate. The best card for you is not only the ones with the highest reward rate, but also matches your spending habits.
FAQ
*Information about ChaseFreedFlex®, CitiCustiCash® cards, and US Bank Cash+® Visa Signature® cards is collected independently by Bankrate. Card details have not been reviewed or approved by the card issuer.