If your New Year's resolution is to spend less and save more, a cash back credit card can help you meet your goals. These cards earn cash back on purchases, putting a little money back in your wallet every time you use your card.
If you choose the right card, you can save money and put a big dent in your annual spending. Here are five of our favorite cash back cards for spending less and saving more in 2018.
1. Citi Double Cash Card – 18 Month Balance Transfer Offer
Rewards: 1% cash back on all purchases, with an additional 1% upon payment.
Sign-Up Bonus: None
Annual Fee: $0
Annual Percentage Rate (APR): Variable 14.49% to 24.49% APR on purchases; 0% APR for 18 months on balance transfers, then variable 14.49% to 24.49% APR.
Why We Picked It: All purchases earn double cash back once they're paid off.
For 2018: Every purchase automatically earns 1% cash back, with an additional 1% awarded upon payment. That means you have two compelling reasons to pay your balance off quickly: earning double cash back rewards and avoiding future interest.
Drawbacks: You must pay your purchases off to realize the full cash back value.
2. Alliant Cashback Visa Signature Credit Card
Rewards: 3% cash back on every purchase for the first year and 2.5% cash back thereafter.
Sign-Up Bonus: None
Annual Fee: $0 the first year, then $59.
APR:Variable 11.24% to 24.24% APR on purchases and balance transfers.
Why We Picked It: If you want the same flat cash back rate on every purchase, this card is just about unbeatable.
For 2018: For one year, every purchase earns an incredible 3% cash back rate. After the first year, that rate drops to 2.5%, which still beats most competing cards with a flat cash back rate.
Drawbacks: You must be a member of Alliant Credit Union to get this card.
3. Capital One Savor Cash Rewards Credit Card
Rewards: 3% cash back on dining purchases; 2% cash back on groceries; 1% cash back on other purchases.
Sign-Up Bonus: $150 bonus cash if you spend $500 in the first three months.
Annual Fee: $0
APR: 0% APR for nine months on purchases and balance transfers, then variable 15.49% to 24.49% APR.
Why We Picked It: If food takes a big bite out of your monthly budget, this card can help you save.
For 2018: If you spend a lot at restaurants, this card earns back 3% on every dining purchase. And if you decide to slash restaurant spending by cooking dinner at home more often, you'll still earn 2% cash back on groceries.
Drawbacks: If you don't spend much on food, there are better options.
4. Discover it – 18 Month Balance Transfer Offer
Rewards: 5% cash back on up to $1,500 of quarterly purchases in rotating bonus categories; 1% cash back on other purchases.
Sign-Up Bonus: Discover matches the cash back you earn in the first year.
Annual Fee: $0
APR: 0% for six months on purchases, then variable 11.99% to 23.99% APR; 0% for 18 months on balance transfers, then variable 11.99% to 23.99% APR.
Why We Picked It: Discover's cash back matching bonus in the first year and the 5% bonus categories can help you save big in 2018.
For 2018: This card earns 5% cash back on rotating bonus categories that change every quarter. In 2018, the quarterly categories include gas stations, grocery stores, restaurants, Amazon.com, and wholesale clubs. This quarter's categories are Amazon.com and Target, so you'll get 5% cash back if you shop at these stores at any time in December. Plus, on your card anniversary, Discover will match all the cash back you earned in the first year, doubling your rewards.
Drawbacks: This card requires you to track and activate bonus categories.