Finding the best credit cards for cash back in 2018 required a strategic approach, as issuers were aggressively competing for spenders by boosting rewards in popular categories. Unlike points programs tied to specific retailers, cash back offers true flexibility, allowing cardholders to redeem rewards as a statement credit, direct deposit, or a check. This guide breaks down the top options available that year, focusing on real-world value rather than just headline numbers.
Understanding the Cash Back Landscape
The 2018 market was defined by cards that offered flat rates of 1% to 2% on every purchase, which remain the standard for simplicity. However, the most valuable products were those that layered bonus categories, such as 5% cash back on rotating quarterly merchants or 2% at grocery stores and wholesale clubs. Cardholders had to weigh the effort required to activate rotating categories against the potential earnings, making automation a key feature.
Top Overall Contender
Chase Freedom Unlimited
For many consumers, the Chase Freedom Unlimited represented the best all-around option in 2018 due to its robust sign-up bonus and straightforward rewards structure. It provided a high credit limit and competitive purchase rewards, eliminating the complexity of tracking quarterly categories while still delivering strong returns on everyday spending.
Category Leaders for Specific Spend
Specialized cards continued to dominate for users with consistent spending patterns in specific sectors. These products required more management but offered significantly higher returns for dining, gas, or travel enthusiasts who frequented the same merchants month after month.
Chase Freedom Quarterly: Offered 5% cash back on rotating categories like gas stations or restaurants when activated, making it ideal for heavy spenders in those sectors.
Discover it Gas & Grocery: Delivered 5% cash back on gas and grocery purchases on up to $1,500 in combined spending each quarter, providing a reliable boost for household budgets.
Amex Blue Cash Preferred: Targeted cardholders who shopped at U.S. supermarkets, offering 6% cash back on the first $6,000 in annual spending at those locations.
Sign-up Bonuses and Thresholds
In 2018, sign-up bonuses were a critical component of value, often awarding thousands of dollars in cash back after meeting a minimum spend threshold within the first few months. Applicants needed to assess their monthly expenses to determine if they could comfortably hit these targets without changing their habits.
Maximizing Your Earnings
To truly benefit from the best credit cards for cash back, users had to adopt specific strategies beyond basic spending. Rotating category cards required setting calendar reminders to activate offers, while optimizing the use of welcome bonuses ensured that new cardholders hit the ground running with significant earnings from their first statement.
Fees and Interest Considerations
While the focus was on rewards, responsible users in 2018 prioritized cards with no annual fee to ensure that earnings were not eroded by account maintenance charges. Carrying a balance remained a costly mistake, as interest rates would quickly negate any cash back earned, making these products best suited for those who paid their statement in full every month.
