Can you get cash back with a credit card?
Yes, you can get cash back with a credit card. Learn how cash back credit cards work, how rewards get redeemed, and which fees can eat into your rewards.
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Summary
Yes, many credit cards let you earn cash back, usually as a percentage of your eligible purchases.
Cash back credit cards can offer a flat rewards rate, or higher rewards in specific spending categories like groceries or gas.
Cash back rewards are typically paid out as a statement credit, a deposit to your bank account, or occasionally gift cards.
Fees like an annual fee, a cash advance fee, or foreign transaction fees can eat into the value of your rewards if you're not careful.
Not every card built around building credit skips rewards. Some, like a credit builder card, let you earn on everyday spending too.
Yes, you can get cash back with a cash back credit card. These cards return a small percentage of what you spend as a reward or often redeemed as points, whether you're filling up at gas stations or picking up a prescription at the drugstore. It's one of the simpler rewards programs to understand, but the details, like which purchases qualify and how you redeem your rewards, vary quite a bit from card to card.
How does a cash back credit card work?
If you're wondering how do cash back credit cards work, it starts with a percentage back on every eligible purchase. A cash back credit card earns you a percentage back on everyday purchases. Some cards use a flat rewards rate across everything you buy, while others focus on specific spending categories, like groceries, gas stations, or streaming services. A card might also come with a 0% intro APR on new purchases for a limited time, though that's separate from how its cash back program actually works.
How do cash back rewards get paid out?
Once you've earned cash back rewards, you'll usually redeem them in one of a few ways. A statement credit lowers your balance directly. A deposit into your checking or savings account gives you the cash to spend elsewhere. Some rewards programs also let you trade your rewards points for gift cards, though the cash value is usually the simplest option.
Learn more about the OneyPay CashRewards Card
What actually earns you cash back?
Not every purchase counts as an eligible purchase. Most rewards programs only pay out on qualifying purchases, which usually means purchases made with your physical card at eligible merchants. A cash advance, where you withdraw cash against your credit limit or your available credit at an ATM, usually doesn't earn cash back, and often comes with its own cash advance fee on top. Balance transfers typically don't earn rewards either.
Watching for fees that eat into your rewards
Cash back only helps you if the fees don't cancel it out. Look at whether a card charges an annual fee, or advertises no annual fee instead. Check the variable APR you'd pay on any balance you carry, since a high interest rate can outweigh whatever cash back rewards you've earned. If you travel, foreign transaction fees are worth checking too. Travel credit cards sometimes waive these fees, while many everyday cash back cards do not. The CFPB has flagged rewards terms that get buried in the fine print, so it's worth reading a card's rewards terms closely before you apply.
Debit cards and other rewards options
Cash back isn't limited to credit cards. Some debit cards tied to a checking or savings account offer their own rewards program on everyday purchases, though the rewards are often smaller than what you'd get with a credit card. Setting your PIN and using tap to pay at checkout works the same either way, and doesn't affect whether the purchase earns rewards.
Cards worth comparing
Plenty of card issuers offer cash back, from big-box retail cards to travel credit cards. When you're comparing credit card options, look past the headline rewards points and check the underlying details. Which spending categories earn bonus categories, how direct deposit or other account requirements affect your rate, and what the rewards program excludes. The right card usually comes down to your own spending habits, not just the advertised rate.
Building credit and earning rewards at the same time
If you're working on your credit and don't want to give up rewards altogether, look for a secured card that still lets you earn points on everyday purchases while it reports your payment history to the bureaus. The OnePay Builder Card works this way—it's a secured card that requires a OnePay deposit account. You can still earn rewards on your spending, but you're also building credit every time you swipe or tap because, unless you opt out, the OnePay Builder Card reports your payment history to the three major bureaus, which can help you build credit over time unless you opt out.
Frequently Asked Questions
It depends on the card. Some cash back credit cards require a strong credit score to qualify, while others, like a credit builder card, are designed for people with limited credit history and still offer rewards.
Cash back gives you a cash value directly, often as a statement credit or deposit. Rewards points can sometimes be redeemed for cash back too, but they might also convert to travel, gift cards, or other options depending on the rewards program.
Usually not. A cash advance is treated differently from a regular purchase, and it often comes with its own cash advance fee and a higher APR, on top of not earning rewards.
Yes, some debit cards linked to a checking or savings account offer rewards on everyday purchases, though the rate is often lower than what a credit card offers.
No, balance transfers are typically excluded from rewards programs, since they aren't treated as new purchases.
Check for an annual fee, a variable APR, foreign transaction fees, and any cash advance fee. These can outweigh the value of your rewards if you carry a balance or travel often.
Not always. Bonus categories vary by card and can include gas stations, grocery stores, streaming services, or dining, and some programs rotate these categories throughout the year.
In many cases, yes. Most rewards programs offer a choice between a statement credit, a deposit to your bank account, or gift cards, though the value can vary depending on which option you choose.
It depends on the card. Some cash back cards charge foreign transaction fees on international purchases, while others, often travel credit cards, waive them.
Yes. Some credit builder cards, including the OnePay Builder Card, let you earn rewards points on everyday spending while your payment history is reported to the credit bureaus.