Cash back credit cards allow you to earn a small percentage of each transaction back as a cash bonus. While the amount is usually small, around 1%-3%, the rewards can really add up. What's the catch? Rewards cards typically carry higher interest rates than other no-frills cards, so we only recommend them to people who pay off their entire credit card bill in full every month. Here's a list of the top cash back cards for 2010:
#1 MBNA Smart Cash
MBNA Smart Cash
It is our top pick in the cash back category. You'll get up to 5% cash back on gas and grocery purchases for the first 6 months of card-membership, and up to 3% cash back on gas and grocery purchases thereafter. All other purchases receive up to 1%. While there are some earnings restrictions on the gas and grocery purchases, this card is a great everyday cash rewards card which comes with no annual fee.
#2 Capital One Cash Back Plus Platinum MasterCard®
Power spenders will like the Cash Back Plus Platinum from Capital One. You can earn up to 2% cash back; 1% on the first $15,000 in yearly purchases, and 2% on purchases up to $100,000. Anything above 100K actually earns a little less at 1.5%. While the card does come with an annual fee, power spenders will have no problem offsetting that cost throughout the year.
#3 MBNA PremierRewards® MasterCard®
The PremierRewards Card offers a flat 1% cash back on all net retail purchases. There are no tiers to worry about and no annual fee. Your rewards will also be credited to your account once per year in January. Some cards cap the amount of rewards you can earn, but the PremierRewards card offers unlimited earning potential. This is a good choice if you prefer a 'simple' cash rewards program.
#4 Dividend Platinum Card
The CIBC Dividend Platinum Card offers up to 2% cash back, but you will need to spend a lot to get there. The rewards are based on a tiered system. The first $3,000 in purchases earn 0.5%, spending between $3,000 and $15,000 will get you 1%, and spending between $15,000 and $30,000 will earn 1.5%. To get to the 2% level you will need to spend between $35,000 and $50,000 annually. This card carries a $79 annual fee.
