Advertiser Disclosure: The credit card offers that appear on the website are from companies from which this site receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers.

Cash back cards have gained in popularity over the past decade as banks seek new ways to reward customers for keeping their cards top-of-wallet. A cash back card functions like an automatic rebate—spend on your card and get a certain percentage back. Typical cash back rates are between 1% and 5%. The experts at Bankrate have compiled information, advice and recommendations for cash back credit cards below.

Cash back cards vs. We independently analyzed over 300 cards, ranking them using our proprietary Bankrate Score, to determine our top picks for best cash-back credit cards. Each card is evaluated on factors like APR, annual fee, late and other fees, rewards, intro bonus and other perks, and credit threshold. For cash-back cards, we look closely at the value and complexity of rewards programs, as well as sign-up bonuses and annual fees relative to reward value.

One percent back on all purchases used to be routine, but now several issuers offer a flat 1.5 percent or even 2 percent back on all purchases. Even better offers are available through credit union memberships. For example, Alliant is offering an impressive 3% cash back for one year, followed by 2.5% cash back in years two and beyond.

There are also bonus category cash-back cards which reward you with higher percentages when you spend within certain parameters. For example, one card may offer 3 percent back on grocery store purchases but drops to 1 percent on all other spending. Another type of card may offer as much as 5 percent back, but only within certain categories and within a certain time frame. Cash back cards vs. Think of cash-back cards as a basic type of rewards card.

Although the amount of cash-back and ways to earn bonus cash back can vary greatly among each card, they all give one reward back: cash. But with travel rewards cards, there are usually more than one way to use those rewards. Some travel rewards cards give you the option to redeem the rewards for travel, or take cash-back, Other cards offer you airline miles. Some premium rewards cards will give you a greater redemption value if you use the accrued rewards to book travel through their portal.

Just as there is no one best cash-back credit card for everyone, the same is true of travel rewards cards. Someone who only travels once a year by car will benefit more from a different type of card then a globetrotting wanderer. There’s no one-size-fits-all cash back card. If you’re considering adding a cash-back card, consider the areas your household is likely to spend the most.

A busy suburban family, for example, will likely benefit more from a card that offers greater rewards on gas and groceries than a single urban dweller who frequently dines out and doesn’t own a car. Frequent warehouse shoppers may find that a co-branded card to their favorite location will give them the most bang for the buck.

If you can’t pinpoint an area where you spend the most, it’s hard to go wrong with a general purpose cash-back card-it’s like getting a discount every time you spend on the card. Keep in mind that, unless you’re paying the balance in full and on time every month, the value of any rewards associated with the card is likely to be outweighed by what you’ll pay in interest charges.

If you typically carry a balance, a low-interest credit card may be an overall better choice. These cards typically don’t charge an annual fee. Flat rate cash-back cards are an effortless way to earn money back for spending the way you would normally. If you’re highly organized and up for the challenge, combining a flat-rate cash-back card with one that offers rotating bonus categories, can net you some serious savings.