Cash back is the most flexible of all credit card rewards. Instead of points that you have to figure out how to redeem — and that you might not be able to redeem for something you want — you get real dollars and cents that you can use for, well, anything. Depending on the card you use and where you use it, you'll earn cash rewards of 1% to 6% of the amount of each transaction.
Cash back credit cards come in three varieties: flat-rate, bonus category and tiered. Flat-rate cards pay the same rate on everything. Bonus category cards pay a higher rate in categories that change from time to time and 1% on everything else. Tiered cards pay higher rates on certain types of purchases, such as gas or restaurant meals or groceries, and 1% on other spending. No single cash back card is a good fit for everyone. Make your choice based on how you spend money.