Best 3% Cash Back Credit Cards: Top Ways to Beat 2% With No Annual Fee

Are you following the advice of money expert Clark Howard and carrying a 2% cash back credit card in your wallet?

If so, you're effectively saving 2 cents on every dollar you spend with no annual fee and no spending restrictions. That's awesome!

But what if I told you that there was a chance to take the savings even further without adding an annual fee?

You could earn 3%, 4% or even 5% back on your purchases!

There are credit cards that reward specific spending categories above 2%. You’ll find that many of them offer as much as 5% in any given category.

So, to maximize your credit card rewards, you can assess your monthly spending habits to find the categories in which you spend the most.

And then you can consider whether it is worth applying for a rewards credit card that awards 3% cash back or more in that spending category.

In this article, we’ll recommend some of the top options for no annual fee cash back earnings in popular spending categories.

Best Credit Cards for 3% Cash Back or More

For the purposes of this article, I’ve broken down the opportunities to earn 3% cash back or more without paying an annual fee into four different types of credit cards:

And no matter which of these tiers you choose, you’re going to have to make a couple of concessions:

Many of the cards we'll talk about below have a great cash back rate for one category, or maybe even a good rate for a few categories, but they generally offer a lousy 1% back on all purchases made outside the specialty categories.

Going into this analysis with that in mind, you should be able to pick out a card or two to use in tandem with your 2% cash back card.

Category-specific Rewards Cards

If you have assessed your monthly spending and determined that you spend a large amount of money in one spending category, you may find that your best move after getting a 2% back card is to apply for a card that specializes in rewards for your category.

So, for example, if you spend a lot of money eating out each month you may see the most rewards potential by applying for a card that has a great rewards multiplier on restaurant dining and take out.

Many of the top spending categories, such as dining, gas and groceries, have credit cards that will award you 3% cash back or more. Below are some good options in each of those categories.

Dining Rewards: U.S. Bank Altitude Go® Visa Signature® Card

Learn More → Annual Fee: $0.00 Rewards Program Details: You can earn: 4X points on dining, takeout and restaurant delivery 2X points at grocery stores, grocery delivery, streaming services, gas stations and EV charging stations 1X point on all other eligible purchases This Is the Card for You If: You spend a bulk of your money in the dining category which includes takeout and delivery in both the U.S. and outside the country all without foreign transaction fees. U.S. Bank Altitude® Go Visa Signature® Card Review

Gas Purchases: Abound Credit Union Platinum Card

Learn More → Annual Fee: $0 Rewards Program Details: 5% cash back on gas 1% cash back on all other purchases This Is the Card for You If: You need a card specifically to pay for gas purchases. (Note: You must join the credit union to apply for this card. If you don’t meet qualifications, you may do so by making a $10 donation.) Abound Credit Union Platinum Credit Card Review

Grocery Purchases: Blue Cash Everyday® Card from American Express

card_name Annual Fee: $0 (See Rates & Fees) Rewards Program Details: Earn 3% Cash Back on Groceries at U.S. Supermarkets, on up to $6,000 per year in purchases (then 1%). Earn 3% Cash Back on U.S. Online Retail purchases, on up to $6,000 per year in purchases (then 1%). Earn 3% Cash Back on Gas at U.S. gas stations, on up to $6,000 per year in purchases (then 1%). Earn 1% Cash Back on other eligible purchases This Is the Card for You If: You frequently shop online, make trips to the gas station or shop for groceries at the supermarket.  Blue Cash Everyday® Card from American Express Review

Terms apply.

Multi-category Rewards Cards

Rather than offer you a flat cash back rate on all of your purchases, there are some cash back credit cards that instead offer boosted 3% rewards on a handful of categories.

The catch? The rest of your spending is usually rewarded at 1% cash back.

But if you already have a 2% card in your wallet, you could acquire one of these cards to boost your rewards to 3% back on multiple categories without having to apply for a bunch of category-specific cards.

Wells Fargo's Autograph Card is one of my favorites for this. It offers 3% back on SIX common spending categories!

Wells Fargo Autograph Card

Learn More → Annual Fee: $0.00 Rewards Program Details: Earn unlimited 3X points on the following: Restaurants: dining in, take-out, catering, and delivery Travel: airfare, hotels, car rentals, and cruises Gas: gas stations and electric vehicle charging stations Transit: subways, ride shares, parking, tolls and more Popular Streaming Services Phone Plans: cell phone and landline providers Plus, earn 1X points on other purchases. This Is the Card for You If: You want a no-annual-fee card with auto rental and cell phone coverage, as well bonus rewards on popular spending categories. Wells Fargo Autograph Card Review

Navy Federal More Rewards American Express® Card

Learn More → Annual Fee: $0 (See Rates & Fees) Rewards Program Details: 3X points at restaurants and on food delivery 3X points at supermarkets 3X points on gas and transit 1X points on everything else (see rates & fees) This Is the Card for You If: You are looking for a card that earns more rewards in categories such as dining, gas, and groceries. (Note: You must meet qualifications to join Navy Federal Credit Union to apply for this card.) Navy Federal More Rewards American Express® Card Review

PenFed Platinum Rewards Visa Signature® Card

Learn More → Annual Fee: $0.00 Rewards Program Details: 5x Points: on gas paid at the pump and EV charging stations 3x Points: at the supermarket (including most Target and Walmart locations), restaurants, and TV, radio, cable, streaming services 1x Points: on all other purchases (Note: Each PenFed point is worth $0.85.) This Is the Card for You If: You are looking for better than 4% back on spending for gas or EV charging and don’t mind signing up for credit union membership. (Note: 5x points on gas and EV charging is worth 4.25% cash back. PenFed points are worth 85 cents each.) PenFed Platinum Rewards Visa Signature® Card Review

Store-specific Rewards Cards

If you are loyal to one retailer and shop with them for a large portion of your monthly spend, you may find that you’re best served by a co-branded card that specifically rewards spending with that brand.

Major retailers like Amazon, Walmart, Target and Lowe’s have cards that offer up to 5% cash back on purchases made with them.

And wholesale clubs like Sam’s Club and Costco have credit cards that members can use to earn rewards both in the club and at the gas pump.

My personal favorite card in this category is Amazon’s Prime Visa. It assures Prime members that they’ll earn 5% back on all of their Amazon and Whole Foods purchases, and also has some 2% back spending power in popular non-Amazon categories.

Prime Visa

Learn More → Annual Fee: $0.00 Rewards Program Details: Earn unlimited 5% back at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel purchases with an eligible Prime membership Prime Card Bonus: Earn 10% back or more on a rotating selection of products and categories at Amazon.com Earn unlimited 2% back at restaurants, gas stations and on local transit and commuting, including rideshare. Earn unlimited 1% back on all other purchases. This Is the Card for You If: You are an Amazon Prime subscriber who regularly shops at Amazon.com or Whole Foods. Prime Visa Review

Rotating Category and Category Choice Cards

This type of rewards card is a bit of a moving target. You can earn up to 5% back with this type of card, but you may not be in complete control of the rewards category.

There are a few different ways this works:

I’ve included one of the top options for each of these card types:

Rotating Rewards: Chase Freedom Flex® Card

Learn More → Annual Fee: $0.00 Rewards Program Details: Earn 5% cash back on different categories like gas stations, grocery stores (excluding Target® and Walmart®) and select online merchants on up to $1,500 in total combined purchases each quarter you activate. Earn 5% on travel purchased through Chase TravelSM. Earn 3% on dining at restaurants, including takeout and eligible delivery services. Earn 3% on drugstore purchases. Earn 1% on all other purchases. This Is the Card for You If: You want to lock in 3% back on restaurants and dining, enjoy rotating 5% back categories and get cell phone protection by paying your wireless bill with the card. Chase Freedom Flex® Review

Highest Spend: Citi Custom Cash® Card

Learn More → Annual Fee: $0 (See Rates & Fees) Rewards Program Details: Earn 5% cash back on your top eligible spend category each billing cycle up to $500 spent. Earn 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi TravelSM portal through 6/30/2025. This Is the Card for You If: You want to use this as a complementary card to your everyday spender by picking one popular spending category to earn 5% back on each month. Citi Custom Cash® Card Review

User’s Choice: U.S. Bank Cash+® Visa Signature® Card

Learn More → Annual Fee: $0.00 Rewards Program Details: You earn 5% cash back on your first $2,000 in eligible net purchases each quarter on the combined two categories you choose. You earn 2% cash back on your choice of one everyday category, and 1% cash back on all other eligible net purchases. This Is the Card for You If: You can effectively leverage high-spend categories in your life into 5% back categories with this card. U.S. Bank Cash+® Visa Signature® Card Review

Do you have a credit card earning 3% cash back or more in your wallet? We’d love to hear how it’s earning you more rewards in the Clark.com community.

To see the rates and fees for the American Express cards featured, please visit the following links: Blue Cash Everyday® Card from American Express: See Rates and Fees.

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