Best Cash-Back Cards for the Holiday Season

Credit card sign-up bonuses are the biggest they've ever been, and if you're not taking advantage of them this holiday season, you're leaving money on the table.

Most of the hype surrounding the sign-up bonus arms race has centered on miles and points. That's understandable, since offers of 50,000 points and even 100,000 points are sure to grab people's attention as they dream of jetting off to Fiji or Paris. The truth, however, is that sign-up bonuses aren't just about points. America's favorite type of card -- the beloved cash-back card -- now often comes with a compelling bonus of its own.

[See: 12 Habits to Help You Take Control of Your Credit.]

These cards can work for you, even if you prefer to pay cash during the holidays and have already saved up for all that you're going to buy. Simply apply for the card, use it to make your holiday purchases and then pay off your credit card with the cash you've saved throughout the year. You can end up saving yourself a lot of money in the process.

Here are the best cash-back credit cards to use this holiday season.

Chase Freedom Unlimited. If you're going to spend $500 or more on holiday shopping this season -- and many people will -- you should seriously consider applying for this card. The Chase Freedom Unlimited card gives you a $150 cash-back bonus when you spend at least $500 in your first three months with the card. That bonus can make a major difference in anyone's holiday budget.

Looking beyond the sign-up bonus, the card offers 1.5 percent cash back on every purchase, comes with a zero percent annual percentage rate for purchases for 15 months and has an APR as low as 14.24 percent once the introductory period ends. (That APR can go as high as 23.24 percent, however, so check your credit score before you apply, so you can have a feel for which APR you'd likely receive.)

Finally, there's no annual fee with the card. That means that you could spend the $500, pocket the sign-up bonus and never have to use the card again, if that's what you choose.

[See: 10 Easy Ways to Pay Off Debt.]

Capital One Quicksilver Cash Rewards. This card can't quite match Chase Freedom's sign-up bonus -- offering $100 cash back after spending $500 in your first three months -- but it comes close.

The card's introductory APR offer comes up a bit short as well, at zero percent for nine months. However, in many other ways, the Capital One card is every bit the equal of Chase's offering. For example, it gives 1.5 percent cash back on every purchase, there is no annual fee, and the APR offer is similar (13.24 to 23.24 percent).

Blue Cash Everyday Card from American Express. The two previous cards are "set it and forget it" cards. You get the same amount of cash back everywhere you shop whenever you shop there. They make it easy for folks to know exactly what to expect. AmEx's Blue Cash Everyday card is different, and if your holiday shopping plans include Amazon.com, it is worth your consideration.

If you apply for this card by Jan. 11, 2017, you will earn 10 percent cash back on all purchases you make at Amazon in the first six months, up to $200.

The card also offers:

-- $100 back when you spend $1,000 on purchases in the first three months.

-- 3 percent back at supermarkets, up to $6,000 per year in purchases.

-- 2 percent back at gas stations.

-- 1 percent back on all other purchases.

There's no annual fee. There's zero percent in interest on purchases for 12 months. There's an APR range of 13.24 to 23.24 percent. That's all competitive with other cash back cards in the marketplace.

This card is a perfect example of why it's important to understand how you will use a card and what you want to get from a card before you apply. If this card fits your lifestyle, it can be really lucrative. If it doesn't, you might be better off settling for a more straightforward credit card that gives 1.5 or 2 percent cash back on everything.

Discover It. The popular Discover It card is different from the three previous cards in several ways.

First of all, the card's "sign-up bonus" is lucrative, but it won't come quickly. At the end of your first year, Discover will match all the cash back you earned during that year. That could total hundreds of dollars, depending on your spending habits, and is something other cards may not be able to match.

Second, it features rotating bonus categories that can boost your cash-back return. For example, if you opt-in, you can get 5 percent cash back at Amazon.com, Sam's Club and department stores through Dec. 31, 2016. That can be lucrative if the featured categories appeal to you and if you remember to opt in.

Lastly, it has the lowest possible APR of any of these cards. The range of rates is 11.24 to 23.24 percent. If you are likely to carry a balance, that's a big deal.

[See: What to Do If You've Fallen (Way) Behind on Your Credit Card Payments.]

The bottom line. All of these cards have features that make them compelling. However, it's important to remember that there's no one-size-fits-all best card out there. The best card for you is one that fits your lifestyle. That's the only way you can truly maximize all of the great perks these cards have to offer.

One warning: Do not apply for these cards without understanding how much you have to spend to get the sign-up bonus, and if you feel like you can't reasonably reach the minimum spend that's required, don't get the card. The last thing any cardholder should ever do is overspend just to get rewards, regardless of how lucrative those cards might be. That's just asking for trouble.

Matt Schulz is the senior industry analyst at CreditCards.com, a site dedicated to helping people make smart decisions about obtaining and using credit. You can follow him on Twitter at @matthewschulz.