Compare the Best Cash Back Credit Cards
Credit cards often provide more than purchasing power. You can earn gift cards, free nights at hotels, free flights, and some give you cash. They put money right back into your pocket. Instead of having to keep track of point valuation, cash back credit cards, let you know what you’re getting with your cash back in terms of redemption options and value.
Cash back credit cards are a great option if you’re looking to earn rewards that you could use for anything.
Find the Right Cash Back Credit Card for You
With different cash back card options available in the market, it can be challenging to narrow your search for the right card. To find the right card, you’d want to start by understanding which type of card you want. Here are the most popular types.
Flat Rate Cards
Flat rate credit cards typically offer a constant percentage back on all your purchases. This card perfectly complements your everyday spending since you don’t have to switch between specific bonus categories. However, this card may limit your earning potential in some popular categories like travel or dining.
Tiered Cards
These cash back cards give you boosted cash back on certain spending categories. For instance, a card would offer 6% cash back on select subscription purchases, 3% on filling at specific gas stations and 1% on anything else. Although these cards can help you maximize rewards for categories you spend so much on, you may not earn a bonus for each purchase.
Rotating Categories
These cards require careful selection since select categories will reward you a specific rate for a certain period, say a 2% cash back for spending $ 1,500 each quarter. You must register for bonus categories quarterly as well as pay attention to where and when you make the purchases.
Benefits of Cash Back Credit Cards
The main advantage of cash back credit cards is that they give you a rebate for every dollar spent. Other benefits include:
No Annual Fee
Most cash back credit cards have no annual fee, so that you won’t trade some of your rewards for a fee. Besides, you can keep your card open fee-free even when you choose to use a different card in future. This can be worth it since a more extended credit history will boost your credit score.
Sign-up Bonuses
Cash back credit cards will also give sign-up bonuses worth several hundred dollars for achieving a minimum spending requirement in the first few months.
Shopping Perks
Several cash back credit cards also provide benefits that may save you money or safeguard your purchases. Some of these perks include return guarantees, extended warranties, lowest advertised price match, and more. Be sure to go through your card’s benefits guide to understand what you’re entitled to.
Some Offer 0% APR
Some cash back cards also offer 0% APR (annual percentage rate) on balance transfers or purchases for a limited period. This way, you can settle an existing debt without paying interest.
Cash Back Credit Cards FAQs
What Is A Cash Back Credit Card?
A cash back credit card is a type of rewards card that lets you earn some cash as a small percentage of your purchases. The amount you get back varies among cards.
How Do Cash Back Credit Cards Work?
Cash back cards rebate a percentage, typically between 1% and 5%, of each purchase. The rewards accumulate in your account as cash back, which you may later have deposited in your bank or credited to your statement. Cash back cards give a more straightforward way of redeeming and earning rewards when compared to miles and points.
What Rate Can I Get with Cash Back Credit Cards?
The rate you get back for every dollar worth of purchases spent on your card varies from 0.5% (0.5 cents per dollar spent) up to 4% (4 cents per dollar) on different purchases. Occasionally, the rate would be more for certain spending categories.
Can Anyone Get A Cash Back Credit Card?
As with most credit cards, you’ll need a good credit rating to be approved for a cash back credit card. You’d also want to get this type of card if your spending pattern is aligned to specific categories.
How Do I Compare Different Cash Back Credit Cards?
Before signing up for a cash back credit card, you’ll need to compare your options beforehand. Besides, you need to ensure you’re more interested in getting some cash back instead of any other type of rewards. For any card you consider, ensure you have the discipline to score rewards without accumulating debt.
Compare different card sign up bonuses, rewards schemes, and other perks to ensure you get the best match for your needs. With proper research and comprehensive comparison, you can find a card that matches your rewards preferences and spending style.
