Cash Back Credit Cards – Which Ones To Get?
If you are looking to get a new credit card, one of the best offers you will find is a cash back credit card. A cash back credit card is an incentive program run by many credit card companies in which a certain percentage of the money spent on a credit purchase is paid directly back to the cardholder. This percentage varies from card to card and usually depends on the type of credit card you are getting. Cash back credit cards are a great way for consumers to earn rewards or cash back on every purchase they make. For many people, this is the most attractive part of a credit card, but there are other benefits to these cards as well.
Most cash back credit cards offer a variety of different options that can give you a good chance of earning a percentage of your spending. Some cards offer flat-rate rewards. Others offer frequent flyer miles or other airmile programs. Still others will give you bonuses for spending spent at certain retailers.
With cash back credit cards, it is possible to earn not only for purchases you make, but also for spending money you buy in specific categories. Most cash back credit cards have gas stations, grocery stores and auto repair shops as their specific categories. These are great ways to earn rewards. By purchasing products in these categories, you will get a percentage off the cost of the item. For example, if you purchase a dollar jar of detergent at a grocery store, you will earn a free bottle.
Some cash back credit cards offer a special category for specific types of purchases. Some offer a flat-rate cash-back card for every purchase you make, regardless of category. Other cards, however, offer a point system whereby you earn a varying number of points based on the dollar amount of each individual purchase. Many people prefer these flat-rate cash-back cards because the points actually add up towards your reward balance.
Cards that feature a flat-rate cash-back card are great for people who do not mind the annual percentage rate. The one-time fee is lower than the average annual percentage rate charged for many cards. The higher rewards rate on these cards are usually limited to purchases within a single category. Grocery stores and gas stations are typically the only ones that offer higher rewards.
A rotating category feature gives you the flexibility to choose between spending in one or more rotating categories. With these types of cards, you earn points for each category (e.g., airline miles for airline miles). As you earn more points, you earn cash back rewards.
There are credit cards that offer higher rewards in relation to the cash back offered. You generally want to compare the APR to the cash back reward offer. This is another important area where the differences come into play. If you don’t pay close attention to this, you may be paying too much for your rewards while you could save with a lower APR.
It is very easy to spend lots of money when you have cash back rewards on your credit cards. The key is to keep your spending under control. If you do, you can use your rewards to build a large emergency fund that will help you when emergencies arise.
Many people get cash-back credit cards with an annual fee. In some cases, you may be able to get away with not paying an annual fee. If this sounds like a deal that you want, you may have to consider a cash-back credit card with an annual fee. Even if the annual fee is not high, you will probably pay more interest on the cash you earn because of the annual fee.
When you are looking for cash-back credit cards, make sure you research whether or not the cards offer any grace periods for balance transfers. Most cards only offer a three month grace period. If you have good credit, you may be able to transfer your balance without paying a fee. Still, you must understand that interest and fees will accumulate during the introductory period. It would be better if you never had to pay any interest or fee at all.
Look for a card that offers a bonus or a point system. Some cash-back cards will match a percentage of your purchases. Others will provide a cash bonus based upon the amount you spend. Still others will give you a bonus based on the cash you deposit into your account. No matter what you ultimately decide, it’s important that you research the various cash-back cards before making a selection.