THIS PAGE MAY CONTAIN AFFILIATE LINKS. MEANING WE RECEIVE COMMISSIONS FOR PURCHASES MADE THROUGH THOSE LINKS, AT NO COST TO YOU. PLEASE READ OUR DISCLOSURE FOR MORE INFO.
Cash back cards are the kind of credit cards that offer rewards in the form of cash or rebates when you make purchases on the card.
As a result, each purchase basically comes with a discount, usually of 1 to 2 percent of your purchase.
If you’re interested in a cash back credit card, read on to learn more about your options and the many features of the cash back cards that are available.
Once you decide what you’re looking for in a cash back card, CreditShout has plenty of offers from our partners to choose from. We give you an easy way to compare offers and apply!
A cash back credit card offers rewards in the form of a cash back program. What varies is the way that the cash back comes to you:
You may get the cash back in the form of a credit on your statement, or perhaps as a direct deposit into your bank account.
Or the credit card company might have a special online store where you can spend your rewards on many different items.
What all of these cash back credit cards have in common is that you get a percentage of cash (or cash value) back on each purchase.
If you use your card responsibly and keep the balance paid down, you could earn a nice amount of cash back on items that you’d buy anyway. That’s like getting everything at a discount!
With the cash back cards that give you rewards points that you can spend in an online store, you can allow the points to accrue for months or years so as to make a larger purchase and maximize the value.
Whichever form of cash back card you choose, the cash back or value of the cash back can really add up over time.
Who should apply for a cash back credit card?
The better your credit is, the better the rewards on a cash back card -- but these rewards cards are even available for those who are applying for their first credit card.
If you’re really new to the world of credit cards, one that simply provides cash back as a percentage of each purchase is an easy way to learn about rewards cards and how they work.
Even those who have been using credit cards for many years already can appreciate a cash back rewards card, though. And those who have excellent credit have plenty of options to choose from when it comes to rewards cards.
Fast facts about cash back cards
When you’re ready to start shopping for the best cash back rewards credit cards, here is some more information to keep in mind:
●Cash back cards may come with or without annual fees. The cards with the highest rewards also tend to have higher fees, so keep in mind how that will affect how you use the card.
●Often, a credit card company will partner with a specific retailer to offer extra cash back when you shop there using your card -- often within a limited time frame. Keep an eye out for these deals!
●Even with the cash back incentives, make sure the APR and annual fee (if any) are something you can live with before you apply. Be sure to compare offers before you apply.
●Cash back cards are best for people who don’t tend to carry a balance on their credit cards. That’s because the APR is usually higher on cash back cards, and whatever you earn in cash back rewards will be much less than what you pay in interest if you carry a balance for a long time.
●Many cash back credit cards offer a bonus for signing up, so watch for those deals when comparing cards! Other introductory offers include deals such as 0% APR for a year on balance transfers.
●If you don’t plan to use your rewards soon, check your cardholder agreement to make sure they don’t expire after a certain amount of time.
●A late payment could cause you to lose whatever cash back you’ve accrued for that month, so be sure to pay on time!
Cash back card or rewards credit card -- how to choose?
The best deal for you really depends on your lifestyle and how you use your credit cards. If you travel extensively, a card that offers airline miles as rewards might be a better choice.
Some cards offer rewards in the form of gift cards to restaurants or retailers, so take a look at the companies the card company partners with when making your decision.
But if you just want cash back that you can spend anywhere, the cash back credit card is the best choice as long as the APR and fees make sense.
Cash back cards are generally available for those with good or excellent credit, and are a great option if you don’t carry a balance.
Just carefully compare each cards features before you apply to ensure you’re getting the best card for you.