There are different types of credit cards with rewards in the market but cash back reward credit cards are noticeably a popular choice. Why do many people prefer cash back credit cards? How can you find the best cash back credit card for you?
Cash back credit cards are a favorite among cardholders primarily because the reward program can easily fit with any lifestyle. You do not need to be a frequent traveler to benefit from a cash back credit card. You do not need to own a car to use a cash back credit card either. Indeed, anyone who wants a reward credit card can choose a cash back card because of its simple reward program.
By using a credit card with cash back rewards to purchase the items you need or to pay your bills, you earn something back from your spending. Typically, a cash back cardholder earns 1% cash rebate for every dollar spent using the credit card. This means, you earn $6.25 cash back bonus for every $25 worth of purchase paid with your card. Some cash back credit cards even offer up to 5% cash back points for every dollar spent on special purchases.
Special purchases may be limited to affiliate merchants and establishments so it’s important to be clear about the issuer’s terms and conditions before signing up for a cash back card. You might be tempted to apply for a reward credit card that offers up to 5% cash back, not knowing that you can only earn the maximum value of rebates on “qualifying purchases” or purchases made at selected shops while you don’t get any point on general purchases. Obviously, this is a waste of opportunity to get rewarded.
The ideal cash back reward cash back may offer bigger points on “qualifying purchases” but you should also earn at least 1% on all other transactions. This way, you can be sure that you get rewarded each time you use your credit card for payment.
How can you find the best cash back credit card? First, check the interest rate. Make sure that the interest rate is reasonable even if it is a reward credit card. Second, check out all the other costs associated with the credit card. How much is the annual fee? What about late fees, over-the-limit fees, and other penalty charges?
The best way to compare cash back credit cards in the market is to visit a comparison website. Read the reviews so you can narrow down your choices more quickly. Remember to consider if the reward program complements your personal spending habits and lifestyle. If you have to pay expensive fees just to keep your account active, you should definitely look for a better credit card.
Learn how to manage your account well. Pay off your monthly balance in full to avoid the interest rate. Familiarize yourself with the rules of the reward program so you can maximize the potential to earn more points without spending more than what you can afford.