Best Cash Back Credit Cards - A Comparison

Most credit card holders prefer cash back rewards than any other perks. If you are not a frequent traveler, it does not make sense to get an airline card. However, if you like to go shopping, you can never go wrong with a card that gives back in the form of cold, hard cash. Unlike points and miles, cash is readily usable so you can spend it for your next purchases. There are even credit cards that let you earn interest if you do not use the cash rebate.

If you have decided that you will get a card that offers cash back, here are the best cards that feature money back rewards:

Capital One® Cash Rewards

This card lets you earn up to $100 bonus cash if you spend the required amount for the first three months of card use. Each year, you are guaranteed that you can receive 50% total bonus cash on all your purchases. The rewards that you can accumulate will not expire and you can easily redeem money anytime you wish. You can even arrange automatic redemption when you reach a certain amount. This card does not require you to pay for an annual fee.

You can find more information about Capital One® Cash Rewards here.

Chase Freedom® Visa

This Visa credit card from Chase Freedom® also frees you from annual fees. As you sign up for this card, you can get $50 cash back for two straight years if you purchase a total of $500 for the first 3 months. Your net rewards each year can amount to almost $400. You can get huge cash back if you pay for your hotel accommodations using your card. This is also applicable to air ticket and partner merchant purchases. Every penny that you spend is equal to 1% cash back. Aside from that, you do not have to worry about interest rates on balance transfers and purchases.

Blue Cash EverydaySM Card from American Express

This is one of the most popular credit cards today that offer cash back rewards. If you have good to excellent credit, you should seriously consider getting this card. The cash back system is straightforward and gives you higher bonuses than the other regular rewards cards. You do not have to enroll for rotating categories since all purchases will be awarded with cash rebates. This also has a referral program where you and your friend can enjoy cash back once he or she gets approved.

Citi® Dividend Platinum Select® Visa® Card

This card comes with revolving categories which you need to sign up for every quarter. In so doing, you can earn huge cash back percentage on top of the 1% cash back on every purchase you make. This card however limits your cash back redemption to $300 each year. Nevertheless, this has no annual fee and you will instantly be rewarded with a hundred dollar bonus upon opening an account.

If you shop regularly, you can save a lot if you use your cash back rewards card. Choose the best card that gives you the maximum money back for each purchase you make.

Master the Art of Saving with Rewards Credit Cards

Saving money should be one of your financial goals. Many people do not know this but you can use your rewards credit card to actually increase your savings. You need to maximize your hard earned points so that you can accumulate more rewards. Become a savvy card holder to positively influence your financial future. In order to achieve this, you need to perform the following:

Have the Most Appropriate Card

At the moment, there are probably thousands of credit cards available. Because of this, you can easily be lost in the sea of options laid out in front of you. The most important step that you need to take to save efficiently is to have the best card. Do not blame yourself if you find this quite difficult to accomplish. Credit card companies spend huge amounts of cash to advertise their products in hopes that they can effectively convince consumers to sign up for their card.

You will most likely find 1% cash back for every dollar you spend. Basically, that is just worth a cent as creditors change it to another name (i.e. miles, points, travel rewards, and so on). To have the best card, go for the one that gives you more than 1%. You might be surprised that there are cards that can let you earn up to 50% more than other regular rewards cards.

Don’t Fall for the “Special Offer” Trap

Some cards will let you earn up to 5% cash back for each purchase you make. There is a catch, however—you can enjoy this offer for a limited time only. Afterwards, the rate will drop to 1%. There may also be spending limits that will make it more difficult for you to receive the 5% cash back. Instead of going for a card that gives you a promo offer on rebates, why not opt for one that gives 1.5% cash back permanently?

Choose Cards with Cash Back Rewards

Points and miles are great if you are a huge spender or a frequent traveler. However, if you are an average person who uses his or her card for weekly purchases, go for a card that gives cash back. Most point systems have restrictions and requisites in redeeming the rewards. With cash back, the prize is pretty much straightforward.

Pay Your Balances in Full Each Month

You can only benefit from a rewards card if you do not carry a balance. Oftentimes, a rewards card comes with higher APR than those that do not have incentives programs. If you do not pay in full, the interest rate will instantly dominate the rewards that you can get.

Don’t Overspend Just to Gain Rewards

This is a universal blunder committed by card holders. The logic goes that if they spend more, they can earn more rewards. Chasing the cash returns or the points can eventually lead to financial trouble. Oftentimes, those who do this often encounter problems with paying their balance in full because their funds could not cover the charges they have made to the card.

Rewards credit cards, when used properly, can significantly help you save money. However, if you mismanage your account, this can lead to financial distress and, eventually, extreme debt.