Cash-back credit cards are a great option if you’re looking to reduce your monthly expenses and earn rewards for purchases. They can give you a nice boost in the form of cashback that you can redeem for different types of items. If you don’t spend much money on your credit card, you should consider these cards. However, it’s important to know what the terms of the cash-back programs are. Investopedia has compiled a list of the best cash-back credit cards to help you make the right choice.
Cash-back credit cards typically offer a set percentage of your spending as cash. A typical rate ranges from one to two percent. If you spend $1,000 a month on your freedom flex credit card, you’ll earn $10. More than half of the rewards credit card companies offer a cash-back option. The benefits vary, but a good cash-back card can cover your expenses, help you build your savings, and improve your credit.
Choosing A Cash-Back Credit Card:
The most important thing to consider when choosing a cash-back credit card is the annual fee. Most people pay no annual fee, but this should be worth it if you spend a lot on certain categories. It’s best to choose a card with a low foreign transaction fee if you often travel abroad or shop on an international website. Most cash-back credit cards offer a sign-up bonus, but you should check that it covers your regular spending.
APR On Cash-Back Credit Cards:
The APR on cash-back credit cards is usually higher than average. If you don’t pay your bill on time, you’ll be paying a higher interest rate than you would have earned with a regular credit card. In addition, the best rewards cards often have a high annual fee, which can quickly wipe out the cash rewards. This means that it’s important to make sure that you’re paying off the balance each month to earn maximum cashback.
Consider the Type of Spending:
When choosing a cash-back credit card, it’s important to consider the type of spending you’re likely to make. If you spend a lot of money at the supermarket, you may want to choose a cash-back credit card that earns 6% cashback on groceries. If you spend money at gas stations, you should consider a flat-rate cash-back card. If you don’t use gas often, look for a card with lower petrol mileage.
There are many cash-back credit cards that give back a certain percentage of your purchases. For example, you can get 1.5 cents per dollar spent with a credit card with a 1.5 percent cash-back rate. These rewards can quickly add up on an everyday spending card. If you spend a lot, you’ll be rewarded with the money you’ve earned. There are also cash-back cards that can be automated.
Variety of Benefits and Rewards:
The best cash-back credit cards offer a wide variety of benefits and rewards. Some of them give 2% or more on all purchases. Others offer rotating categories that give you higher amounts. Almost all cash-back credit cards have annual fees and a high-interest rate. You should compare the APR of each card before deciding to apply for one. The fee will affect your monthly payments. Once you’ve decided on the best cash-back credit card for you, make sure it fits your lifestyle and budget.
Cash-back credit cards offer a range of benefits. For example, you can use the cash you earn as a gift card at a popular store. If you don’t want to spend the money on gift cards, you can donate the money to a charity. Some cash-back credit cards even let you choose the amount you want to spend on a category. Some of these cards have rotating categories, so you can plan ahead.