What is a cash back credit card? - Cash Back Cards FAQ

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Credit Card Applications » Questions » FAQs » Cash Back Cards » What is a cash back credit card?

What is a cash back credit card?

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A cash back credit card is a card that offers a cash back reward program as an incentive. Essentially, it means that the percentage of the amount spent on purchases is returned to you. This percentage may differ depending on the terms of a credit card issuer that produces your card. For example, the amount of your cash back is 3%. It implies that if you spend $100 with this credit card, you’ll earn $2.

Cash back credit cards often have welcome bonus offers. Such offers are a pleasant addition to the overall rewards program, however, you can usually get them if you meet certain requirement. Mostly you have to spend a certain amount during the first months after you get the card (usually 3 or 4 months). The usual bonus offer is somewhere around $100 and bigger offers are exceptional and noteworthy. As for the amount of cash back you are going to earn, cash back cards work in different ways, and the size of the reward bonus can be different.

Cash Back Credit Cards for Good and Excellent Credit Hstory:

Card Name: Earning Rewards: Rewards Bonus: Annual Fee:
Discover it® – Cashback Match™ Earn 5% cash back at Amazon.com and Target now through December 2017, on up to $1,500 in purchases when you activate. Plus, 1% cash back on all other purchases. INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically. $0
Barclaycard CashForward™ World Mastercard® Earn unlimited 1.5% cash rewards on every purchase Get a $200 cash rewards bonus after you spend $1,000 in purchases in the first 90 days after account opening $0
Discover it® chrome 2% cash back at restaurants & gas stations on up to $1,000 in combined purchases every quarter INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically. $0
Citi® Double Cash Card – 18 month BT offer Earn cash back twice on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. $0*

See more cash back cards>>

Besides, you need to know how you can redeem your cash back. Banks have different rules of redeeming cash back and you should always check what ways of redeeming are allowed for your card. Namely, the most popular ways are the following:

  • Bank Deposit: the cash back you earned it put onto your checking or savings account. Some banks need you to accumulate a minimum amount, some don’t. Check terms and conditions of the credit card’s issuer to see how your card works.
  • Statement Credit: this way you can apply your cash back to your credit card balance.
  • Gift cards: some issuers allow you to buy gift cards from popular retailers to redeem your cash back.
  • Charitable donations: some credit card companies allow you to donate some or all of your cash back to the charity of your choice.

As for the amount of cash back you are going to earn, cash back cards work in different ways. Some cards like the Barclaycard CashForward™ World Mastercard® give you the fixed amount of cash back for all purchases. This is convenient if you can’t be bothered with choosing which card to take at which store. On the other hand, some credit card may offer tiered rates of cash back depending on how much you spend. For example, the Discover it® chrome card gives you 2% cash back at restaurants and 1% cash back on all other purchases. Such cards allow you to earn more on different categories and adjust your card to your type of spendings.

Some cards give you big rewards on rotating categories. This categories change every decade. This means that during this decade you will earn increased and usually very high rewards on certain purchases and typical rewards on all other purchases. Usually you need to register each decade to get rewards. A good example of such a card is the Discover it® – Cashback Match™, which gives you 5% cash back on rotating categories and 1% cash back on all other purchases.

Credit cards also differ by the requirement for redemption. Some only allow to redeem cash back as soon as you accumulate a certain amount, some make you wait for a certain period to pass, some allow you to redeem straight away.

Cash back credit cards are an individual choice, but if you compare all the options, you will be able to answer the question ‘what is the best cash back credit card’ for yourself and choose the one that suits your spending habits.

Here, on Credit-Land.com you can choose from a large pool of cash back credit cards, compare them and apply for a cash back credit card Even if you have limited credit history, you can still find cash back credit cards just for you.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
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INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically.
For Excellent, Good Credit
Get a $200 cash rewards bonus after you spend $1,000 in purchases in the first 90 days after account opening
For Excellent Credit
Receive 1% cash back on eligible purchases, terms apply
For Fair Credit