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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 a 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 $3.
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 requirements. As a rule, 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.
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've earned is 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 give you a 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 cards may offer tiered rates of cash back depending on where you spend most. 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. These categories change every quarter. This means that during these three months you will earn increased and usually very high rewards on certain purchases and regular rewards on all other purchases. Usually you need to register each quarter to get rewards.
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, at 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.