The content is accurate at the time of publication and is subject to change.
Citi is a Credit-Land.com advertising partner.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.
You probably have several different types of credit cards in your wallet for all needs: a hotel and airline credit cards for your travel, a store credit card for grocery purchases and a rewards credit card for everyday spending. You may use all your card regularly to maximize rewards, or just have them for your credit history. But if none of your credit cards is a cash back credit card, you may be losing on simplicity and flexibility.
Here's why you may want to add a cash back credit card to your card strategy:
- Maximize your purchases. It is well known that cash back credit cards are the most flexible credit cards in terms or rewards earning and redeeming. You can also combine cash back credit cards with other types of cards. For instance, you could complement your travel credit card with a cash back card (like the Citi Double Cash® Card) to maximize your rewards earning in categories where your travel credit card does not earn increased rewards.
- Use cash back when points and miles don't cover you. Even if you use points or miles to pay for your trip, you still need to pay cash for taxes and fees on your award redemptions. Plus, there can be extra expenses like meals, transportation and activities during your trip. These expenses are harder to cover with points or miles, but you can always use a cash back credit card to pay for them and then redeem your rewards as statement credit to cover them.
- Increase cash flow. Being on a limited budget is more manageable with a cash back credit card in times of unexpected expenses. For example, if you have a stash of cash rewards, you can use them when you need to pay a bill or book a trip. You can use a cash back card to build a cushion against hard times.
- Make things simple. Sometimes points and miles are tricky to redeem, it may be hard to maximize your travel rewards. Cash back credit cards are much simpler as in terms of earning as in terms of redeeming rewards. You almost always have an option to use cash back as statement credit with your cash back credit card. No need to check for availability, wait for better price, or browse through numerous rewards charts.
- Get constant value. With a cash back credit card, you know exactly what your rewards will be. The cash back you already earned can never be devaluated (like it often happens with points or miles). Cash is cash, no matter how you look at it.
- Cover infrequent travel. When you do not travel often, am airline credit card or a travel rewards credit card might not be of good use to you. Cash back credit cards give you rewards you can use regardless of your lifestyle. Plus, you get the flexibility of redeeming rewards the way you want, including towards travel purchases when you need it.
You can always benefit from having a cash back credit card in your wallet. Just keep in mind that whatever rewards credit card you have, it will work for you only when you manage all your credit accounts well and never carry a balance on your credit cards.
