When you are going to spend money on a credit card, a good way to do it is to use a cash back credit card. These are great cards to help you gain the purchases you need and get money back just for spending.
You can find a large variety of cards on the market to fit this purpose and the best thing you can do is create an opportunity for yourself to find as many as you can and check them out. It is best if you can do a side by side comparison for them.
There are several things you should know about cash back credit cards before you start looking:
- You have to pay the cards off in full each month.
- Some of the cards have annual fees or other fees but you can find them without fees at all.
- There are cards that offer cash back for purchases but some offer reward points instead.
- Each card will have a different reward percentage, interest rate and APR.
With these things in mind it is easier to find the card that is right for you. Some tips to finding the right card are:
Check out the card offers that come to your house — most of these will have reward points or cash back as part of a promotion for new card owners. Sit down with a pad of paper and write down all the incentives they offer against other cards. Write down the APR and the interest rate.
Understand that a cash back credit card is a financial tool not a life raft — those people who are most successful with these types of credit cards are those people who understand how to manage their credit. This is important to know when you first get your card.
Choose one that meets your needs — if you only want cash back then make sure that this is what the card company offers. Many offer incentive reward points instead of cash back and some offer both. If you run a business that spends a lot on gas, a cash back business credit card from American Express can really pay off. But keep in mind, there isn’t one card that’s a perfect match for every situation. You decide what is most important to you.
Check out the best offers on the Internet — there are a number of sites that talk about the best cash back cards and they will show you the cash back incentives. This is a great way to look at several cards at a glance.
When you’re trying to find a card check your spending history — if you have other credit cards take a look at your statements to see how and what you have bought in the past. Check it against what you might purchase with a cash reward card. If they match, this might be one worth considering.
Check to see whether the card offers a first purchase bonus — many cash back credit cards give you a bonus for signing with them. Many offer a $50 bonus on your first purchase along with the other rewards.
Finally, these cards are tempting to use more than a few but many experts say to choose only two reward cards.