What features should I look for in a cash back card?

What to look for in a cash back credit card

Cash back credit cards all give cash rewards for purchases made with the card. But there are differences from card to card. Not all cash back credit cards are the same.

Before applying for a specific cash back credit card, take the time to read over the terms and conditions. Look for certain features that may make the card more desirable.

• Does the credit card offer incremental cash back percentages? Some cash back credit cards don’t give the highest cash back until a certain amount of purchases have been made. Other cards lower the percentage of cash back given after a certain dollar amount of purchases is reached.

• Is there a yearly cap on the amount of cash back that you can earn in a year? Some, but not all, cash back credit cards have a yearly cap on earnings.

• Are there certain places where you can earn a larger cash back percentage on purchases (i.e. grocery stores or gas stations)? Knowing this can put extra cash back in your pocket with little effort.

How much cash back can I earn?

How much cash back you can earn with your credit card depends largely on the terms and conditions of that specific card offer. However, many cash back credit cards have a couple of things in common.

• First, many cash back cards only allow cardholders to earn cash back on purchases made with the card. That means that cardholders do not earn cash back on cash advances and balance transfers made with the card.

• Also, many cash back credit cards not offer higher percentages of cash back on purchases made at certain locations, such drug stores or other select locations. This additional cash back can add up if you make frequent purchases at a location that is included in this type of offer.

Before applying for a specific cash back credit card offer, you can estimate your potential earnings by taking these two points into consideration.