What is a cash back credit card?

Tuesday, June 23rd, 2009

What is a cash back credit card?

About cash back credit cards

Cash Back credit cards give cash rewards to cardholders for making purchases with the card. A cardholder accumulates cash rewards based on the dollar amount of his/her purchases with that particular credit card over a period of time.

A typical cash back rate hovers around 1%. However, some cards offer a higher cash back percentage with increased usage and some offer a higher cash back percentage at select merchants or locations.

It is important to keep in mind that many cash back credit cards offer cash back on purchases made with the card but do not offer cash rewards on balance transfers or cash advances.

Each cash back credit card is a bit different, so be sure to read the terms and conditions to find out what cash back percentage you can expect, whether there is a limit on how much can be accumulated in a year, etc. Be sure to thoroughly look over the terms and conditions for each specific card.

Because some rewards programs can be costly for credit card companies, some cash back credit cards come with an annual fee.

Comment on this FAQ

Consumers putting their money in different places now

Credit Card News

Consumers putting their money in different places now

A recent report from credit giant TransUnion took a look at where people are now putting their money and had some interesting findings. Read more

Credit Card Tips

Double-cycle billing explained

Double cycle billing is a method of computing finance charges that is used by some, but not all, credit card companies. Read more

Credit Card Calculators

Credit Card Payoff Calculator
Credit Card Payoff Calculator

Use this calculator to see what it will take to payoff your credit card balance, and what you can change to meet your repayment goals.

you are here ›› homefaqcredit cards
Frequently Asked Questions - Credit Cards