Tips on evaluating cash back credit cards
Posted in: Credit Cards
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What to look for in a cash back credit card
A cash back credit card is a type of reward credit card that allows cardholders to earn cash rewards or rebates for purchases made with the credit card.
But not all cash back credit cards are created equal. In fact, most cash back cards differ greatly in many respects. Before applying for a specific cash back credit card, take a few minutes to read over the terms and conditions of the offer.
How is cash back earned?
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.
In what form is the cash back redeemed?
Some cash back cards offer multiple options as far as the exact form of your rewards. Others do not offer many options.
- Are you able to get actual cash in the form a check made out to you?
- Will the cash back show up on your statement as a credit?
- Do you have to redeem the cash back in the form of gift cards?
How is cash back redeemed?
Some cards require you to request your cash back, while other cards have automatic systems.
- Do you have to request your cash back reward?
- Are your cash back rewards automatically sent to you once a certain amount is reach or a certain amount of time has passed?
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