Credit Cards

How Do Cash Back Credit Cards Work and How To Choose The Best Cash Back Card For Your Spending Habits

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Credit cards are not only a great way to build credit and gain flexibility when making purchases, but they also allow you to reap great rewards if you find the right credit card with the right cash back credit card rewards to fit your shopping habits and needs. What could be better than recovering some money from your daily expenses with your credit card? It is certainly an excellent idea and it is precisely what cash back cards offer, which is why they are so attractive to some consumers. Let’s see what cashback credit cards are and how they work. Today, the financial market is highly competitive, with hundreds of bank and card options. For this reason, banking institutions offer various benefits and savings options to considering customers so that they can apply for a credit card with them. One of the most popular offers is the cash back option, which gives you money back when you shop. However, with so many cash back credit card options available, it can be difficult to find the card that has the best rewards for your spending patterns and needs. It is with this thought in mind that we have created this article for you, to help you narrow down the best cash back credit card that will give you the most money back on all your current spending habits.

How Common Cash Back Cards Work

Cash back credit card provide the opportunity to earn money by using them to make purchases. Cash back is usually in the form of a percentage of what you’ve spent, depending on how much you spend per month. For example, if you use a cash back credit card to buy $200 worth of groceries at your local grocery store and the cashback credit card offers up 3%, then at the end of the year (12 months), that’s about $6.00 in rewards just from buying groceries! With this being said, the best way to make cash back credit cards work for you is to make sure your using them to make purchases that you would normally needs to make regardless such as food, paying a bill or utility, fuel and every day common necessities, this way your earning money back on purchases you would have needed to make regardless rather than buying things you did not really need and going into debt. cash back credit cards are excellent choices for people who love to pay with plastic and get rewarded for it! If this sounds like something that interests you, continue reading as I share tips and tricks to get cash back credit cards and earn more money in the process!

Typical Cash Back Rules / Guidelines

Cash back cards provide rewards for every purchase you make, including gas, groceries, restaurants, travel expenses and even utilities. Cash back is generally 1%-5% of what you’ve spent depending on how much you spend per month. Cash back percentages are based off of yearly purchases (i.e., $200 cash back on a credit card that has 5% cashback on gas will only accumulate $10 at the end of the year). Cashback cards typically come once or twice per year (January & July) so make sure to take advantage of these opportunities by spending within your budget. Cashback cards are free! Cashback programs have become increasingly popular over the past several years. Cashback credit cards, on average, allow you to earn between 1%-5% cash back every time you purchase something with your cash back credit card. Cash back is money you get back for making purchases with a Cashback credit card . It’s as simple as that!

Numerous Types of Cash Back Cards

There are lots of different kinds of cash back credit cards out there but here’s just a few:

  • AIRLINE Miles Cash+ Back Cards:  Every Purchase = AIR MILES® reward miles One of the most important things to do when applying for an airline mile-earning credit card is make sure it’s not only tied a specific airline carrier (i.e., it’s not just an AMERICAN AIRLINES Cash Back Card -you want to be able to earn miles on all the different airline carriers-such as Delta Airlines, United Airlines, etc.) and not only serves as a great cash back credit card, it also serves as an excellent travel credit card as well. Cash back cards that earn airline miles are great because you’re literally earning money for every purchase. Cash back rewards are paid out in the form of reward miles and it’s your choice whether or not you want to redeem them for flights/travel. Cash back cards allow you to pay off your credit card over time without interest (it is recommend that if you do carry a balance make sure you pay it off within 7 months).
  • LOW, ROTATING CATEGORIES: Every Purchase = Cashback in specific categories cash back credit cards offer you increased cash-back percentage in certain categories such as gas, grocery stores, etc. Keep in mind these increased percentages do not last forever (usually 6 months to 12 months) cash back credit cards with rotating categories usually come with a Cashback rate anywhere from 1%-5% (which typically applies to the category that the cash back credit card is offering). Cash back in rotating categories is subject to change at any time.
  • CASH BACK CREDIT CARDS WITH ANNUAL FEE: Every Purchase = Cashback points which can be redeemed for either cash or airline miles If you spend over $500 on your cash back credit card each month, it’s actually worth it (in some cases) to get an annual fee cash back credit card if your circumstances meet the requirements for the maximum earnings since this will usually equal a lot more than the annual fee cost. Annual fees tend to range between $59 and $450 so make sure you know what kind of benefits come with the card you choose.
  • NO TRANSACTION FEES: Get Paid without ever paying money to get cold hard Cash! No Fee cash back credit card are basically cash back cards without transaction fees. They don’t charge you anything for the privilege of using their card so they can pay you your cashback every month interest-free . You earn cash back credit card benefits without having to worry about how much it will cost you in terms of transaction fees, annual fees or any other kind of fee that gets in the way between you and your money!
  • REBATES: Get Cash with Your Next Purchase If a Cash Back Credit Card offers rebates, this means that on certain items (such as cell phones) when you purchase them from a participating retailer, there is set amount that the retailers agree to pay the credit card issuer for each purchase made. The more purchases you make, the more money they get from these rebates (this is how Cash Back Credit Cards work). Cash Back Credit Cards are designed to help boost your account balance by offering a percentage of every purchase back as cash in your pocket. Cash Back Credit Cards give you a rebate directly into your Cash Back Savings Account.

Common Requirements for Card Issuers

Cash Back Credit Cards are a great credit card to use if you want to begin building up your Cash Back Balance right away which can be used for many things such as vacations, holidays, cash back savings account or even starting an emergency fund. Cash Back Credit Cards do typically have an introductory offer so you can earn Cash Back in the first few months. Cash Back Credit Cards do not have an annual fee under most circumstances, however if there is an annual fee it will typically be waived for the first year. Cash Back Credit Cards are one of the best credit cards to start using to begin building your Cash Back Savings Account when you don’t have any or very little Cash Back Rewards. Cash Back Credit Cards can also be used as an introductory credit card and then later down the road you can use a Cash Back Card that is designed with better Cash Back Rates/Offers. Cash Back Credit Cards do not usually have an intro APR, Cash Back Rewards Balance does not expire and Cash Back Credit Cards are offered by many top banks.

Building Up Your Credit, There’s Usually Room for Improvement

Cash Back Credit Cards can also be a great credit card to apply for when a customer is building up their credit history. Cash Back Credit Cards typically have an intro 0% introductory offer or no annual fee. Cash Back Credit Cards typically accept applicants who have a fair or average credit score but do not accept applicants with poor credit scores. Cash Back Credit Cards are best for customers who know that they will be using their Cash Back Rewards Balance in the future and want to begin building up their Cash Back Savings Account right away by earning Cash Back on every purchase. Cash Back Credit Cards are also the best credit card to use for Cash Back Cash back Rewards on groceries because customers earn Cash Back in all of your weekly supermarkets. Cash Back Cards do not typically have an intro 0% APR. Cash Back Credit Cards are great cards to apply for if you want to build up your Cash Back Savings quickly. Cash Back Cards typically have a Cash Back Balance Limit of $2,500 or higher which depending on the Cash Back Rate you are offered can build up your Cash Back Savings in only 1 month!

Our Final Thoughts and Concluding Video 

The reasons we feel cash back credit cards are the best choice for you are plentiful. The above mentioned benefits are just a few of our favorite features, but there’s much more to explore! We hope this article has helpful to you and you now have a better understanding of how, when and why to choose a Cash Back Credit Card that is right for your needs. If you’re still not sure which card will suit your lifestyle or spending habits, don’t hesitate to contact us! Our team members would be happy to help find the perfect fit for what matters most – YOU.

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