Cash Back Credit Cards

Is a cash back credit card best for me?

Cash is king … especially if you can earn cash with a cash back credit card. While it may seem counterintuitive to use a credit card to earn money, you can earn as much as one to five percent on your regular purchases with a cash back rewards card.  If you use your card for gas and groceries, pay all or a significant amount of your balance every month, and like the incentive of gaining a little something in return for your credit card loyalty, a cash back credit card could be a good bet.

Before you get too excited, though, you need to think about how you use your credit card and how well you manage your money. A cash back card works best if you pay your balance in full each month and you have good or excellent credit. You can find cash back credit card offers on this page to find out more about how they work.

Should you try a cash back card?

The most important thing to think about when you try to decide which is the best credit card is your personal spending habits. If you are disciplined enough to pay your credit card bill each month and won't be tempted to spend more on your reward credit card, a cash back card can be a good deal. If you tend to overspend or carry a balance from month to month on your credit card, a cash back card may not be the best idea since these cards sometimes have a higher interest rate than other credit cards.

How to qualify for a cash back credit card

A cash back rewards card is typically one of the many types of credit cards for excellent credit.  Those who have excellent to good credit are most likely to qualify. Not sure about your credit score? Here's how to check it. 

If you have good credit, you may also qualify for a cash back rewards card, but you should check the interest rate to make sure it is not too high in case you need to carry a balance. Generally, the cards with the best rewards are limited to customers with the best credit score.

If you are ready to consider applying for a cash back credit card, compare the cash back credit card offers on this page to see which one is the best choice for you.

How much can I earn with a cash back credit card? >>

How much can I earn with a cash back credit card?

Some credit cards offer big incentives, up to $150 in cash back upon your first $500 spent. Others offer up to 5 percent on various purchases. Sometimes cash rewards can be converted to points, which can then be used for a wide variety of incentives, including retailer discounts or airline miles. This handy list of cash back credit cards is a good place to learn more.

Are cash back credit cards a gimmick? >>

Are cash back credit cards a gimmick?

Nope! The cash back programs are very real, and can reward you with a nice chunk of change with regular use of your card. However, keep in mind that cash back cards can have many limitations and caveats, so it pays to pay attention to that little notice that comes with your credit card statement. Don't forget to take a good look at the interest rates, too; cash back credit cards can have much higher interest rates than a regular card, according to Consumer Reports. Still worried? Check out this article on credit card scams to set your mind at ease.

Read the fine print! >>

Read the fine print!

Cash back credit card comparisons

Each credit card company offers something a little different for cash back rewards, and often the amount you earn depends on what you are buying with the card. Cash back credit cards often give points based on what you are purchasing. A good example of this is the Discover More card, which offers up to 5 percent cash back on gas and groceries, yet only up to 1 percent back on everything else. Other cards might offer high percentages of cash back on a particular type of purchase, but only for a limited time. Choose the right card and pay attention to the ever-changing rules to get the most bang for your buck.  Here are some items to compare when you look at credit card offers with a cash back reward program:

• Choice of rewards: While cash may seem like all you want right now, some rewards credit cards offer you the option of switching your points to things like airline miles, gift cards or gas whenever you want.
• Interest rate: If you plan to pay your bill in full each month, you don't need to compare interest rates, but if you think you might have to carry a balance from time to time, be sure to compare the rates on various card offerings.
• Bonus cash: Some companies offer a bonus for new customers who meet a certain spending minimum within the first few months.
• Percent you can earn: Of course you want the card with the highest percentage of cash back rewards, but make sure these rewards are on the items you buy, like gas or groceries, and that you can meet the requirements to earn the maximum.

For example, Chase credit cards include the Chase Freedom Visa that offers a $200 bonus if you spend $500 in the first three months. You can earn five percent on purchases up to $1,500 per quarter in bonus categories and one percent on everything else with no limits.

Before you choose your cash back credit card, make an estimate of how much you will charge and what you will purchase to figure out which cash back credit card matches your spending pattern best. Then estimate how much you will earn in cash back and compare that with the annual fee you'll pay for the card. Some cash back credit cards do not charge any annual fee.