If you are looking for a credit card, it is always important to take all of your needs into account. Do not forget about the many different features that these cards offer! Finding one with cash back can be especially beneficial if you use your card often enough at stores where they have an agreement in place.
If you are considering applying for a cash back credit card, make sure to take close look at all of the options available. You might think that there is no difference between cards because they both earn money in your pocket but not exactly! Yes, any amount earned from either will result with extra dollars added into your account. But what about how these earnings were made?
Some people enjoy using their rewards points as soon as possible and others prefer waiting it out until they have amassed enough to buy something big-ticket like an expensive vacation or new car. If this sounds appealing then keep reading more on our blog post where we explore some pros and cons involved when redeeming reward points early versus holding them off so long before spending them.
When It All Began
Cash back credit cards made their first splash when AT&T Universal offered its card, which was free of annual fees. This fact alone was fairly new to the credit card world. To top it off, they offered cash back on all purchases made with the card, with the earned rewards going toward paying off the cardholder's phone bill.
Soon after AT&T's revolutionary cash back credit card, the Discover Card started offering a special cash back credit card that provided cardholders with cash back at the end of the year. From here, credit cards evolved to offering outstanding cash back incentives of up to 5% of the purchases made with the card. Although Discover Card is still considered to be one of the best cash back credit cards by many people, Visa and MasterCard also have several cash back credit cards of their own to offer. In today's market, which is very competitive, credit card companies view the money they give to their customers as a business expenditure necessary to get clients and to maintain them.
Analyse Spending Habits
When it comes to choosing a cash back credit card, you should first analyse your spending habits. First of all, you should never use a cash back credit card if you are unable to pay off the balance in full at the end of each billing cycle. Cash back credit cards have a higher interest rate than credit cards without special rewards and incentives. Therefore, carrying a balance on your cash back credit card will result in high finance charges, which will negate the money you earn.
Decide What You Want to Earn
When selecting a credit card, you need to consider which type of reward is right for you. If cash rewards are what make your day, then there's no better choice than the best bank cards that offer up some cold hard currency in exchange for your purchases. However if points and airline miles provide more value due to their flexibility off on-the-go redemption options or ease of earning them through work or other activities, then those types might be worth it too!
A major factor when choosing between two different kinds of credit cards is how much they give back as an incentive after each purchase made with the card; this can either come in points earned towards items like electronics or traveling expenses (reward) -or cash back dollars taken straight out
At the same time, not all cash back credit cards operate the same. If you want a no hassles check to be automatically mailed to you, then be sure to choose a card that does just that. Some cash back credit cards require you to keep an eye on your own rewards and to request a check when the balance reaches a certain threshold. Or, you might want to consider a cash back credit card that simply uses the money you earn to help pay off your credit card balance. This type of credit card does not require any work on your part and can be a much simpler option and a better choice for those that don't have time to spend monitoring the rewards from their credit card.
You also need to consider any fees that might be associated with the cash back credit cards you are looking at. If there are annual fees or monthly fees, chances are that you will not earn enough cash back to make the card worthwhile. The best cash back credit cards have no hidden fees and offer a high percentage of return