Other Free Encyclopedias » Online Encyclopedia » Encyclopedia - Featured Articles » Featured Articles: Lake Havasu Homes For Sale - Searching for Lake Havasu Homes for Sale - Homes for Less than $100,000 to Cell Phone Compare - The Great Smart Cell Phone Compare - Droid

Best Cash Back Card - The Best Cash Back Credit Card - How to Choose the Best Cash Back Card

bull cards annual groceries

While the annual percentage rate is the number one factor for people when deciding on a credit card, credit card rewards are beginning to play a larger role in the choice. Several different types of rewards are offered depending on the exact details of the card. Frequent flyer miles and other point-based rewards have remained extremely popular, but more and more, consumers are looking into cash back reward cards.

With a cash back card, it is possible to save up to 5% on various types of purchases. Some cards limit the purchases for which they offer cash back, and other cards have either unlimited cash back buying potential or a varying cash back rate depending exactly what is being bought. Some of the more popular and the best cash back cards are those offering discounts on fuel, restaurants, groceries, travel, or pharmaceuticals.

The cash back earned is paid out through different methods. Some cards accumulate the cash back until the end of the billing cycle, and then, it is applied as a credit onto the account. Other cards will accumulate the cash back for an entire year and cut a check for the amount at the end of 12 months. Some newer cash back cards put the money into a savings plan for your children’s college fund. A few are designed to help homeowners by going toward paying down the principal on their mortgage. At least one reward card allows the cardholder a choice of cash back, points, frequent flier miles, or gift certificates.

How to Choose the Best Cash Back Card

When deciding on the best cash back card for you, a few considerations can make the choice much easier. First of all, it is important to choose a cash back card based on your regular spending habits. It helps to draw up a budget or chart of your actual spending over the past couple of months. Find out how much you spent on gasoline, groceries, eating out, and travel. Once you have hard numbers, you can apply the cash back rate of various cards to the amounts. For instance, if you spend $400 per month on groceries and $300 per month on gasoline. A 5% cash back card for gasoline would yield a greater reward ($15) than a 3% cash back card for groceries ($12).

Another factor to consider is if the card has an annual fee. Sometimes the benefit of the card is worth the annual fee. Many times, a card with no annual fee will have smaller rewards. Whatever the annual fee is, it should be divided by 12 to figure out the cost per month. This can then be applied to your budget chart to figure out realistic discount amounts.

Many cash back cards have spending limits for the rebates. For instance, the card can offer a 5% discount on the first $1000 spent, and then, the cash back either drops to a lower rate, such as 3% or 1%, or it drops off altogether. Some types of cards use a deductible system. Some types of American Express cards give cash back only after a certain amount is spent, for example, after spending $6,500 on groceries, everything over that amount is subject to the cash back rate.

The Best Cash Back Cards

Discover More Card
• 0% APR for 6 months
• 5% cash back on rotating categories such as fuel, groceries, travel, and restaurants
• 0.25% – 1% everyday, unlimited cash back
• No annual fee
• Regular APR: 11.99% to 20.99%

Chase Freedom Visa
• 5% cash back on rotating categories
• 1% cash back on all purchases with no limit
• Extra $100 cash back for $799 of purchases in the first 3 months
• Regular APR: 12.99% to 22.99%

American Express Blue Cash Card
• 0% APR for 6 months
• Up to 5% cash back on purchases
• Regular APR: 17.24% to 21.24%

Casino Gambling Internet Online - The Best Casino Gambling – Internet/Online - Vegas Casino, Slots Plus, Millionaire [next] [back] Casablanca Morocco Hotels - The Best Casablanca, Morocco Hotels - Maamoura Hotel, Le Royal Meridien Mansour, Hotel Riad Salam

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or