Cash back credit cards offer consumers a great way to get money back every time they shop. If you’re considering getting one, compare several cash back cards before you settle on one.

Credit card rewards offer an excellent way to get value back every time you shop. But with so many types of rewards credit cards, it’s not always easy to know which type is best for you. The simplest and most straightforward form of credit card rewards is cash back. Since you can use cash for anything you want, it’s often preferable to complicated points and miles programs. If you’re considering a cash back credit card, here’s what you need to know.

Cash back credit card

How To Choose A Cash Back Credit Card

What are the cash back rewards? As the name suggests, cash back credit cards offer cardholders cash back on everyday purchases, typically in the form of a statement credit, direct deposit, or a paper check. There are three types of cash back credit cards: flat-rate cards, bonus rewards cards, and rotating bonus rewards cards. Flat-rate rewards cards

With these cards, you’ll get a flat rewards rate on all of your purchases. Among the best cash back credit cards, the rate is 1.5 percent or higher. Flat-rate rewards cards are best for people who want a straightforward rewards program and for those who don’t spend a lot in any one specific spending category.

Bonus rewards cards

Bonus rewards cards offer extra cash back on certain spending categories, such as groceries, gas, or dining. Depending on the card, you can have one bonus category or many, and the base rate for non-bonus spending is typically one percent.

Bonus rewards cards are excellent for people who spend a lot in certain areas of their budget. But it can get complicated if you have to remember when to use that particular card instead of cash, debit, or another credit card.

Also, the one percent base rewards rate isn’t ideal, especially if most of your spending doesn’t align with one of the card’s bonus categories. Rotating bonus rewards cards These cards offer a high rewards rate on certain categories that rotate every three months, giving cardholders a chance to earn bonus rewards on several different categories throughout the year.

Other ways to earn cash back

Depending on the cash back credit card you choose, you may get a chance to earn cash back on more than just your everyday purchases. For starters, many cash back credit cards offer sign-up bonuses. You usually need to spend a certain amount in the first few months to qualify for it, but the minimum spending requirement is rarely more than $1,000.

Also, some credit card issuers have shopping portals or cash back offers. For example, BankAmeriDeals is a program that allows you to earn extra cash back when you activate deals and shop online through Bank of America’s website.


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