Cash back credit cards provide a reward that everybody loves, cash money. You can expect to earn between 1% to 2% depending on the credit card company that you decide to go with. While this may seem like a great opportunity, you’ll want to make sure the choice you make is truly the best one available to you.
Without further ado, let’s dive deeper into these types of credit cards that have many wondering whether it’s the one that’s really right for them or if they need to evaluate other kinds of credit cards
How Cash Back Credit Cards Work
The amount of money that you earn back depends on how much money you spend. Say that you spend $1,000 and your cashback bonus is 2%, you will end up earning $20 back. The cash reward is placed on your card, and a lot of these types of credit cards will provide you with the opportunity to take cash out at the ATM or even the checkout as long as the store supports your type of credit card.
Keep in mind that these types of credit cards are usually for those who have taken the time to build their credit score. It’s not uncommon for a lender to require a high credit score for these types of credit cards, whereas other types of cards may not be as hard to get your hands on.
The Benefits of Cash Back Cards
Many wonder exactly what these types of cards have to offer them, so we went ahead and listed the top benefits of cash back credit cards for you below.
· Certain cashback cards are tailored to specific spending habits.
Knowing how you spend money will help you make the most out of cashback cards, as some are tailored to travel as well as other types of spending. By making sure that you get these extra bonuses, you’ll be able to get the most out of your card.
· Earn a reward that you will benefit from taking advantage of.
Everyone can use a little extra cash in their life, but you’d be surprised how many people fall for reward credit cards that give them rewards that they could care less for. Instead of becoming one of those types of people, why not get cold hard cash?
· Most cash back credit cards eliminate annual fees entirely.
We all know that having to pay a fee every year just to have the convenience of being able to have a credit card is common. However, cash back credit cards usually eliminate this fee and only charge you interest if you don’t pay your balance in full every month.
· Other rewards may be made available, aside from getting cash.
While cash is great, it is always nice to receive other perks from your credit card company as well, and it’s possible with a majority of the credit card companies out there. Certain shopping habits might get you certain perks.
· Some lenders give you cash just for signing up for their card!
There are requirements that usually must be met within a certain amount of time, but it’s not uncommon for financial institutions to entice new cardholders by giving them cash as a way to thank them for doing business with them rather than competing card companies. The requirement is usually something like spending $300 within the first 60 days, just read the fine print to make sure you’re aware of what you need to do in order to get it.
The best way to use these types of credit cards is to pay your balance in full every month, as the interest can be higher with these kinds than it is with other types of credit cards. However, if you keep it paid off and stay wise about your spending, it could provide you with a great opportunity.