Choose the best cash back card to get the most value from your money.
Basically, a cash back credit card offers the same benefits as a traditional credit card while allowing you to earn points for each transaction. These points can then be redeemed for cash, merchandise or vouchers. So, how do you choose the best cash back credit card to suit your needs and lifestyle? Here are some tips to consider.
How to Choose the Best Cash back Credit Card: Some Factors to Consider
- Credit score range. Choose a card that is within your credit score range to increase your chances of getting approved.
- Cash back percentage. Since not all cards are created equal, you need to find which cards offer the highest cash back percentage. Some may only offer 1% cash back on purchases while others have more generous offerings so do your research before you make your decision.
- Cash back structure. Different cards have different cash back structures. Some allows you to earn a flat percentage on all your purchases while others offer tiered rates. Still others offer different rates for different items (groceries, home improvement products, gas, etc.).
- Sign-up bonus. There are cards that offer several hundred dollars just for signing up and spending a specified amount for the first few months. While this can be a great way to maximize your benefits, you should not make this the most important factor when choosing a cash back card.
- Annual fee. As a general rule, you should only choose a card that charges an annual fee if the benefits clearly outweigh the cost. However, while it may seem logical to choose a card that does not charge an annual fee, you should always keep your options open since some fee-charging cards offer more attractive cash back benefits.
- Unlimited cash back capability. Do not settle for a card that puts a cap on how much you can earn. Choose one that lets you earn as much as you can.
- Easy redemption. Your chosen card should make it easy for you to redeem your earnings.
- There are a lot of factors that you need to consider when choosing a cash back credit card so be extra vigilant when doing so. Use these factors to narrow down your options and settle for one that is closely aligned to your lifestyle, particularly to the things you buy and the places you shop. Do this and you can surely get the most benefits out of your cash back credit card.