Why Cash Back Is Still the Most Rewarding Credit Card Swipe

iQuanti: Imagine earning a discount on every single purchase you make using your credit card. From bills to groceries, fun nights out to necessities, the best cashback cards will put a percentage of every purchase you make with your cashback credit card back into your pocket.
How do cashback credit cards work?
Cashback credit cards are a type of rewards credit cards that gives you rewards based on eligible purchases that you make using the card.
For example, you might see an offer for 2% cash back on gas, 3% on groceries, and 1% back on everything else. Some companies offer rotating bonus rewards categories, so in one quarter you get 5% back on groceries, in another quarter you get 5% back on gas, etc. Some offer flat cash back rates on all purchases, and others offer combinations of both.
Redeeming cash back is straightforward
Sometimes when it comes to rewards, if you don’t use them, you lose them. And it can be hard to use your rewards if they only apply to a certain place where you don’t normally shop. But cashback rewards are cash—they can be used anywhere.
Cashback rewards can save you money
If you pay off your balance in full every month, and always redeem your cashback rewards, you will effectively save money by making purchases on your credit card.
How to find the best cashback credit card for you
The best cashback credit card for you will offer a cashback incentive on categories that you regularly purchase. For example, if you know you tend to spend a lot on gas, look for a credit card that offers a high cashback rate on gas. There are other factors to consider as well, such as:
Annual fee
Some cash back cards come with an annual fee, and some do not. Either way, you should calculate how much you expect to earn in rewards throughout the year to determine if it will offset the annual fee.
Eligible purchases
Some credit cards do not offer rewards on certain purchases. If you’re looking to maximize your savings on all your purchases, look for a credit card that offers rewards on “all purchases” and understand what restrictions they have, if any.
Cash back limits
Some credit cards have cashback reward limits, where you can only redeem up to a certain amount each quarter or year. Others have limits on how many dollars in purchases may be subject to cashback. These are both separate from your credit limit, which is usually determined by your credit score.
The best cashback credit cards have no limits on how many rewards you can earn, but you will still typically be limited on how much you can spend by your credit limit.
Redemption program
Make sure your cashback credit card redemption program suits your needs. Most programs will allow you to use cash back rewards to help pay off your balance, but if you’re hoping to redeem cash to use anywhere, there are different ways each company sends you those rewards, be it direct deposit, or issuing a paper check.
The bottom line
Cashback credit cards offer you many convenient ways to save on purchases compared to other types of reward credit cards. The most rewarding thing about cashback credit cards is that they can be used to help you effectively save money on every single eligible purchase you make using them.
Source: iQuanti, Inc.