How to Find the Best Cash-back Credit Cards
Bundles of credit cards are ready to opt, but smart citizens have already moved towards cash-back credit cards. The reason is simplicity and more value. No one wants to have a credit card that gives random rewards. Moreover, these rewards generally expire in a couple of months. People are moving on to cash-back credit cards. You get cash-back on your monthly bills as a reward. This cash-back is directly deposited in your account, and users can use this cash-back for further purchases. Hassle-free transactions can bring back some cash in your account on your monthly expenditure. Users can earn a little 1%-6% cash-back on their monthly spending. How do you find the best cash-back credit cards? What are the features you should always look for?
Best Tips to Find Cash-back Credit Cards
Here some tips to find a cash-back credit card and how to use it.
Sign-On Bonus
Kick-start your cashback journey with a credit card issuer that gives quick cash-back when you sign up with them. Sign-on bonuses are not the industry standard, but some issuers still provide you with money to join them.
Annual Fee
Look out for annual fees and don’t avoid all credit cards with monthly payments automatically. Look at the yearly fee concept in the context of the credit card’s other features. For example, if you regularly shop at grocery stores and use your card as a payment method, then spending $50 or $70 in annual fees is well-spent money. Some issuers offer no-fee cash-back cards.
Reward Limitations
Credit card issuers are money minded like you. They don’t want to lose the potential money they earn, nor do they want to lose you. They know that you’re a potential profit source to them, and your business is the key to their potential profit. Card issuers set some cash-back limits so they don’t go empty-handed while you earn. Look for the cards that offer monthly spending caps so that you get higher cash-back.
Ease of Redeeming Cash
You should check the ways of redemption for cashback. Different card issuers have different ways to give you cash-back. But you need to look for a card that gives you a bonus online or by calling a toll-free number. Typical ways how you can redeem your cash are:
- Credit to your card
- Deposits to your bank account
- In the form of gift cards and vouchers
- Charitable donations
Interest Rate for Cashback Credit Cards
Interest rates should be an essential feature you may look for. Some card issuers give a 0% introductory interest rate. The law has introduced that the introductory rate time must be six months from the date of issuing. However, some card issuers give 12 to 18 months introductory rates. You should look for similar credit cards.
A card’s interest rate is significant if you are not able to pay the entire balance. Generally, interest cost exceeds cash-back worth. If you carry a balance, then a cash-back credit card is not the right fit for you.
