Credit Cards have developed over the years. Now a days you can receive really good cash-back type credit cards. These cards offer different type of cash-backs. As a consumer it can be a bit confusing and overwhelming to assess which cash-back credit card is best for your needs. Below we are going to go through all the things to consider when choosing the best cash-back credit-card for you.
Things to Consider When Choosing the Best Cash-Back Credit Card for You
There are 4 main things to consider when compare which cash-back credit card is best for you.
- Earnings-Rate: How much actual cash will the credit card give you? Do you get the same rate back across all types of purchases or does it differ depending on the type of spending?
- How is to Redeem Cash: It is important to know exactly what type of cash-back Credit Card you have. Some cards give you the money straight-back through your bank account. Other automatically post your rewards on your credit card statements. Finally, there are cards that will give you credit to your statement that can only be offset specific purchases. It is important to read the terms and conditions to know all the details for each card.
- More Perks: Does the card offer any additional perks beyond cash-back. Do you coverage and protection for the purchases made. Does the card waive foreign transaction fees? All these additional perks can be quite valuable.
- Yearly Fee: Most cash-back credit cards don’t charge any annual fees, whilst some do. It is important to see if they do and how much to make an assessment if the card is worth it.
Categories: There are in essence three type of cash-back cards.
- Flat-rate Card: Here you get a flat rate on all types of purchases
- Bonus-rate Card: There cards basically offer higher rates in certain categories at certain times while a flat rate on everything else.
- Specific Category Card: These cards pay a back-back (often high) on specific type of purchases. That can be gas, groceries, restaurants or travel.
Best Cash-Back Credit Card for You?
Best way of making the decision of what card is best for you is to look at looking at the parameters above and make the decision based on that. If you spend a lot of money on groceries, maybe a card that focuses on high cash-back card within this segment. Do you want to get your cash-back straight in your hand, then pick one of those cards instead of getting cash-back that can only on a specific segment.
Keep in mind that most credit card applications require credit scores for each card. As a general rule of thumb, the credit cards with the absolute best cash-back rewards are the ones that tend to require high/higher credit scores.
Cash Back Credit Cards
Discover it Cash Back
- Cash Back Offer: 5% on $1,500/quarter + 1% on everything else
- Annual Fee: $0
- Regular APR: 14.24% –25.24% Variable APR
- Intro APR: 0% on Purchases and Balance Transfers for 14 months
- Suggested Credit Score: 690-850
This Discover cash-back card offers 5% cash-back on all spending up to $1,500 a quarter and 1% on all other spending. You can redeem cash back any amount at any time. Rewards never expire. You can use you rewards on Amazon.
Wells Fargo Cash Wise Visa Card
- Cash Back Offer: 1.5% on all purchases and 1.8% for mobile wallet purchases
- Annual Fee: $0
- Regular APR: 16.24% – 28.24% Variable APR
- Intro APR: 0% on Purchases and Balance Transfers for 12 months
- Suggested Credit Score: 690-850
In addition receiving 1.5% on all purchases with this Well Fargo Card, you can make an additional $200 cash reward if you spend $1,000 in the first three months. Furthermore you get up to $600 on protection on your cellphone. You keep the rewards as long as you have card open.
Chase Freedom Card
- Cash Back Offer: 5% on rotating bonus categories and 1% on all other purchases
- Annual Fee: $0
- Regular APR: 17.24% – 25.99% Variable APR
- Intro APR: 0% on Purchases and Balance Transfers for 15 months
- Suggested Credit Score: 690-850
You receive 5% on rotating categories each quarter as long as you activate the category. These have over the last couple years been wholesale clubs gas-stations and restaurants. On top of that you can make an additional $150 cash reward if you spend $500 in the first three months. Furthermore you get free credit score.
Citi Double Cash Card
- Cash Back Offer: 1% cash-back when make purchase + 1% cash-back when you back.
- Annual Fee: $0
- Regular APR: 15.74% – 25.74% Variable APR
- Intro APR: 0% on Purchases and Balance Transfers for 18 months
- Suggested Credit Score: 690-850
1% cash-back when you make the purchase, with the kicker additional 1% when you make a payment for total of 2% cash-back. The cash-backs can be redeemed through either statement credit or gift card.
Blue Cash Preferred
- Cash Back Offer: 6% on up to $6,000/year. 3% on gas-stations. All others purchases are 1%
- Annual Fee: $95
- Regular APR: 15.24% – 26.24% Variable APR
- Intro APR: 0% on Purchases and Balance Transfers for 12 months
- Suggested Credit Score: 690-850
Even though there is a annual fee, the high rate of cash-backs especially for super markets and gas stations at 6% and 3% respectively. In addition, you receive $200 cash reward if you spend $1,000 in the first three months.
HSBC Cash Rewards MasterCard
- Cash Back Offer: 1.5% on all purchases and annual 10% bonus on spending previous year
- Annual Fee: $0
- Regular APR: 15.24% – 25.24% Variable APR
- Intro APR: 0% on Purchases and Balance Transfers for 15 months
- Suggested Credit Score: 690-850
You receive 1.5% on all spending + the quicker 10% annual bonus on previous years spending. As a quicker there are no foreign transaction fees. Furthermore, you receive $150 cash reward if you spend $2,000 in the first three months.
Alliant Cashback Visa Signature Card
- Cash Back Offer: 3% on all purchases the first year and then 2.5% for all purchases
- Annual Fee: $59
- Regular APR: 11.99% – 14.99% Variable APR
- Intro APR: Not Applicable
- Suggested Credit Score: 690-850
This card is specifically made for those spending a lot on their cards. There are no foreign transaction fees and gives a large credit line. The annual $59 is waived the first year. You have $0 fraud liability guarantee from Visa.
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