One of the biggest advantages of using a cash back credit card is that you receive a percentage of your purchase back on items you would normally purchase anyway. It’s basically free money back in your pocket. Luckily, there are hundreds of programs one can choose from and all of them offer major benefits. With that being said, here are a few things one should look at when choosing a cash back credit card.
Percent: When looking at a cash back card, one should look at the percentage that the company offers. For example, most major banks, at minimum, offer one percent back on all purchases. Of course, it is usually not as simple as most cards offer a tiered program allowing users to get higher cash back rates on things like gas or groceries. Remember, one must decide based on their spending habits if they want to maximize their return with cash back cards.
Amount: Now, some companies offer an amazing cash back structure but make the consumer wait a long time. Ideally, when choosing a program, a light spender should find one with a low cash out amount; otherwise, a card owner may have to wait a long time to receive his or her money. Furthermore, one should always remain vigilant as a company can, without warning, cancel their program and keep the consumers money; it is wise never to allow these balances to pile up
Form: When receiving money, one will usually have multiple options. Most companies will offer cash back in the form of a check or direct deposit. Some companies will even allow a person to apply the balance to their statement in the form of a statement credit. Either way, a consumer should choose the option that is convenient for their circumstances.
Without a doubt, cash back programs offer the consumer plenty of benefits. When understanding what to look for, one can get the best card for their situation and lifestyle.