Finding The Best Cash Back Credit Cards

Posted by Nick Niesen on October 29th, 2010

Cash back credit cards provide fantastic opportunities for those that carry them. For every purchase a cardholder makes with one of these cards, money rebates are earned. This makes cash back cards potentially profitable for those that take the time to choose the best cash back credit cards and who use them properly. When looking for the best cash back credit cards, it is important to take several things under consideration.

One area to consider when searching for the best cash back credit cards is the percentage of rewards provided. Most cash back cards provide cardholders a cash rebate according to a percentage of the amount charged to the card. Obviously, the higher the percentage, the greater amount of money that can be earned. So, when looking for a cash back credit card, the consumer should, most obviously, opt for one with greatest rate of return.

Most cash back credit cards are partnered with certain businesses. For example, a cardholder may receive a 1% rate of return on general purchases, but a 5% rate if purchases are made at a certain gas station. Therefore, it is important for consumers to choose a cash rebate card that provides special incentives with businesses or services the consumer uses frequently. It certainly wouldn't make much sense for a consumer to use a cash back credit card providing a special 5% rate for purchases made at a restaurant if the consumer never dines out!

The APR of the cash back credit card also needs to be taken under consideration. Many cash back credit cards tend to have a higher APR than those without special rewards programs. The consumer must be aware of the APR of the card in order to determine if the ultimate finance charges will be more or less than the rewards earned. If the finance charges will cost the consumer more than the rewards he or she will earn, then the card is not truly earning the consumer money. Those that pay their balance off in full each month obviously do not need to be concerned with the APR.

Just as the APR must be considered when looking for the best cash back credit card, it is also important to look at the annual associated with the card. A cash rebate card with an annual fee may not be worthwhile in the long run. Therefore, the cardholder needs to be sure that he or she will earn enough cash back during the year to make the annual fee worth paying for.

Not all cash back credit cards work in the same way. Some send money to the cardholder once per year. Yet others credit the account. Still other cash back credit cards place the money in interest earning accounts or in special college savings accounts. With some credit cards, the points toward cash back earnings are calculated and sent to the cardholder automatically. Still others require the cardholder to request the refund once he or she has accumulated enough points. All of these need to be taken into consideration when determining which card is best.

Some cash rebate cards have limitations to how many cash back rebates can be earned per year. For some cardholders, this is not an issue because the limit is much higher than they will ever spend. For others, this cap can be a concern. In addition, some cash back credit cards place an expiration date on how long the rebates are good. Therefore, those that think they may not cash in on their rebates on a frequent basis need to consider whether or not they will be able to use the rebates before they expire.