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INTRODUCTION
The variety of credit cards available can be confusing. There are countless rewards programs and cashback credit cards available, so it can be difficult to decide which one is best. In this article, we'll be focusing on cashback credit cards and showing you the top five cards to consider.
Cashback vs. Rewards Points
The two most common types of credit card reward systems are cashback and rewards points. Rewards points can be exchanged for a variety of items, including travel or shopping, but cashback is exactly what it sounds like cash returned to your wallet.
You can receive cashback in the form of a statement credit or a cheque in exchange for a portion of your purchases.
Why Opt for Cashback?
The ease of cashback is one of its key advantages.
You don't have to be concerned about using your points or choosing from a small number of awards.
Additionally, versatile, cashback can be applied to any kind of purchase.
Finally, many cashback credit cards have no annual fees.
How to Maximize Your Cashback
Use your cashback credit card for regular purchases and make prompt, complete payments of the balance to get the most value out of it.
You can also keep track of offers and deals to take advantage of extra cashback opportunities. In order to maximize your chance of earning rewards, you might want to think about using many credit cards.
CREDIT CARD QUALIFICATIONS TO CHECK
There are a few things to think about when selecting a credit card.
Credit Score Requirements
Different credit cards will have different credit score requirements. You can be qualified for additional alternatives with better rewards and lower interest rates if you have a high credit score.
APR, or annual percentage rate
If you don't pay off your debt in full each month, the APR will decide how much interest you'll have to pay on your balance.
Choose a card with a lower APR if you typically carry a balance.
Annual Fees
Some cashback credit cards have annual fees, which can eat into your reward potential. Make sure to choose a card with an annual fee that won't outweigh the benefits of the cashback rewards.
Cashback Formula
Different cashback credit cards will offer different percentages of cashback on specific purchases or categories. Make sure to choose a card that maximizes your cashback potential.
Redemption Options
Some cards may offer different redemption options, such as statement credits or checks. Select a card with a redemption option that best suits your needs.
TOP 5 CREDIT CARDS WITH CASHBACK REWARDS
We'll look at the top five cashback credit cards to consider now that you know what to search for
A. Chase Freedom Unlimited
Chase Freedom Unlimited offers 1.5% cashback on all purchases, with no annual fee. In addition, they provide a $200 incentive after $500 in purchases within the first three months after account setup.
Cashback Formula and Categories
1.5% cash back on all purchases
Introductory Offer
$200 bonus for spending $500 in the first three months
Additional Features
- Zero liability protection
- Purchase protection
- Extended warranty
B. Wells Fargo Cash Wise Visa
Wells Fargo Cash Wise Visa offers 1.5% cashback on all purchases, with no annual fee. In addition, they provide a $150 incentive after $500 in purchases within the first three months after account setup.
Cashback Formula and Categories
1.5% cash back on all purchases
Introductory Offer
$150 bonus for spending $500 in the first three months
Additional Features
- Cell phone protection
- Zero liability protection
- Roadside assistance
C. Citi Double Cash Card
On every purchase made using the Citi Double Cash Card, you will receive 2% cashback: 1% when you make the purchase and another 1% when you pay it off. They also have no annual fee.
Cashback Formula
2% cash back on all purchases
Additional Features
- Citi Entertainment Access
- Worldwide travel accident insurance
- Extended warranty
D. Capital One Quicksilver Cash Rewards Credit Card
With no annual fee, the Capital One Quicksilver Cash Rewards Credit Card gives 1.5% rewards on all purchases.
In addition, they provide a $200 incentive after $500 in purchases within the first three months after account setup.
They also offer a $200 bonus for spending $500 in the first three months of opening the account.
Cashback Formula and Categories
1.5% cash back on all purchases
Introductory Offer
$200 bonus for spending $500 in the first three months
Additional Features
- Travel accident insurance
- 24-hour travel assistance services
- Extended warranty
E. Discover it Cash Back
Discover It Cash Back offers 5% cash back in rotating categories each quarter, such as gas stations, grocery stores, or restaurants (up to a quarterly maximum), as well as 1% cash back on all other purchases. They also have no annual fee.
Cashback Formula and Categories
5% cashback in rotating categories each quarter, up to a quarterly maximum, and 1% cash back on all other purchases.
Introductory Offer
Discover will match all the cash back earned at the end of the first year of the account being open.
Additional Features
Freeze your account on-the-go
Social Security number alerts
FICO credit score access
OTHER CREDIT CARDS TO CONSIDER
While the above five are the top choices, there are still other credit cards to consider:
A. American Express Blue Cash Preferred
American Express Blue Cash Preferred offers 6% cashback on select U.S. streaming services and on purchases at U.S. supermarkets (up to $6,000 per year), 3% cashback on transit and gas stations, and 1% cash back on all other purchases. They do have an annual fee.
B. Bank of America Cash Rewards
Bank of America Cash Rewards gives 3% cashback on a single, pre-selected category (like gas, eating, or online shopping), 2% cash back at supermarkets and wholesale clubs, and 1% reward on all other purchases. They also have no annual fee.
C. U.S. Bank Cash+ Visa Signature Card
U.S. Bank Cash+ Visa Signature Card allows you to choose two categories (such as gas stations, restaurants, or home utilities) to earn 5% cashback on, as well as an additional category for 2% cashback. They also have no annual fee.
D. Amazon Prime Rewards Visa Signature Card
With an Amazon Prime subscription, the Amazon Prime Rewards Visa Signature Card delivers 5% cashback on all purchases made through Amazon.com and Whole Foods Market, 2% cashback at restaurants, gas stations, and drugstores, and 1% cashback on all other purchases. They also have no annual fee.
TIPS TO MAXIMIZE YOUR CASHBACK
Here are some additional pointers to help you achieve your potential for cashback:
- To prevent paying interest, make sure to pay your debt in whole and on schedule.
- Use your card for everyday purchases to earn cashback on everything.
- Keep track of offers and deals, as they can add up to significant cashback opportunities.
- Utilize multiple credit cards to maximize your rewards potential across different categories.
CONCLUSION
It's crucial to consider your spending patterns when selecting a cashback credit card in order to select one that will maximize your rewards potential. These top five cashback credit cards, along with some others to consider, offer a variety of benefits and rewards for everyday purchases.
FAQs
What is cashback?
Cashback is a type of rewards program provided by credit card providers that enables you to receive a portion of your spending back as a statement credit or a cheque.
How do I redeem my cashback rewards?
Redemption options vary by credit card, but most offer either a statement credit or a check.
When do I receive my cashback rewards?
This will depend on the credit card company and its rewards program. While some may give you cashback right away, others might require you to accrue a particular quantity of points before you can use them.
How do I qualify for a cashback credit card?
Each credit card will have different requirements, but generally speaking, you'll need a high credit score. Some credit cards might also have minimum income or debt-to-income ratio requirements.
Are cashback credit cards worth it?
Cashback credit cards can be worth it if you choose the right one and use it wisely. To prevent interest costs, be careful to pick a credit card with a rewards program that fits your spending style. You should also pay off your debt completely and on time.
