Have you ever considered changing your credit card to one with a cashback rewards program? If you have not used a cashback rewards card before, it may seem somewhat daunting when you try and decide which option is best for you. Not to worry. After reading this article, you will have a better idea of cashback rewards cards and if one might be a good fit for you.
A cashback rewards card is simple to explain. You spend money, you earn points. Often it is 1 point for every dollar that you spend. This means that if you spend $2,000, you will get 2,000 points. Usually, 1 point turns into 1 cent for cash back, so your 2,000 points might equal $20. You often can use this cash to redeem for gift cards, deposit into a banking account, or even paying off your credit card bill. Some cards are 1.5% cash back on all purchases, while others are 1% on some purchases. Some offer 5% back on specific purchases that rotate by category each quarter, such as gas stations, grocery stores, department stores, and so forth. In fact, there are many more combinations of cash back, so sorting through all the clutter and determining which card is right for you can be difficult. How much you use your cashback rewards card and where you use it will determine which card is a better fit for you.
Each cashback rewards card is different, as some are connected to specific retailers like grocery stores and airlines, while others are more generic. You should figure out where you spend the most money and what kind of benefits would be most useful to you before researching different cashback rewards cards. If you travel a lot, a cashback rewards card with an airline may give you more free flights. By contrast, if you're just out of college and do not spend a lot, a generic card may be more beneficial.
Cashback rewards cards have a variety of benefits since you get paid a small amount just to use your credit card, and you may also receive a signup bonus when you first acquire the cashback rewards card. You should keep in mind that you need a good credit score to qualify for a cashback rewards card, and you may have to meet certain spending stipulations to receive the original signup bonus. In addition, you should also make sure that you will not receive fewer cashback rewards than you might spend on annual fees and/or interest, as cashback rewards cards often have higher APRs.
If you take the time to consider your spending habits and make sure that you are committed to paying off the balance of your card every month, a cashback rewards card may be a great fit for you. Do some research online about different cashback rewards cards on our site, and figure out what card is going to be the best fit for you.