If you’re thinking about credit card options that you’re interested in using for yourself, there are many things to consider. You want to make sure a credit card works for you, avoiding extra fees, high interest rates, and spending that spirals out of control. Instead, you want rewards that actually benefit you, and one of the best ways to get that is with a cashback card. Here are four things to think about if you want the best cash back credit cards.
1. Annual Fee vs. Rewards
Annual fees are one of the things that many people immediately look at when they’re assessing the usefulness of a credit card. However, it’s important that you don’t assume that a card with $0 annual fee will always be the best option. Some families may be able to get more benefit from a card with a moderate annual fee. Decide what your ideal annual fee is, as well as what rewards make a card worth it for you, and keep that in mind as you look at annual fees.
2. Sign-On Bonus
The next thing to think about is the sign-on bonus for a card. Most of the time, sign-on bonuses come as either cash back or as points. When looking for a sign-on bonus, it’s important that you also look at the requirements to actually receive the bonus; a sign-on bonus won’t be very helpful to you if you’re spending significantly more than usual to get it.
3. General Rewards Percentage
How much do you get in cash back rewards with a credit card on all your purchases? Oftentimes, this will be listed as “All Other Categories,” as many credit cards offer extra percentages on certain categories. This base percentage is often 1%, although there are credit cards that give you more than that on your purchases. If you can find a base percentage higher than 1%, it may be key to helping you get more from your money.
4. Special Rewards Categories
Next, check the higher rewards categories that your card might have. For example, a card may offer extra rewards on grocery purchases, gas purchases, travel purchases, or dining out. If you have a card that offers especially high cash back percentages on certain purchases, you’ll probably want to make sure that you’re using your card for all of those purchases whenever you make them. That way, you can get even more cash back on your purchases.
A cash back credit card is a great way to make your purchases work for you; depending on the card and the purchases, you can end up getting essentially a pretty decent discount on your general purchases. That makes these cards great for both individuals and families, ensuring that all your credit card purchases give you something back when you make them. If you’re looking for the best cash back credit card, take a look at all four of these elements to get the best one.