1 Answers
EclipseObserver
Updated:23/05/2024
Finding the right cash back credit card can maximize your savings on everyday purchases.
Key Features to Consider
- Cash Back Rate: Evaluate the percentage you earn on purchases.
- Bonus Categories: Some cards offer higher cash back in specific categories, like groceries or gas.
- Annual Fees: Consider whether the cash back earned justifies any annual fees.
- Redemption Options: Understand how and when you can redeem your cash back.
- Introductory Offers: Look for bonus cash back after meeting certain spending thresholds.
- Interest Rates: Review the APR to avoid costly interest charges if you carry a balance.
- Foreign Transaction Fees: If you travel, check if there’s a fee for purchases made abroad.
Q&A Section
1. What is a cash back credit card?
A cash back credit card allows you to earn a percentage of your spending back as cash rewards.
2. How does cash back work?
For every purchase made with the card, a certain percentage is returned to you as cash back, usually credited to your account or sent as a check.
3. Are there limits on cash back rewards?
Yes, some cards cap the cash back you can earn annually or within specific categories.
4. Can I use cash back to pay my credit card bill?
It depends on the card; some enable you to apply cash back rewards directly to your bill, while others do not.
Statistics Table
| Cash Back Rate | Typical Average | High Reward |
|---|---|---|
| General Purchases | 1% – 1.5% | 2% – 5% |
| Grocery Purchases | 1% – 2% | 5% – 6% |
| Gas Purchases | 1% – 2% | 5% – 6% |
Mind Map
Cash Back Credit Card Features:
- Cash Back Rate
- Bonus Categories
- Annual Fees
- Redemption Options
- Introductory Offers
- Interest Rates
- Foreign Transaction Fees
Upvote:755
