All you need to know about Cash Back Credit Cards

All you need to know about Cash Back Credit Cards -

Updated: August 4, 2016

There ' there's nothing like a cash back credit card. Tens of millions of Americans use a credit card on a regular basis, so why not earn money back with every purchase you make - In some cases, you can earn as much as 6% cash back ! If you are not a frequent traveler or do not carry a balance on your credit card regularly, a cash back card may be your best option to earn points. It is true that many require "excellent" credit is not always the case. There are a number of cards that require only "good" credit, and even "fair" credit in some cases. Here's everything you need to know about cash back rewards so you can maximize the rewards on all your purchases.

How to use and buy with cash back credit card

For most, earn cash back with a credit card is simple. You earn money after each purchase, and when you reach a certain threshold (typically $ 25 to $ 50), you may get the option to redeem. While some banks allow you to select instruction credit check or direct deposit in your bank account, others will also allow you to redeem your money Gift cards which can be used in retail, restaurants, electronics and entertainment purchases. Statement credits are the quickest and easiest to get your money, and the best option if you plan to use new credit card in the future. While most cards offer similar ways to redeem your earned money back, there are three categories of cash back credit cards :. fixed rate category and fixed category rotation

fixed rate

cash cards fixed rate credit back are the simplest to use, because you will earn the same rate of return - usually between 1% and 2% - no matter what the purchase is. The advantage of these cards is that you do not have to jump through hoops or strategically plan your purchases because you win the same no matter where you shop and there are no generally limits rewards. The downside, however, is that you can not win the maximum amount of cash back if you frequently shop at places other maps give a higher percentage of cash back on.

Best Fixed Credit Card Rate Cash Back: Citi Double Cash Card

The Cash Card Double Citi (a NextAdvisor seller) is becoming a pillar in the cash back credit card world. With this card, you will get on all purchases you make and another 1% for every dollar you Payback on your bill 1% cash. This means you can earn up to 2% cash back on an unlimited amount of purchases when you pay your bill. You can start using your cash back by $ 25 increments and get a check, statement credit, direct deposit or gift card. Other benefits of the Citi Double Cash card include 0% Intro APR on balance transfers for the first 18 months, you have the account and no annual fee.

Runner-up Fixed Rate Cash Back Credit Card: Capital One Cash Rewards Quicksilver

The Capital One card Quicksilver is great because it is a card without strings attached. You should not worry about categories in rotation, and you'll earn 1.5% on every purchase you make with no limit of rewards. The card comes with a $ 100 bonus cash back when you spend $ 500 during the first three months of account opening, and there is a 0% intro period APR on purchases and transfers balance. Quicksilver cardholders pay no annual or foreign transaction fees, and unlike some of the other cards in this list, you only need "good" to "excellent" credit to qualify.

category

rotation

If you like variety with your cash back credit card, which offers categories of rotation is a good option. Generally, you will earn 5% on select categories or specific stores up to a certain limit (often $ 1500 per quarter). After three months, the categories will change and you can earn 5% cash back at other places. Most rotary category cards, such as Chase Freedom, also offer 1% cash back with unlimited rewards on all other purchases. If you agree with the flexibility and variety, these cards are a good choice. The best way to maximize your earnings is to spend $ 1,500 each quarter the target categories. For example, you will get $ 75 cash back every three months if you spend $ 1,500 in the categories specified in that time. This means you can get $ 300 annual rebate, plus 1% cash back on everything you buy.

Category Best Cash Back Rotating Credit Card: Chase Freedom
When it comes to renewable category card cash back, it's hard to beat Chase Freedom. First, you get a $ 150 bonus cash back when you spend $ 500 over the first three months of having the card. You will also have 5% cash back on purchases in certain categories that rotate quarterly, such as purchases made on websites selling in specific detail, gas stations and department stores to a maximum of $ 1,500 the sentence. The card comes with 0% introductory APR on purchases made in the first 15 months of having the card, as well as balance transfers, although there is a charge of 5% on balance transfers. To top it all, the card has no annual fee and you only need good credit to qualify.

fixed category

cash back cards fixed category is a hybrid of fixed and rotary rate category cards. These types of cards you a higher percentage of interest in certain categories (usually with limits), as in department stores and gas stations earn, and also gives 1% cash back on all other purchases. Unlike renewable card category, then do not change. This type of card is extremely beneficial for those who often shop for designated categories. For example, the Blue Cash Preferred Card from American Express offers 6% cash back (to a maximum of $ 6,000 for purchases) in grocery stores and 3% at department stores and gas stations and 1 % everywhere else. You could get $ 360 on groceries each year only

Best Fixed Category Cash Back Credit Card: Blue Cash Preferred Card From American Express
The card Preferred Blue American Express Cash (NextAdvisor a seller) is an incredible cash back card, especially for shopping everyday. As described above, with this card, you will have a fantastic 6% cash back on up to $ 6,000 of purchases in US supermarkets each year, and 3 percent cash back in stations and department stores and 1 percent cash back on everything else, limitless rewards. American Express is also running a special offer that earns you 5% cash back on up to $ 4,000 in eligible travel purchases made during the first 6 months of membership card - that is up to $ 200 cash back! Plus, you get $ 150 cash back bonus when you spend $ 1,000 in the first three months of account opening. In addition, you will have a 0% Intro APR on purchases and balance transfers for the first 12 months. The balance transfer fee is 3% of the total transfer fee with $ 5 minimum. The card has an annual fee of $ 95, but if you prefer a similar card with no annual fee (which also offers the special offer of 5% on travel purchases), the daily card Blue Cash from American Express is probably a better option for you.

Want to know more about cash back credit cards? Check our credit card review for more information and to see which card might be best for you.

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