Most Popular Cash Back Credit Card Articles
Chase Freedom Unlimited® Review: Chase Freedom Unlimited® is the leading cash back credit card for grocery purchases, as it offers 5% cash back on groceries for the next year on up to $12,000 of spending. Maxing out this 5% cash back bonus category can earn users $600 in grocery cash back in addition to a generous $200 sign up bonus and 1.5% cashback on everything else. Learn more about the benefits of Chase Freedom Unlimited®.
Citi Custom Cash℠: Citi Custom Cash℠ is unique among cash back credit cards in that it automatically earns you 5% on up to $500 of spending per month on the major spending category with the most spending. For example, if you spend $500 on groceries and $200 on gas, you earn 5% cashback on groceries and 1% on gas. If the spending is reversed the next month, you earn 5% on the highest spend category. This adds up to $600 in 5% cash back rewards annually in addition to 1% rewards on everything else.
Chase Freedom Unlimited® vs. Citi Custom Cash℠: Chase Freedom and Cash℠ both offer attractive $200 cashback bonuses but vary slightly in how consumers earn cash back rewards on a quarterly basis. To maximize the 5% cash back bonus opportunity, it may make sense to use both cards as they carry no annual fees. Compare offers to find the best deal for you.
Chase Freedom Unlimited® vs. Blue Cash Everyday®: Whether Blue Cash Everyday® or Chase Freedom Unlimited® is the best cashback credit card for you depends largely on how you spend. Those who spend more than $6,000 per year dining out benefit from Freedom’s 3% rewards on dining. Plus, the Chase Freedom Unlimited® is offering 5% cash back on grocery purchases on up to $12,000 of spending in the next year, which offers the opportunity to earn $600 in cash back rewards on groceries in the next year versus only $180 with Blue Cash Everyday® which offers 3% cash back on groceries for only $6,000 in spend.
Blue Cash Everyday® vs. Citi Custom Cash℠: Blue Cash Everyday® is one of the most straightforward cash back credit cards. Groceries earn 3% (up to $180 in cash back rewards per year), 2% on cash back at gas stations and 1% on everything else. Citi Custom Cash℠ offers 1% on everything else and 5% cash back on up to $500 of spending in a category you spend most in every billing cycle that can be restaurants, gas stations, grocery stores, drug stores, fitness clubs or live entertainment, making this cash back card a top choice for those who spend a lot on gas, groceries or dining out.
Cash Back Credit Cards
Cash back cards are one of the most popular consumer cards and for good reason. These types of cards work on a simple concept: the consumer earns cash rewards for their purchases. As opposed to a points rewards system, which requires the consumer to go through the redemption process, cashback rewards come directly in the form of cash. The form of cash back rewards depends on the type of cash back card you have. In general, you can find three different categories of cash back cards:
1. Flat rate cash back
2. Tiered cash back
3. Bonus category cash back
Types of Cash Back Rewards
Flat rate cash back cards refer to a rewards system where the card offers a fixed rate of cash back on purchases, regardless of category. This type of rewards system is ideal for those who have a fairly random purchasing history and do not spend heavily on one or two categories.
Tiered cash back rewards work on the basis of differing cash back rates depending on the category of spending. With these forms of cards, you will receive a standard cash back rate on most purchases and then higher cash back rates on certain categories, which most of the time include gas, groceries, dining, entertainment and travel. Therefore, if you spend regularly, but especially on a few broad categories (i.e. you drive often or eat out regularly), then this is the ideal form of cash back.
Lastly, bonus category cash back rewards work on the concept of revolving categories. Cash back cards offering this type of reward work similar to tiered cash back rewards, with the exception that the categories that offer the highest rate of rewards change with time. Therefore, this card is great for those who are detail-oriented and are willing to regularly update their purchasing behaviors depending on the cash back rewards.
Redeeming Cash Back
While there are many ways to redeem your cash back rewards, these are the most common ways to do so:
1. Statement credit - this is a method of using your cash back rewards to pay back your credit card bill. Instead of receiving cash, your cash back rewards will be used toward paying your credit card balance.
2. Donations /charity - if you are not spending much or earning many rewards but still want to continue your card, it would be advisable to simply donate your rewards to charity. In most cases, your card issuer will let you directly transfer your cash back reward to a charitable organisation of your choice.
3. Gift cards/coupon - many card issuers may be able to offer your cash rewards in forms of gift cards. In some cases where the card issuer offers gift cards with partnered organizations, these cards may offer an extra value or may offer prices that are less than the retail value.
4. Online retail - you can often use your cash back rewards and redeem them at online stores that are partnered with your card issuer.
There are many further points to take in mind when acquiring a cash back rewards card. Many cash back rewards cards have different rewards expiration dates. Some cards enable you to redeem rewards as long as the account is open, whereas others only let you do so for a fixed period of time.
Furthermore, some cash rewards cards also sometimes impose caps on how many rewards you can earn. Cash rewards cards tend to come with higher purchase APR than other cards. It is also important to remember that in order to earn the higher rewards rates, you need to register your card online. Keeping up with new promotions and updates will also ensure that you make the best use of your rewards card.
Getting the right cash back rewards requires you to consider a multitude of factors. One very important factor is your credit score. A higher credit score will not only improve your chance of acquiring a cash back card, but it will improve your chances of getting a cash back rewards card with a high rewards rate. Cash rewards cards that demand higher credit scores offer much higher rewards and lower interest rates than other cards that require lower credit scores. Lastly, you should identify your spending patterns in deciding what type of cash back rewards card you should get.