Cash Back


Cash Back Credit Cards

Cash Back Rewards credit cards allow you to earn cash back on your purchases. Amounts can vary by merchant or type of purchase, but if you pay your bill in full each month, you’ll avoid interest, and generally come out ahead.

Tips and Advice

Cash Back Credit Cards: One type of rewards credit card that some people find more straightforward is a cash back credit card. Instead of rewarding the card holder with reward points or airline miles, cash back cards give you a percentage of your purchases back to you each month — actual cash!

Card holders typically receive between 0.5% – 2% of their net expenditure (purchases minus refunds) in your monthly statement, which you can choose to either credit to your credit card account or paid to you separately. Some card issuers have even raised the cash-back percentage up to 5%. The 5% cash back rate often applies only to purchases you make within a certain category — groceries, gas, dining, home improvement, etc. Often these high rates are only offered for a limited time or revolve to other categories every few months.

Cash back credit cards also include business credit cards and credit cards for students, so compare offers and see which one best meets your needs.

To understand exactly how they work, read the article entitled Pros and Cons of Cashback Credit Cards