Cash back credit cards pay you a percentage rebate on the money you spend on the card.
Many cash back cards offer as high as a 5% cash back on purchases at supermarkets, drug stores, and gas stations, and 1% on all others. Other credit cards with cash back offers give 5% rebates on expenditures for auto repair, apparel, home improvement stores, and more.
A 5% cash back is equivalent to a 5% discount on your purchases. If you use a cash back credit card for most of your purchases and routine expenditures, that can turn into significant savings over the course of the year. To maximize earnings, many people like to get additional cards for family members, so that they receive cash back on all household expenditures.
In some cases, you don't earn the full cash back on your charges until after a certain amount of expenditures. Other cards put a limit on the maximum earnings you can accumulate in a year. The rewards on your cash back credit card may also expire after a certain number of months, or if you don't use your card for a period of time. The way your earnings are redeemed also varies from card to card. Read the terms of the card you apply for and make a note of the most important points, so you can follow up as needed.
Cash back credit cards are most profitable if you pay your card balance in full every month. If you intend to keep a balance on your card, you might prefer instead to find one that offers a low interest rate.
Some cash back credit cards also offer 0 apr for an introductory period or frequent flyer miles. Other kinds of cards offer different categories of rewards. In addition to cards for individuals, business credit cards