Editorial Policy

Cash Back Credit Cards Continue to Grow

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By Steven Gibbs
January 3, 2010

When was the last time that you decided it was time for you to get a new credit card? If you are like millions of other Americans you have either switched card issuers already or are probably thinking about it. While many people choose low interest credit cards for their new plastic, cash back cards have dramatically gained in popularity and have demanded the attention of issuers and non-issuers alike.


When it comes to using credit cards, rewards cards are finding themselves being used more simply due to the fact that the cardholder is getting something just for using the card. In most cases issuers have increased rewards points or cash back amount to keep cardholders using their plastic over cash. Even as the year ends and cash back rewards from the holiday season seem to re-adjust back. We could see increased rewards for making purchases stay a little longer as issuers use this to gain new cardholders.


Rewards that people want (in order or preference) include:

  • Cash Back
  • Merchant (Retailer)
  • Flexible Points
  • Gas
  • Travel (ie: airline)
  • Charitable Donations

As rewards are becoming a key feature that many Americans are wanting, many issuers are using this to entice consumers not only with their credit cards but with their debit card products as well. Debit cards rewards have grown tremendously within the last year and are scheduled to be even more competitive in 2010. We have seen discounts for shopping both online and in-store of up to 12% as well as rewards such as air miles that can be redeem with no blackout dates or restrictions.