Best Cash Back Credit Card
The best cash back credit card to get is the one which suits you and your finances the best. A cash back credit card is a credit card which gives you money back every time you use it to make a purchase. This concept sounds appealing. There are several factors to take into account when deciding which is the best cash back credit card for you, and we will address these in this article. You need to take into account your spending habits, your ability to pay off your credit card each month in full and any other cards or loans which you currently have. So what exactly is a cash back credit card?
What is a cash back credit card?
The best cash back credit card is one which suits you and your financial circumstances and spending habits. Put simply, it is a card which pays you money every time you use it to purchase goods or services either online or off-line. The amount of cash back you are given varies from card to card but is generally in the region of half of a percent up to one and a half percent. Some cards offer an introductory rate which may be up to five percent for a limited period. Some cards require that you have an income level which is quite high before you will be allowed to have the card issued. So your salary may be a factor in deciding which is the best cash back credit card available to you. If you set up a cashback credit card correctly and use it wisely you can think of it in much the same way as a debit card. Except, it will pay you every time you use it to spend money. For example, one percent may not sound very much but if you use it on every possible occasion for day-to-day spending this one percent cash back can soon add up to a considerable sum. This brings us to the subject of the best cash back credit card spending strategy to use.
How to use a cash back credit card.
This paragraph is very important; please make sure you understand what is said here before you decide to get yourself a cash back credit card. The way to use one is to setup a direct debit with your bank which will pay off the credit card every month. The APR (annual percentage rate) on these cards is usually high. This is because the providers hope that you will not be able to pay off the card at the end of the month. This earns them a nice level of interest. This interest will be far more than the cash back which they are giving you for using the card. Do not set up a standing order with your bank as this needs to be set for a fixed amount. Set up a direct debit which will pay off your card in full, every month. If you do not do this, all it takes is to forget to pay the bill once, and you will have lost any benefits of using a cash back credit card. This leads us to the topic of who should use one of these cards.
Who should use a cashback credit card?
We have already discussed the best cash back credit card strategy to use. So who is this ideally suited to? Really, it is best suited to someone who does not need to use it! The ideal user of one of these cards is financially secure with a high salary and somebody who has no debts to pay at the end of the month. This person can afford to pay off their credit cards in full every month and gain the benefit of getting a fixed percentage of their spending paid back to them by their credit card company. If you have existing credit card debts on another card, or if you have a loan to pay off, you would be better off paying these off first before considering what’s the best cash back credit card for me? If you fit the criteria mentioned above and have got yourself the best cash back credit card available, paying the best rate of money back to you, when should you use it?
When should you use a cash back credit card?
Basically, if you can afford to pay off your credit card every month, have no other debts which would be better paid off first, have set up a direct debit to pay off the card every month, then you should use this card at every available opportunity. If you have a large purchase which you wish to make and have the cash available then use your card instead and you will receive the cash back benefit. If you have only just got your shiny new and best cash back credit card and you are getting a good introductory rate on it, up to possibly 5% in some cases, then consider timing the use of the card to make large purchases to coincide with the period when you are getting this great cash back rate. It won’t last forever so you should exploit it to the full while you are getting it. So long as you have the cash sitting in your bank account ready for that direct debit at the end of the month you will be fine. So where should you use it?
Where should you use a cash back credit card?
You should use it everywhere that you would use cash or your debit card. Try to think of it as your primary way of spending money. Don’t go overboard and buy things which you don’t need. But try to use it everywhere that you would normally use cash or a debit card.
So which is the best cash back credit card for me?
Firstly, I would say go with a credit card provider which is widely accepted so that you can use your card at every available opportunity. If you like to travel, make sure that your card is accepted internationally and that there are no penalties or fees incurred for using your card abroad. Usually there are not penalties for doing this. In fact it is better to use a credit card or debit card as often a credit card offers protection against fraud and in the event of a retailer going out of business. A good way to find the best cash back credit card is to do some research online. There are a great many websites which will review these cards and offer advice. Do be aware though that some of these sites earn commission from the credit card companies for referring a new client to them so there is always the possibility of these reviews being biased in some way or the card at the top of the list being a sponsored listing rather than the card which offers the best cash back credit card deal.
Conclusion
Cash back credit cards offer a great way to earn some money back on your purchases. Please remember that to get the best from these cards you need to be able to pay them off in full every month or you will end up out of pocket. If you can do this then use them just as you would a debit card or cash at every opportunity. After the introductory rate you may only be getting around 1% cash back. This may not sound a lot but over one year this can add up to a considerable sum of money. I hope that you have found the information on this website useful and that it has helped you decide which is the best cash back credit card for you to get.