Cash back credit cards are cards that reward you when you use the card. Although credit card debt is a horrible thing to have in your life, I don’t necessarily think that having a credit card is always bad. There are many times when using a credit card is more convenient than paying with cash or debit cards.
If you’re going to use a credit card for occasions like this, you should choose a card that rewards you for using it. Some cards issue cardholders “points” as a reward for using their card. The cardholders can use these points to purchase merchandise or gift certificates. However, my favorite type of rewards card is one that rewards its cardholders with cash. This type of reward allows me to use my reward on anything I want rather than trying to guess what type of reward would be best for my family.
There are several different cash back or reward credit cards out there, but here are a few of the most common ones I’ve seen:
American Express Blue Cash: This card is advertised as offering rewards as high as 5% of the cardholder’s purchases although most purchases realize a reward closer to 1%. One unique aspect of this card is that purchases at drugstores, grocery stores, and gas stations earn a slightly higher reward than other purchases.
Discover Card: Discover’s cash back reward is probably the most famous of the cash back cards. Cardholders earn at least 1% on all of their purchases but can earn between 5% and 20% on internet purchases by shopping through the card company’s website online.
Chase Freedom: Chase’s rewards card reportedly offers its cardholders the flexibility to earn rewards on all types of purchases. For an introductory period, cardholders earn 3% rewards on gas, grocery, and fast food purchases. All other purchases earn rewards at a rate of 1%.
If you are going to use a credit card, then be smart and use them to your advantage. This means paying off the card each month and choosing a credit card which offers you cash back or a similar reward for use.
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10 responses so far ↓
1 Phil // Apr 5, 2009 at 11:32 am
Good article, I have forgotten about cards that you can use sensibly to get something back! I look forward to more in the future.
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5 Giz // Apr 5, 2009 at 2:44 pm
Awesome info. Credit cards are tools. Plain and simple. They can be used for the job at hand (when cash isn’t handy) and paid off each month. Here CCs are a positive. When used because we don’t have the money, they are a negative. Same can be said for any tool. We can use a chainsaw to cut down those annoying branches…or a chanisaw can be used to do serious damage. Use the tool for the job at hand.
6 Reward Credit Card or Cash Back — Which Is Better? | Gasoline // Apr 5, 2009 at 5:34 pm
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10 jorge // Aug 23, 2009 at 9:40 pm
nice post and good job writing
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