Cash-back credit cards are in demand for their tangible benefit of receiving actual cash on using them for your expenses. These cards also provide more credit based on your monthly credit card expenditure. However, there are dozens of cash-back credit cards available, one a bit better than the other. So, selecting the best cash-back credit card becomes really tricky.
How to Choose the Best Cash-back Credit Card?
First, you need to go through the ideal cash-back credit cards that fit your spending habits. If you’re a high flyer, you need cash-back credit cards that offer more rewards on large spending. If you are into discounted pricing, then some cards offer high cash rewards against median spending.
The next measure for selection would be matching your appetite with the rewarding complexity of the cash-back credit cards. Narrow it down to the cash-back credit cards that entail the least requirements for earning cash rewards.
The final step for selection would be finding which cash-back credit cards yield the most rewards on the same amount of spending. If cash-back credit card “A” gives you 10% cash-back on $100 spending while cash-back credit card “B” offers you 12%, you go with the latter one.
In addition to this, you should also make sure that the card’s signup bonus, cash-back rate, and annual fee should be lucrative enough for your use. Lastly, you can also go for a cash-back credit card that gets approved effortlessly in a hassle-free process.
Cash-back Credit Cards – Pros & Cons
There are several benefits to having cash-back credit cards around. They are popular for being an outright profitable option for transactions. The advantages of cash-back credit cards include:
- Signup bonuses
- A straightforward rewarding system with no hidden costs
- The restricted devaluing of cash rewards
- Near-zero annual fees for credit processing
- 0% APR on introductory purchases for loyal cardholders
Some cash-back credit cards, however, work differently than the rest. If you wind up with the wrong type of card for your spending habits, you may unknowingly misuse it and face financial troubles. The drawbacks of cash-back credit cards include:
- Travel rewards derived on the basis of the limited total value
- Too many wager requirements
- Multiple and complicated bonus categories
- High rate APRs on some purchases
- Missed payments and dormancy leading to loss of rewards
But not all cash-back cards are created the same way. Some get you more benefits, while some fail to earn high rewards for you. You will always find an ideal cash-back credit card that rewards you for every dollar spent.
Top 5 Best Cash-back Credit Cards in the World
Some cash-back credit cards offer similar rewards on all purchases, while some offer higher cash-back rates on the specific types of spending. Then, there are some cash back cards that can reward you based on a hybrid cash-back rate. Here are the five best cash-back credit cards being used around the world:
- Wells Fargo Cash Wise Visa® Card – Get a flat and unlimited 1.5% cash rewarded on all spending, along with a nice $150 signup cash bonus.
- AmEx Blue Cash Preferred® Card – Earn 6% cash-back on all supermarket transactions with a spending limit of up to $6,000. Use the rewards for discounted digital media subscriptions on Netflix, HBO, and other streaming platforms.
- Chase’s Freedom Unlimited® – Enjoy a rotating 5% cash-back rate on quarterly spending and get a chance to redeem in kinds, from merchandise to travel packages.
- Double Cash Card by Citi® – Get a guaranteed 1% return on all purchases, followed by an effective 2% cash-back on fully-paid monthly credit balances.
- AmEx Blue Cash Everyday® Card – Redeem 3% cash rewards on purchasing groceries, and get another 1% cash-back on selective supermarket purchases.
You can also get cash-back cards tailor-made for your needs. All you need is a good credit score to get a good cash-back credit card!
