Too many credit cards and not enough time. Do you feel this way about all the options that credit cards now have? When you think about all the different ways a cash-back credit card can help you, it's really amazing. Here are some things you should look for when picking yours.
The first thing you should know about credit cards that give you cash back is that some of them come with bonuses. Some of these might be pretty good, so you might want to look at them first. Some of them will give you up to 10,000 points that you can use for whatever that credit card is for (air miles, hotels, etc.). If you need one of these more than the others, you should look at that card a little more.
The interest rate is the next thing you need to think about. This number can be anywhere between 7.99 percent and 18.24 percent. Most of the time, this interest rate doesn't start until the introductory period is over, but it will eventually. So, if you keep a balance on your credit card, you should choose one with the lowest possible interest rate.
Then, check to see if you can transfer your balance to the cash-back credit card. If you have balances on other credit cards for which you are paying interest, you should put them on your new card and get 0% APR interest. Check to see how long you can enjoy that interest rate. It could be for the life of the transfer, which means until it's paid off. Also, check to see if the card has any fees for making transfers. At least one credit card company will pay you to make the transfer.
How much of a rebate your cash-back credit card gives varies. Some give up to 5% cash back on certain purchases, which are usually things like gas, groceries, and medicine. Some will give you 3% cash back on everything you buy as a whole. To get an accurate picture of the overall benefits, you will need to compare the interest rate to the percentage of cash back. Some credit card companies act like they hope you won't notice.
You should also look at the different fees that come with your cash-back credit card. This means you need to read the fine print and compare it to other offers for the same type of card. Some credit cards also have an annual fee, may require you to keep a balance, or your air miles may disappear after a while. Other cards might have very high fees or only let you use your points in certain places. Make sure you can use all of the benefits, or find a different one.
