The Advantages of Cash-Back Credit Cards

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The Advantages of Cash-Back Credit Cards
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There are many different types of of credit cards
to choose from. Travel rewards credit cards are
sometimes a good option but the rewards programs
are often complicated or have a number of
restrictions. But cash-back credit cards are
simple and easy to understand because you get
back a certain percentage on every purchase you
make.
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The benefits
With some credit cards, youre limited to how you
can redeem the points you earn. For example, some
travel rewards cards will force you to only use
one airline or a specific hotel chain, which can
limit your options. There may also be blackout
periods or seat restrictions. Cash-back cards are
more flexible and you can use the money you earn
to pay for travel, merchandise, or help pay off
your balance. The possibilities are endless
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Here are some things you should keep in mind when
choosing a cash-back credit card

• Returns

The return on a cash-back card is probably the
most important feature of all. Many cash-back
cards provide a minimum return of 1 (in other
words, you earn 1 in cash for every 100 you
spend).

• Extra rewards on certain spending categories

If you spend more at the grocery or drug store,
some cards will give you a better rate of return.
You can often get two to four times more cash
back in some cases.

• No-fee options

While many travel rewards cards have a hefty
annual fee, there are some cash-back cards with
no annual fee. Cards with fees will usually
provide you with a higher percentage of cash back.
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• Bonuses

When you sign up for most credit cards, youll
get a reward. With a cash-back card, this will
often be in the form of sign-up bonus, a higher
return on spending for a short period of time, or
a waived annual fee for the first year.

• Limits

Some cards will allow you to earn cash back up to
a certain threshold every year. If you dont
spend a lot, thats not a problem. But if it is,
you might want to consider a different card.
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How to take advantage of cash-back cards
When youre using a cash-back card, you should
try and use your card on purchases thatll earn
you the best rate of return. Some cards will give
you a higher return depending on the spending
category.
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Choose the right card
There are a number of cash-back cards to choose
from. If you cant decide which one is best for
you, weve narrowed it down to our two favourites
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If you find travel rewards cards are too
restrictive or you dont want to redeem your
points towards a limited selection of
merchandise, you can use a cash-back rewards card
to help pay for travel or for your everyday
purchases.
FOR MORE INFORMATION VISIT US
www.pandacashback.com