Tips to choose the best cashback credit card
Credit cards have become an essential part of our lives, offering a convenient and powerful purchasing tool. The application process is simple, and credit cards enable individuals to develop good credit habits, which is beneficial when applying for future loans.
While credit cards are great, cashback credit cards take it to the next level. These cards provide a fantastic way to earn rewards when spending money and meeting specific terms. It's a win-win situation for both the credit card provider and the cardholder. What's even better is that these rewards can be earned regardless of where or how the card is used.
Given the number of credit card companies offering cashback credit cards, there are certain factors to consider when choosing the right one. Here are some pointers to simplify the selection process for the best cashback credit cards of 2018:
How does a cashback credit card work?
- Cashback credit cards function similarly to other rewards credit cards. The main difference is that cashback credit cards offer cash as rewards instead of points. The total amount spent in a particular month is calculated, and a portion of that cash is returned in the form of discounts on specific products, encouraging card usage.
- Cashback credit card issuers can afford to offer cash back because merchants pay an interchange fee for each transaction. Rewards and rebates can also be funded through deals between the credit card issuer and the merchant, ensuring that the cashback credit cards are legitimate.
- With each use of a cashback credit card, a percentage of the money spent is earned as cashback. For example, if $100 is spent on an item and the card offers 2% cash back, $2 will be earned.
Factors to consider when choosing the best cashback credit card of 2018:
- Reward rates: The reward rate offered by the cashback credit card is an important factor to consider. A 2% cashback reward is attractive for a flat-rate card, but for a cashback credit card that offers 5% or higher, choosing a tiered or bonus category credit card is recommended.
- Annual fees: Cashback credit cards have an annual fee. When selecting the best cashback credit card of 2018, consider the annual fees charged and determine if the rewards justify the fee.
- Redemption flexibility: The best cashback credit cards of 2018 offer reasonable flexibility in redeeming cash. Some cards require individuals to reach a certain amount before redemption, while others allow cash to be redeemed at any time and from anywhere.
Top cashback credit cards of 2018:
- There are numerous providers of cashback credit cards, and choosing the best one requires careful consideration, as what may be ideal for one person may not be for another.
- According to popular opinion, the best cashback credit cards of 2018 are Chase Freedom®, Citi® Double Cash Card, Capital One® QuicksilverOne® Cash Rewards, Chase Freedom Unlimited®, Discover it® Cash Back, Ink Business Cash℠ Credit Card, and Blue Cash Preferred® Card from American Express.
- Some of these cashback credit cards were also considered the best in 2017.
Do all cashback credit cards offer a sign-up bonus?
- Generally, the best cashback credit cards offer a sign-up bonus to customers.
- While many people consider a sign-up bonus when choosing a cashback credit card, it is not advisable to overlook an appealing offer just because it lacks a sign-up bonus. This bonus is a one-time deal and should not be the sole determining factor.
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