How cash rewards credit cards really work
Anymore, it doesn’t make a lot of sense to get a credit card if you aren’t receiving some sort of rewards benefit. If you are going to use credit to make purchases, then you might as well recoup some of that. However, there are hundreds of these types of rewards and cash back credit cards. They may all sound similar, but depending on your spending habits, you would see very different levels of rewards with different cards.
Cash back cards allow you to get “cash back” for your purchases. Rather than getting points for your purchases and then using those points to get various merchandise or travel rewards, you get actual money back (most of the time in the form of a statement credit). What varies from card to card is the amount of cash you get back, in what categories, and how you redeem them.
You want the best possible cash reward card for your individual financial situation. Here’s what to consider as you look for a cash rewards credit card. READ MORE…