Is Cash Back Credit Card Right for You?
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If you are an enthusiast of heavy shopping and random spending habits then finding the right credit card must be tough for you but perhaps you can find the solution in the form of cash back credit cards. Cash back credit cards can be the easiest way to earn credit card rewards. You can make purchases knowing exactly how much reward you will earn back without having to worry about interpreting the value of points. Credit card issuers offer specific bonus depending on the place you shop and are a better option for people who want to increase their cash back rewards but mostly cash back credit cards give out a standard rate of cash back on every purchase you make. You can find the best credit card 2018 that are offering cash back deals on the internet but here I will tell you the benefits and drawbacks a cash back credit Card can yield and whether it is right for you or not so that you can choose the best credit card according to your needs.
Benefits of Cash Back Credit Cards
The benefits of cash back credit cards are numerous and almost all the cash back credit cards let you earn a 1 – 5 percent cash back reward on every eligible purchase. While other cash back cards offer additional bonuses on particular categories. Following are some benefits if cash back credit cards describe briefly.
Easy to Comprehend – cash back deals are easy to comprehend since the cardholder does not have to decipher the points or mile system and worry about converting the points into cash. The rewards you earn can be easily redeemed for cash.
Cash Back Cards offer Sign-up Bonus – Other credit cards also offer sign- up bonuses but cash back credit cards can boost your earnings by hundreds of dollars. If you recommend another user to the same card you are using then you may be able to get an additional bonus.
Large-scale bonus categories – In addition, to sign up bonus, cash back credit cards also offer a wide range of bonus in different categories such as getting a 2 percent reward on travel and 4 percent on markets so that you can earn cash back rewards at various opportunities throughout the year.
Drawbacks of Cash Back Credit Cards
While the benefits of cash back credit cards may exceed its drawbacks, it is always good to know about the potential disadvantages you can face in the long run when you are using cash back cards.
Credit Score – cash back credit cards usually require their cardholders to have an excellent credit history and impressive credit score in order to issue them a cash back credit card.
Annual Fee – the annual fee structure of the cash back credit cards can vary depending on how much you spend on your card. Moreover, you may need to look out for balance transfer, late payment and over limit of your credit card as it can negatively affect your credit history and negate your cash back rewards in some cases as well.