While most cash back credit cards carry relatively low interest rates (especially when compared to airline credit cards), some of the most generous cash back credit card offers carry higher interest rates than less generous ones. If you pay your credit card balance in full every month, this isn't a huge issue. However, if you carry balances from month to month, the best cash back credit card for you will likely be one with a lower interest rate, even if you won't earn as much cash back.
For example, if you choose a card that offers 5% cash back on gas and groceries, but charges a 17% interest rate, you'll likely benefit significantly less than you would with a card that only offers 1% cash back, but charges a 12% interest rate. Ultimately, the key to profiting the most from a cash back credit card lay is to select a card that matches your credit usage style. If that means passing on a juicy cash back deal for a 0% APR credit card with a lower rate, then by all means choose the card with the lower interest rate. If you're wasting cash on interest, you're not going to benefit from getting a little extra cash back.
Cash Back Credit Card Tips and Resources
Credit Card Rewards Calculator: This calculator allows you to plug in your estimated spending in specific categories such as gas, groceries and travel so you can get an estimate of how much cash back you can earn in a year.
Cash Back is the Best Credit Card Reward: Cash is king, period. Rewards points and airline miles have benefits, but cash back is the only type of credit card reward that can't lose value and can be used however you want.
How to Earn Credit Card Rewards: With the right cash back credit card, you can earn a few hundred dollars a year. The key is to use your credit card as much as possible and pay your bill in full each month to avoid interest. In this article, you can learn how I earn about $600 a year in cash back from my credit card company.
