The promise of getting some of the money you have already spent back is enticing. This is why many people rush to apply for cashback credit cards. However, you should know how to pick the best ones to enjoy the most benefits. Here is what you should consider when making the decision:
- How much money will you get back?
The cashback rewards vary from card to card. However, they range between 0.5% to 1%. Sometimes the card issuers will indicate 2-6% cashback rewards. This is tempting, but before you get the card remember that you will have to pay an annual fee in such a case. Also, there will be a qualifying spending limited to certain categories. The qualifying categories keep on changing which makes it difficult for you to reach the required spending goal.
- Will you have to pay annual fees for the cashback credit card?
Some cashback credit cards will have annual fees, but others don’t. It would be better if you can avoid paying the annual fees. However, if you will be getting cash rewards that are higher than the annual fee to be paid then get the credit card. Nevertheless, read the fine print carefully. The credit card issuers impose restrictions that make it more difficult to earn cashback. In addition, qualifying categories can change as often as 3 months which makes it difficult to reach the required spending goals.
- What purchases qualify for cashback rewards?
This depends on the card you have. If the offer is 0.5 – 1%, you will get cashback on all purchases. However, spending within certain categories will get you a much larger cashback return. Nevertheless, it will be hard to reach the target for the qualifying categories because they change on a quarterly basis.