Cash back credit cards

The credit card industry is very competitive and in order to attract customers the credit card companies often need to offer customers rewards. These rewards can be almost anything but the most popular is probably cash. Cash back credit cards are very common these days and in the right circumstances they can be a good deal. But you do have to be careful to make sure that you actually are getting a good deal.

Obviously the great thing about cash back credit cards is that you get cash back. The amount that you get will likely be pretty small, one or two percent of what you spend is normal, but that is still money that you otherwise wouldn't have. There are lots of cash back credit cards out there so you will have no trouble finding one. However you should keep in mind that a cash back credit card isn't always a great idea. You will want to put some thought into whether or not it makes sense for you.

The biggest danger of a cash back credit card is that you will take a card just to get the cash back and ignore the other terms. People here the phrase cash back and they jump all over it. However if you end up taking a credit card that has a higher interest rate than you would have to pay otherwise you really aren't doing yourself any favors. The higher interest rate will cost you far more than any money that you get back. This is something that you really have to pay attention to so that you can make sure that you don't make a mistake in choosing your credit card.

The other thing that you are going to want to be careful about is that you don't over use your credit card just to get your cash back. This is one of the real dangers of any rewards card; people tend to use them more often because they want to increase the amount that they get back. The problem of course is that unless you pay your bill in full as soon as it arrives you will end up paying more in interest than you get back. The decision on when you should and shouldn't use your credit card should not be made based on the rewards that you get.

While cash back credit cards are great they are often the least valuable in terms of the rewards that they offer. If you are saving up for something specific you may want to find a card that offers that as a reward since you will likely get more from your card. For example if you are saving to take a trip you would be far better off with a travel rewards card than you would be with cash back credit card. You will get far more in terms of rewards.