Features to consider when picking a cashback credit card
Any user of a credit card expects a rewarding experience as an incentive for the spending, and reports have shown that applicants first seek out reward systems of credit cards before evaluating it based on interest rates and relevant criteria. One of the most commonly sought out reward system is cashbacks as these rewards provide the cardholder with the satisfaction of getting back some of the costs spent through the redemption of points accumulated based on use. Compared to travel rewards-oriented card that has way too many restrictions and needs a certain level of precision when redeeming points, cashback credit cards have way lesser restrictions and flat out reward rates that can be benefitted at any point in time. There are cards out there that allow for cardholders to directly redeem their points to payback their credit card dues and directly have a significant impact of their debt directly. The direct benefits of getting your credit card dues down will definitely impact positively on the credit score, and that is definitely a positive for the cardholder. To get out the best of a cashback credit card, one should navigate through your interests and align them with the card offering them so that the returns are optimized in the best way for you.
There are some pro tips that you should remember when picking out cash back credit cards so that your reward point accumulation is not hindered in any way.
- Stick to a cashback credit card that best benefits your lifestyle rather than trying to adapt your spending to your card’s benefits.
- When trying to cash in your points for redemption plan strategically and don’t save on the reward points till the last moment of redemption.
- Always sign up for the quarterly bonus categories that your cashback credit card allows, this will ensure that you get those additional benefits during the off or peak seasons. At the least, you will at least be aware of what benefits are upped for that particular quarter.
- Use the assigned portals and rebate coupons to your advantage rather than simply relying on direct transactions to get maximum cashback.
- Keep a check on your spending caps and never ignore it.
- Don’t simply pick a cashback credit card based on its sign-up bonuses.
- Don’t simply sign up your cashback credit pay for all “autopay” features.
- Don’t carry unpaid dues on the cashback credit cards as the credit card issuer has the right to suspend the rewards program if they find that you have crossed the allowable due limit according to their policy.
- Remember that you are not actually avoiding any form of foreign transaction fees.
- As you grow, your needs would change. So, do not stick to the same card, try to pick a better option as you progress forward.
Some of the best cashback credit cards on the market are listed below and classified according to their best features:
Best cashback credit card for everyday spending: Blue Cash Preferred®️ Card from American Express
Best cashback credit card for reward redemption: Chase Freedom Unlimited®️
Best cashback credit card with exclusive first year reward offers: Discover it®️ Cashback Match™
Best cashback credit card without annual fee: Capital One®️ Quicksilver®️ Cash Rewards
Best cashback credit card with great categories for bonus rewards: Chase Freedom®️
Best cashback credit rewards with outstanding offers for gas: Costco Anywhere Visa®️ Credit Card by Citi
Best cashback credit card with special relationship bonuses: Bank of America®️ Cash Rewards Credit Card
Best cashback credit card that offers a flat rate on cashback points across all types of transactions: Citi®️ Double Cash Card
Best cashback credit card with specific travel offerings: Discover It®️ Miles
What are the pros of getting a cashback credit card?
Most of the cashback credit cards do not usually have an annual fee and most of them even give you the option of redeeming your accumulated cashback points as statement credit as part of your credit card. To keep up with your normal spending pattern, getting a cashback credit card that awards flat reward points for all types of transactions can prove to be highly beneficial in savings. To get a bump on those savings, you can consider having a strategic spending pattern that goes along with the normal transaction cash back rewards with the rotating categories every quarter.
What are some of the downsides of getting a cashback credit card?
Some cashback credit cards have a strict limit on the amount of allowed cashback point accumulation and how those points can be redeemed. Some of the signup bonus features are very substandard and not that beneficial and picking a cashback credit card can be tricky because each card has different allowance patterns. The value maximization on cashback credit cards is a hit or miss game for individuals who do not manage their spending patterns well.
