Who doesn’t like cash back — spending money using credit cards is bound to happen, so why not get some of that money back in the form of cash rewards? Cash back credit cards are some of the most valuable cards to have in any wallet or business because they accrue rewards in the form of cash to be cashed and deposited into a bank account or applied toward the balance of an account statement. There’s no end to the number of cash back credit cards on the market – including Discover, Bank of America, American Express, Visa and MasterCard. Cards that offer cash back also appeal to specialty needs – whether that means donating a portion of money based on purchases to a favorite charity, helping reduce college education costs or using cash back rewards to boost retirement accounts.
Types of Cash Back Credit Cards
There are cash back credit cards for every interest and as a result, these credit cards are highly popular – especially for those who want tangible rewards without applying them to airline miles or travel accommodations. Since not everyone travels or has a need to earn thousands of miles in a year, the cash back option is appealing for many credit card users. Types of cash back credit cards include:
• Fidelity Investment Rewards Card from American Express
• State Farm Crystal Rewards Visa Signature Card State Farm Crystal Rewards Visa Signature Card
• Discover Business Card
• Bank of America AAA Member Rewards Card
• Wells Fargo Cash Back College Card
Credit cards are designed for personal use, though some cash back credit cards are also created for business use in mind. While all of these cards offer rewards back in the form of cash, the cardholder can browse through the different options to find a credit card that suits their needs or lifestyle.
Benefits of Cash Back Credit Cards
Aside from the obvious cash back rewards, there are plenty of benefits of signing up for cash back credit cards. Depending on the financial institution used or specialty category, cardholders can apply for cards that offer cash back in the form of a check, or have it applied to the statement balance each month. Other benefits include earning money to apply to a retirement account, such as with the Fidelity Investment Rewards Card, or help out a favorite charity by signing up for a card like the Susan G. Komen Cash Rewards Card, which offers donations to the charity through each purchase or card renewal. These options allow cardholders to do good things while spending money.
Annual Percentage Rates and Fees
Depending on the cash back credit cards selected, the annual percentage rate and other charges – such as the annual fee – vary. For example, the Discover Business Card does not require an annual fee and charges interest between 12.99 and 19.99%, while the State Farm Crystal Rewards Visa Signature Card features an APR between 13.24 and 20.24% — still lower than many competitor cards.
With the vast number of cash back credit cards available, it pays off to take time and research the ones that give back in ideal ways for spending habits or needs.