Cashback credit cards are one of a kind of cards that allow you to earn some cash back on your purchases. Just like other cards, they have APR charges, credit limits and interest, but this additional feature makes them a more affordable solution for making purchases. You will earn some money from each purchase. This is a marketing method of credit card companies that encourage people to use their cards. Also, this can be a good way to save some money from your purchases. So, the biggest advantage of using any other type of credit card and cashback card is the money you get back with the latter.
How do cashback credit cards work?
There are different types of cashback cards, but all of them have an introductory offer. The offer involves giving a higher percentage of cash back than the standard card. Once the offer expires, you will get a permanent rate of cashback. All your purchases will earn you some money back as per the rate you have on your card.
Most of them pay you monthly while some have the paid out as an annual thing. You can spend this money that you have earned while shopping. Some providers also give this money into your bank account. Some of the companies also offer to convert your cash into vouchers that can be used in selected retail shops.
This way, you save money either in the form of actual currency or in the form of vouchers which can be used for further purchases.
The no annual fee cashback cards:
Some companies offer cashback cards with no annual fees. This completely depends on your spending habits. You can plan for your yearly budget and see if the cash back earned through the card is less than the annual fees. If it’s not go for the one with fees as it may give you more flexibility for making purchases and a higher credit limit. This is possible when you can pay off the full monthly bill without any delay.
Best cashback credit cards:
This will depend on your monthly spending. You can plan your monthly budget and see which card provider gives you the maximum returns in terms of money. Also, check the introductory offers by each company and then decide on the one that is the best fit for you. Use FreePriceCompare.com’s comparison tool to select the card that fits your requirements and gives you the max cash in return.