There are a ton of pros of credit cards, one of them being cashback rewards. A cashback credit card bonus is a great way to offset your annual fee while enjoying the benefits of cashback on purchases. Cashback credit cards typically offer 1% cashback on all purchases, but they can also offer higher reward rates on certain categories of purchases.
Here Are Some Cashback Credit Card Bonuses To Consider:
1. Cashback credit cards offer 1% cash back on all purchases
There are many American Express gold benefits to cashback credit cards. Besides the return on your purchases, they are easy to use, too. However, they might not be the best fit for everyone’s wallet.
Here are some tips to find the right one for you. Cashback credit cards tend to have a higher APR than low-interest credit cards. They also come with sign-up bonuses that require a certain amount of spending within a specified time frame. Be sure to review your spending habits to find out whether they’ll benefit you or not.
The Chase Freedom Unlimited Credit Card is another excellent option for those who want cash back without a high annual fee. It earns 1% cash back on purchases of up to $2,000 per year and has no annual fee.
This card also offers 2% cashback at restaurants and gas stations. It also has no cap on the amount you can earn and has no expiration date. With the Capital One Venture Rewards Credit Card, you can earn 1% cashback on all of your purchases.
2. They offer higher rewards rates on purchases made in specific categories
Many cash-back credit cards have rotating bonus categories that offer higher rewards rates for certain purchases. Bonus categories are often announced every quarter by the credit card issuer, and it’s your responsibility to check and activate them.
Bonus categories can increase your rewards earning rate significantly when you make purchases in these categories frequently. But be careful – bonus categories are sometimes not the most valuable categories for your spending habits. You can always opt for flat-rate cards if you spend less on the bonus categories.
To maximize cash-back credit card rewards, choose the category where you spend most. If you spend the most money on groceries, consider cashback credit cards that offer higher rewards rates on those purchases.
These cards are great for families and home cooks. In addition to maximizing your rewards, these credit cards can also help you build credit as they earn points in other categories, such as online purchases. In addition to maximizing your dining and grocery store spending, cashback credit cards can help you build your credit score as well.
3. They offset annual fees
Some people may wonder if cashback credit cards are worth the annual fee. After all, these rewards can be quite attractive – and they can even tempt you to overspend.
However, cashback credit cards can be a real burden if you carry a balance or fail to pay off the balance in full each month. In other words, you’re better off choosing one without an annual fee at all. So how do you choose a card with cashback benefits?
First of all, make sure the cash back rewards can be redeemed for cash. Many cash-back cards have multiple redemption options. They may allow you to redeem cash back for merchandise, gift cards, and bank deposits. Some even offer travel rewards.
Check the terms and conditions of cashback credit cards before making your choice. These cards are best for people who have good credit and are careful with their spending. Otherwise, you may end up with a credit card with an annual fee that is more costly.
4. They’re flexible
Whether you’re an avid traveler or simply want to save money on everyday purchases, cashback credit cards offer a multitude of benefits. Some cashback cards earn 5% back on travel purchases (along with other benefits), while others offer lower rewards on travel.
There are even travel credit cards that allow you to earn cashback for your flights and hotel stays. Regardless of which card you choose, you’ll be sure to find one that works for you.
As with all credit card rewards programs, cashback credit cards reward you based on how much you spend, so you can use them for travel, savings, or other expenses. The rewards can be quite valuable, but keep in mind that carrying a balance will offset them.
As such, you should carefully consider whether the rewards are valuable enough to justify the cost of the card. However, some cash-back cards offer flat-rate rewards that you can use to make purchases in several categories.