Tips to choose the best cashback credit card
Credit cards have made themselves an indispensable part of our lives; they offer an amazing purchasing power to people and facilitates easy buying. What makes it more appealing is the fact that the entire process of applying for a credit card is quite easy. Moreover, credit cards help individuals develop good credit habits, and this comes in handy when an individual decides to apply for a loan in the future.
Credit cards are great, but cashback credit cards steal the show! Cashback credit cards are an incredibly amazing way to earn rewards when you spend money and meet the required terms. It’s a win-win situation for both the credit card provider and the credit card holder. The best part of owning one of the best cashback credit cards of 2018 is that you’ll earn rewards irrespective of where and how you use it.
Since a lot of credit card companies offer cashback credit cards, there are certain things you need to consider while choosing the right one. So, if you are shopping for the best cashback credit cards of 2018, here are some pointers that might be useful for simplifying this process.
How does a cashback credit card work?
- Cashback credit cards function almost similar to the other rewards credit card. However, the major difference is that cashback credit cards offer cash instead of points as rewards. It calculates the total value of money you have spent in the particular month and offers you a certain portion of that cash in the form of returns. These cash backs are mostly offered in the form of discounts on particular products, which actually promotes using it.
- Cashback credit card issuers can afford to pay cash back to its customers since the merchants have to pay an interchange fee on each transaction. At times, rewards and rebates can be funded by deals between the credit card issuer and merchant. So, you can rest assured that these cashback credit cards are genuine.
- Every time you use your cashback credit card, you will earn a percentage of the money you spent as cashback. For instance, if you spend $100 on a certain item, and your card offers 2% cash back on the purchase, you’ll earn $2.
What are the factors to be considered while choosing the best cashback credit card of 2018?
- Reward rates: The first factor to consider while shopping for the best cashback credit card of 2018 is the reward rate it offers. A 2% cash back reward is quite appealing for a flat-rate card. However, if you wish for a cashback credit card that offers a cash back of around 5% or higher, then opting for a tiered or bonus category credit card is advisable.
- Annual fees: You need to pay an annual fee to keep using your cashback credit card. Shop for the best cashback credit card of 2018 by going through the array of cashback credit cards, and check the annual fees they charge and determine whether the annual fee is worth the rewards you will be entitled to.
- Redemption flexibility: The best cashback credit cards of 2018 offer the user reasonable flexibility when it comes to redeeming the cash. Certain cashback credit cards require the individual to pay a particular amount before they can redeem it. However, the best cashback credit cards allow you to redeem the cash at any point in time and from anywhere.
Which are the best cashback credit cards of 2018?
- There are a plethora of cashback credit card providers and choosing the best cashback credit card of 2018 involves a lot of deliberation since one’s best cashback credit card might not be the ideal one of the other.
- According to popular opinion, the best cashback credit cards of 2018 are Chase Freedom®, Citi® Double Cash Card, Capital One® QuicksilverOne® Cash Rewards, Chase Freedom Unlimited®, Discover it® Cash Back, Ink Business Cash℠ Credit Card, and Blue Cash Preferred® Card from American Express.
- Some of the above-mentioned cashback credit cards were among the best cashback credit cards of 2017 as well.
- Usually, the best cashback credit cards offer a bonus to its customer when they sign-up for that particular cashback credit card.
- A majority of people often consider a sign-up bonus as one of the determining factors while choosing a cashback credit card. However, since this sign-up bonus is a one-time deal, it is not advisable to simply overlook an appealing offer only because it doesn’t offer a bonus to the customer when they sign-up for it.
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