Are Cash Back Credit Cards the Best Reward Cards?
Cash back credit cards are the best reward credit cards available today. The reward credit market is not what it once was five years ago. Cash back credit cards offer the best deals today. Many of the general reward credit card programs from banks have been discontinued. Cash back programs are easier to manage. Rather than managing a complex award program with an inventory of merchandise, cash is very straight forward. Consumers love receiving cash back bonuses. Banks love that cash back reward cards are easier to manage because they offer straightforward cash reward structures.
Cash back cards are the most popular with consumers today because many cash back credit cards have no annual fee. Cash rewards are earned immediately without a cumbersome annual fee to offset cash reward gains. Many consumers have used credit less in the past years. A reward card with a yearly fee can be counterproductive. Airline cards are a good example of this. With airline cards, it takes thousands of points to earn a free flight. Also, the annual fees on these cards are some of the highest in the industry. Some airline credit cards have annual fees as high as $80.00. Keep in mind airline credit cards are good reward cards for some people. In a previous article called, Airline Credit Cards May Not Be the Best Deal the pros and cons of airline credit cards were discussed.
When to Avoid Cash Back Credit Cards
Cash back credit cards are best for people who pay off their credit card balances every month. To achieve the most benefit it is best not to carry balances from month to month. Cash back credit cards tend to have higher interest rates than other credit cards. If you carry balances from month to month, you will lose all the benefits that this type of reward credit card has to offer. The interest you pay will be higher than your cash back bonuses. If you are a revolver, a person who does not pay their balance in full each month, a cash rewards credit card is not right for you. The best option would be for a low fixed interest credit card with no annual fee. The savings in interest of these low fixed credit card offers are their reward.
There are many advantages of having a cash back credit card. The best cash back credit cards will offer no annual fee and provide the opportunity to earn bonus cash rewards.
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