It is probably safe to say there are very few people who would turn down free money, and the proliferation of cash back credit cards means that free money is available to just about everyone these days. There are a great many different cash back cards on the market, however, and it is important to choose the right one for your needs.
Not all cash back cards are the same, and it is important to read the fine print carefully. Reading the fine print is always a good idea, as it is here you will find information on the interest rate, annual fee, terms and conditions, etc. The fine print is also where you will find the actual percentage of cash back you can expect to earn on your card.
Just because the big print advertises 5% cash back does not mean you will automatically get 5% of every credit card purchase in your pocket. Most cash back cards use a tiered reward system, meaning that those who charge the most on their cards receive the highest percentage of cash back. It is important to examine your level of past spending to make an educated guess as to what your future spending will be. Knowing how much you are likely to charge in a given month will help you choose the best card.
Of course it goes without saying that cash back cards are most appropriate for those who pay their balances in full every month. The cash back you receive will pale in comparison to the interest rate charged.
After you have your cash back card in hand, it is important to carefully track the amount of cash back you receive each month. Be sure you are getting the cash back you are entitled to.
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