Cash Back Credit Cards

Scroll down for a current list of some of the best cash back credit cards available today.

When it comes to rewards credit cards, some people just want the cash back. And it can be easily argued that cash back is the most efficient method for using credit card rewards. In the past I’ve stuck to cash back as my own preferred reward method. Over the last 2 years I cashed $500 in rewards checks from my credit card use at work alone. Mrs. PT and I also use a credit card for life major purchases. Even though we immediately pay off the balance, we like using the card so that we can get a few cash rewards. Here are my tips for making the most of your credit card cash rewards:

Analyze the Annual Fees – As a general rule, I try and stay away from a card that has an annual fee. However, you should also compare the upside of the rewards vs the annual fee. As an example, if a card with a $25 annual fee gives 3% cash rewards, it’s going to easily beat a no fee card with 1% cash back rewards.

Don’t Chase Rewards – Don’t let the fact that you might get increased rewards for cash back if you spend in a certain category drive your use of the card. If you need something then by all means take advantage of the card cash back rewards. But don’t spend simply to get rewards.

Avoid Carrying a Balance – By carrying a credit card balance, unless you have a 0% card, you will be incurring credit card interest. This interest will likely negate any cash back you could earn by using the card.

Beware of Reward Expiration Dates – Some credit card cash back rewards expire if you don’t use them, or the card after a certain period. Don’t let this happen to you. Set a date on the calendar each year to cash out.

Know Your Cash Back Thresholds – My last tip is to realize when it would be most beneficial to cash out your rewards. Most cash back programs have a threshold at 25,000 points, where your points can be cash out at a dollar for 100 point level. For one of my cards, the $250 cash back is that threshold.