As we all know it, many people are against using credit cards. They say that using a debit card or cash is much easier and keeps you out of debt. Yes, they can keep you from debt, but so can being disciplined.
The reasons I don't use cash or a debit card are because you don't get rewarded like you do with a credit card. Not to mention, if you lose your wallet and cash is in there, it's most likely gone for good. Although, with a credit card you're only responsible for a small portion instead of everything.
Credit cards are great for many reasons, but if I had to choose the one I like using best, it would definitely be a cash back credit card. Why? Simply because every time you make a purchase you're paying less than you would with a debit card or cash. You get cash back on every purchase you make which really adds up overtime! Although, what makes a cash back card the best? Continue reading below to find out what you should look for in one.
High percentage: First of all, you want to find a cash back card that has a good percentage. Meaning, when you buy something you'd rather have 10% back on your purchase than 1%. So, find a card that is willing to give you great percentages back on each purchase.
Low interest rate: Also, find a card that has a low interest rate. If you're someone that doesn't pay your balances off in full each and every month, this really matters to you. I'd say anything under 15% is pretty good, although anything higher or over 20%, you're getting pretty steep. Each time you don't pay your balance in full, you'll be paying a great amount of money when it comes to interest.
Great reviews: It is also good to get the opinions and hear the thoughts of others. You will most likely know a good cash back card when you see one because people will talk highly of it and recommend it. Although, if it doesn't reward you or do much for you, you'll hear that too! So, check out the reviews on the cards that you're considering because you apply!
Good rewards: Make sure that the card you're interested in has good rewards. I know some cards allow you to turn your cash back into gift cards and other prizes. While others let you take your cash back and put it towards your monthly statement. What kind of rewards are you looking for? If you want something specific, make sure it's included with your card!
There are several credit cards on the market, but not many are as rewarding as a cash back credit card. How often do you get to save money on every single purchase you make? If you have the opportunity to save more and spend less wouldn't you take it? Not to mention, you have the convenience of using a credit card and never having to go to the bank to get cash!