Best Cash Back Credit Cards
Wouldn't it be great to get back cash for spending through a credit card. Well, unfortunately, it's a daydream, well not in total. The cash back plan (also spelled as cashback) is a common facility that is found in several credit cards. But let me tell you the big bubble blower. You do not get a huge amount as a cash back, it is small but reasonable.
What is a Cash Back Credit Card
The first question that would pop up in your mind about this wonderful credit card is, what is this wonderful facility of cash back credit cards? Well the mechanism is fairly simple and very common. When you walk into a shop and make a purchase, the credit card is swiped through a specified machine. This machine, the programing installed there in, and the entire mechanism is provided by the credit card company or a bank. The provider of the facility which is usually a credit card company, charges a commission for the provision of this facility. Thus, when you complete a transaction, the seller also has to pay the company a specified sum, just as the way you pay the APR (Annual Percentage Rate). The commission is either charged for every transaction or is charged on a time period basis (such as a month or a quarter or a year). The collected amount is shared by the credit card company with their credit card users who have subscribed for cash back cards or programs. Some companies provide cash back based upon the nature or destination of the entire translation. For example, for amounts spent on groceries, gas or medicine will get you a cash back.
There are several ways in which this credit card plan/programs work. The most common ones include, card holder points, credit amount, forgiveness of the credit card bills, air miles and in some cases a monetary amount. Card holder points can be used as cash to purchase from some specified shops or from specified enterprises. Air miles are the points that can be treated as cash to buy airline tickets. Credit and bill forgiveness is the amount that would not be charged to you for using the credit card.
The big bummer in the entire story is that you need a really good credit report, credit score and an overall spic and span credit history to get a cash back plan. The better is your bill payment history, more are your chances of getting such a card approved.
Best Cash Back Credit Cards of 2011
The best cash back cards usually have stringent conditions and in very honest words, though the offer sounds very nice, the ratio or percentage of cash back is very less, even in case of the best cash back rewards. Credit cards with such cash back plans have several terms and conditions, and hence before you take up any such credit cards, take a deep look at all the terms and conditions for use. Here are the examples of some of the best cash back credit card.
- Chase Freedom Visa $150 Bonus Cash Back: This card can be availed at an excellent credit score, and for the first 3 months, $150 for $500 is provided as a cash back. A 5% quarterly bonus issued against amounts spent for certain commodities. A further 10% cash back is also provided for expenditures through Chase approved merchants. APR is between 11% to 12%, and may differ. Other terms and conditions apply, hence take a look at the entire plan.
- Discover More Card $100 Cashback Bonus: This card is another cash back plan that requires an excellent credit score. It provides a $100 cash back against $500 worth of purchases. 5% cash back is also provided for certain specified categories of expenditures. The APR is variable for this card and ranges from about 11% to 21%. Other terms and conditions are also applicable for this credit card and hence have a good look at the plan.
- BankAmericard Cash Rewards Visa Signature Card $50 Cash Back Bonus Offer: As the name suggests, a cash back bonus of $50 is provided as a statement credit after a $100 worth of retail payments, for first 60 days of the plan. This credit card is provided against an excellent credit score. This plan also provides for 3% cash back against gas, drug store and grocery store payments. Similarly, 1% cash back is also provided against other purchases.
