The Pros and Cons Of Cash Back Credit Cards


The good, bad and the ugly of cash back credit cards.

What is there not to like about getting a credit card that offers cash back for purchases? Seems like a no-brainer. What could be better than getting cash back on all the purchases that you make with your credit card? Let's take a closer look at what is going on.

Sure some cards give you free cash, but it is not what you think. It is usually only around 1% cash back. It is still cash back, though, don't forget that.

If you are a big time spender this kind of credit card probably appeals to you. However, you need to keep in mind that they are not going to give you cash back on every purchase that you make. It doesn't work that way, even if they claim they do. What happens is they will only give you a certain amount per transaction. This is because the company also has a strict limit on the amount that they will give back to their customers. Once you read the fine print on the agreement you will see a couple of paragraphs detailling all of this. Hey, but who reads the fine print on anything.

This is their way of winning new customers over to their company. Another thing you might want to keep in mind is that they generally will check your credit history. Sure, they will give you cash back but they want people who pay on time.

That's not to say you cannot get a credit card that offers better than 1%. Research different credit card companies to see what they are offering. You may be surprised to find a cash back credit card that offers you just what you need and want with a high cash back percentage, few limits on the amount they will give you back, and instant cash deposits when you make each purchase with their card.

Although these credit cards seem like a great thing to have, some companies will need your credit rating to be great too. However, there are credit card companies that offer these cards to people with a low credit rating to help them rebuild their credit. Research all of your options.

So what's the story? Go for the cash and savings? Or stay with your present vanilla card? Well, if you have a good credit rating, and you are a big spender, go for it. It is all win-win. But you've got to do your homework and check them all out. There are good ones out there that offer 3% cash back and impose very few limits. If, however, you have a bad credit rating, you might want to find a credit card that will help you rebuild your credit.


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