Apply for a Cash Back Credit Card

Cash back rewards programs are the most flexible of credit card rewards. These programs tend to be less restricted than points or miles because once the rebate is received it can be spent on anything the cardholder chooses. Cash rebates are usually received as gift certificates, credits to the account, or checks written out to the cardholder once the rebate amount reaches a certain minimum.

Rewards are usually linked to a certain brand or spending pattern, and it is important that the cardholder understand exactly which spending activities will generate rebates. Most cards offer a 1% rebate on general purchases and a higher percentage on purchases of specified goods and services, such as gasoline or groceries. Cash rebate programs may appeal to those who want additional benefits from a credit card but do not spend enough per year to earn flights or travel accommodations. Cardholders should also check whether there is a limit to the amount of rebates per year.

Cardholders who choose a cash back credit card should always aim to pay their balance in full each month. Accumulated interest charges will quickly outstrip the value of cash rebates.