What are the best cash bonus credit card offers?

Yes, cash back credit cards are worth it if you page off your balance each month. The best cash back credit cards with the highest rewards rates and signup bonuses sometimes have annual fees. In that case, you need to be sure that what you earn will offset the cost of the annual fee (and then some). For cards that have … read full answerno annual fees, the cash back is free money as long as you don’t get charged interest.

Many cash back credit cards let cardholders earn more than the cost of the annual fee. However, what you really want is a card that allows you to earn cash back as efficiently as possible. Some credit cards give a flat cash back rate for all purchases. There are also cash back cards that will reward you more for bonus categories, like gas, groceries, or dining. The highest flat cash back rate is 2.5%. For bonus categories, you can earn up to 6%. The best cash back credit cards usually require good credit or better for approval, but there are strong offers for people across the entire credit score spectrum.

Wherever you spend the most money on your credit card will determine whether a flat-rate cash back card is better for you, or a card that’ll earn you bonus cash back in specific categories. How many credit cards you want to have in total matters, too, as does your credit standing. The better your credit is, and the more income you have relative to your debt, the more credit card options you’ll have and the more worthwhile they’ll be.

If you’re looking for a new card, check out the best cash back credit cards and find the one that’s most worth it for you. But remember, as with any card, you need to be sure to use a cash back credit card responsibly for it to be worthwhile in the long run. No credit card, regardless of the cash back rate, is worth it if you overspend and find yourself in debt with a damaged credit score. You can also use WalletHub’s free CardAdvisor tool to find a card that best suits your needs.

The short answer is yes, you may want to have more than one rewards card, especially if you get an airline miles credit card. Most airline credit cards are best when used solely for airline spending. And that leaves plenty of other purchases in need of a good earning rate. So it’s wise to fill the void with a … read full answercash back credit card or a travel rewards card that is equally rewarding on all purchases.

Of course, this all depends on whether you pay your credit card bills in full every month. If you do, getting different rewards cards for each of your biggest expense categories is a great idea. But if you don’t plan to pay in full, you’ll save more by using a 0% or low-interest credit card for purchases that will lead to an end-of-month balance.

The practice of using multiple cards to serve a collection of specific purposes is called the Island Approach. And trying it makes more and more sense the better your credit is. People with good or excellent credit have far more options and far fewer fees, after all.

If you don’t know what kind of shape your credit is in, you can check your latest credit score for free on WalletHub.

Cash back works on credit cards by returning a percentage of the money you spend on purchases as a reward. Some cash back credit cards reward cardholders with the same percentage back on every type of purchase. Others give bonus cash back in designated spending categories. Most cash back credit cards give cardholders the choice of redeeming cash back rewards earnings for a statement credit to pay part of the account balance, a paper check, gift cards and more. In some cases, you can also redeem a credit card’s cash back rewards for a bank account deposit.… read full answer

The best cash back credit cards require good or excellent credit for approval, though there are options for people of all credit levels. Similarly, some cards charge annual fees in return for higher earning rates, but many cash rewards cards have no annual fee.

More generally, cash back is one of the three big types of credit card rewards. The others are points and miles, which you’ll see more often with travel cards. On that note, a credit card doesn’t have to be a “cash back credit card” to give cash back. Plenty of rewards credit cards, including some that offer miles and points, have cash back as a redemption option. Redeeming travel rewards for cash back often results in a lower redemption rate, however. True cash back rewards earned with a cash back credit card, on the other hand, are very versatile and don’t fluctuate in value. You can learn more below.

Here’s how cash back works on credit cards:

• Cash back with every purchase: The average cash rewards card offers about 1% back on all purchases. Some cards offer more cash back in certain spending categories.
• Chances for extra cash back: Many cash back credit cards offer initial rewards bonuses for spending a certain amount within the first few months your account is open. Some cards also have bonuses for referring a friend or meeting an annual spending threshold.
• Redeeming your cash: Cash rewards can usually be redeemed for a statement credit, check or direct deposit. You may also be able to redeem for a bank account deposit and set up automatic redemption.
• Restrictions: Some credit card companies make you earn a minimum amount of cash back before you can redeem.
• Cash back expiration: Sometimes, credit card cash back will expire a certain number of months after you earn it or after your card has been inactive for a certain period of time. Usually, it won’t expire as long as your card stays open.
• Rewards devaluation: Unlike points and miles, whose value is set by the card issuer, cash back can’t be devalued.
• Fees. Most cash back credit cards have no annual fee. Many have no foreign transaction fee. Some charge both types of fees, however.

Ultimately, you can check our editors’ latest picks for the best cash back cards on the market to weigh your options.