5 Tips for Finding the Best Cash Back Credit Card

by : Beth Derkowitz

Cash back cards can be great if you use your credit card for a lot of purchases and pay off the balance quickly. Using the card a lot means that you earn more cash back, and paying it off right away means that you don't lose what you earn to interest charges on the balance. Most cash back rates are around 1% of the total purchases, before finance and interest charges. Here are five tips to help you choose the best cash back credit card for you:

1. Consider your credit needs and habits. How much do you use your credit card? Do you use it more on certain vendors or types of purchases? Do you tend to pay of the card each month, or carry a balance? Are you looking for a high credit limit? What about extra services and perks?

2. Consider which card features are most important to you. In addition to cash back, are you looking for a low APR? Is it important to have no annual fee? Are you looking for a card that also offers extra services? Considering how important specific features are to you can help in narrowing down your choices.

3. Compare several cards to find the best one. There are all sorts of combinations of terms and features available from different companies, so it's a good idea to compare several cards that meet your most important criteria.

4. Don't lose sight of what's important to you. If the most important feature for you is getting the most cash back, avoid getting sidetracked by special deals that offer less actual cash. Special features are great – as long as you're also getting what matters most to you!

5. Check several sources of information. The Federal Reserve publishes a survey of credit card terms every six months, and there are lots of websites where you can compare offers. Check a variety of sites to view as many options as possible, and then narrow your choices down to the ones that really suit you.