Cash Back Credit Cards Make Sense For Nearly Everyone, Here Are 4 Reasons Why

There is no reason to hesitate if you’re on the fence about taking advantage of a cash-back credit card. The idea that a credit card will give you “free” money just for shopping might seem too good to be true, but this is very much the reality of what is happening. 

The hope is that whenever someone uses a cash-back credit card, they do so in a way that earns them enough rewards to make sense. In my case, I earn enough rewards every year to pay for all the holiday gifts I need for my family, which puts a little bit of extra money in my pocket. 

Given the benefits, let’s explore why you should immediately get a cash-back credit card. 

You’re Already Spending

This reason is likely to be the most obvious, but charging something you were already going to buy on a credit card that earns cash back seems like a no-brainer. If you’re already going to make a purchase, why not get something? 

The reality is that you’re just getting “paid” by the credit card company for purchases you are already making or bills you are already paying. Of course, the credit card company hopes that cash-back rewards incentivize you enough to spend even more, but if you’re already buying that television, why not earn something back for both big-ticket and small-ticket purchases? 

It won’t surprise debit card users that using this payment method offers almost no benefits and even less security. Instead, you get cash back with a credit card, purchase protection, and an extended warranty. 

Plenty Of Flexibility 

While it might seem overwhelming to consider how many different cash-back credit cards exist in the world, you can quickly start narrowing down which one(s) might be right for you. First and foremost, start thinking about which categories you spend the most in, whether it’s gas, food, clothing, dining, etc., and rank these in order. You can then begin to look for a card that offers the best benefits in this category, the following category, and so on. 

For example, some credit cards offer 3% cashback on gas station fuel-ups. Separately, one popular cash-back credit card provides 6% cash back on every grocery store visit, up to $6,000 in yearly purchases. You can even get 6% cash back on select streaming subscriptions using the same credit card, making it one of the more appealing choices. 

Alternatively, you can select a flat-rate cash-back credit card that offers you between 1.5% and 2% on every purchase, making it very simple for you to choose. 

Very Straightforward 

While travel benefit credit cards are popular, they often come with blackout dates, fees, and other hurdles you must jump through to take a trip. This isn’t the case with a cash-back credit card, which requires nothing other than your desire to go out and make a purchase. 

In fact, instead of a fee-based structure, you’ll find sign-up bonuses where the credit card company will give you extra money, usually between $250 and $500 in “free” money just for spending a minimum amount in the first 90 days of card use. 

Even if you choose a rotating category card, it’s straightforward how these categories change every quarter, so only a minimal learning curve is required to start earning. 

Easy Redemption

Everything good about cash-back credit cards would fall apart if you couldn’t quickly redeem the balance. The good news is that credit card banks do not have timelines for when you need to redeem, and there is almost always no limit to cap your earnings either. 

This means you can use your balance after accruing it for five months, two years, or five years, it’s entirely up to you. Better yet, you can apply the cash-back value toward your balance, deposit the money into a bank account, or, in some cases, use the value toward gift cards for your favorite retailer, such as Amazon, Walmart, or Target. 

In some cases, several different credit card brands let you use your cashback total directly on Amazon. You can then use your balance to apply it toward a purchase, saving some money.

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