Cash Back Credit Cards

A cash back credit card offers you a percentage of your total purchases back as a form of rebate. You literally get cash back at the end of a billing statement or year.

The amount of cash back the credit card offers varies by company. Some cash back cards offer a set 1% of your total purchases back in cash while others offer a higher percentage back on items purchased from certain merchants. Still others graduate the amount you get back in cash based on your total spending and how long you've had your account.

Cash back credit cards are a form of reward credit card that cost issuing banks a fair amount of money to operate. To recap this expense, you can expect a cash back card to have an annual fee and possibly a higher interest rate than more standard credit cards.

A cash back card is an excellent choice if you spend a significant amount on a credit card but pay off the balance every month.