Are cash back cards worth it?

Answered on February 09, 2018
Updated on February 09, 2018
The content is accurate at the time of publication and is subject to change.
Amy Miller Amy Miller
When you are thinking of applying for a credit card, all factors need to be taken into account, especially if you pay any fees for this card. With cash back cards, it's pretty simple - yes, in most cases they are worth it. Cash back cards give you plain and easy to use rewards that you can redeem on your purchases. So, basically you buy something and then erase its cost with your cash back. If your card has got fees and you tend to carry a balance, first calculate your overall spendings. See how much cash back you will earn with your average spendings with this card and then deduct the fees and interest. If your earnings are more than spendings, then this card is worth applying for. Note that there are cash back cards that have no annual fee at all and offer a 0% intro APR promotional period, so you won't even face any interest payments within this period. Such card is virtually free for you. Don't forget that when the introductory interest rate is over, the ongoing APR will apply. A good example is the Discover it® Cash Back credit card.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

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BROWSE MORE QUESTIONS ABOUT Credit Card Rewards:

You will earn cash back by making purchases at select merchants. These merchants can be found in the Venmo Card section of Venmo app. Earned cash back will be applied to your Venmo account. If you are looking for cash back, we recommend you to apply for cash back credit cards. For example, the Discover it® Cash Back comes with 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate. Plus, unlimited 1% cash back on all other purchases - automatically. Discover will match ALL...
For sure, you may choose from different cash back credit cards. You may find there offers with up to 5% cash back, no annual fee, sign-up bonuses and other perks. Pay attention to credit cards with increased cash back bonus categories. For example, if you spend a lot on gas purchases, credit cards with special cash back on gas category may be your choice.
HSBC Cash Rewards Mastercard® credit card comes with the following cash back rewards: 3% introductory cash back on all purchases in the first 12 months from account opening, up to the first $10,000 in purchases. Get 1.5 cash rewards on every $1 you spend on all new, net purchases after the intro period. If you want to earn more, you may consider other cash back credit cards. For example, the Discover it® Cash Back comes with 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you...

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