How To Compare Credit Card Cashback | Personal Finance Analyst

17 Jan

Cash back credit cards are very attractive and are sometimes preferred above other merchant specific reward credit cards. This is because you are in control of what you spend your cash back on, and are not confined to redeeming points at specific merchants.

There are various Cashback offers on the market, and it may be difficult to choose, so this article was written as a guide to show you how to you compare credit card Cashback offers? You can start by focusing on the following areas:

Cash Back Percentage

When choosing your card, look at the percentage of Cashback that the credit card offers. This could range from 1% to 5%. Offers normally include a fixed percentage on named categories like gas stations, restaurants etc, and a lower Cashback percentage on other categories outside the named merchants.

Extra Bonuses Available

While you are free to spend your Cashback at your choice of merchants, some credit cards offers allow you to double your cash back when you redeem at named partners. This is a nice extra which gives you more spending power.

Expiration Date of Incentives

Based on how often you use your credit card, it could take a while to accumulate Cashbacks. The last thing you need is for your rewards to expire before you could spend it. When you compare credit card Cashback offers, choose a card that has unlimited earnings capacity and no expiry date on Cashback earnings.

Redeeming Options

When you are deciding on the best card, keep in mind the places you shop most. Some cards give you double points if you redeem at their partner gas stations, but if you do not shop at that merchant this reward would not benefit you. When considering points redemption find out in which category or at what merchant/s the most points would be rewarded.

Below is a comparison guide to help you see at a glance how to compare credit card cashback offers.

Card Name	Cash Back %	APR	Annual Fee	Extra Benefits
Discover Platinum	5% in named categories1% in all other categories No expiry date	0% for 12 months	None	Double Cashback when you redeem for gift cards or certificates
Bank of America Cash Rewards	1% on all purchasesNo expiry date	0% for 12 months	None	N/A
BP Visa Rewards Card	5% rebate on BP purchases1% on other eligible purchases	0% for 6 months	None	Double rebates for 2 Months
Chase Free Cash Rewards Visa	1 point for every dollar spent	0% for 12 months	None	1000 points with first purchase
Blue Cash From American Express	Up to 5% cash backUnlimited cash rewards	0% for 6 months	None	N/A

From the list above you can see that the differences in the offers are quite small. When it comes to choosing the right cashback credit card, ensure that you chose one that allows you to earn and redeem points in places you do your most spending. This way you know that you will be getting a card that offers you the most cashback benefits.