Those who pay their credit card balances on time and in full each month  should be using a rewards credit card. Although many cardholders enjoy their rewards in the form of loyalty points such as frequent flier miles, cash back remains the most popular type of rewards card.

Unfortunately, while cash back rewards can seem like a simple concept, there are dozens of cash back reward cards being offered by nearly every bank.  Among all these cards are three basic types of cash back rewards.

Fixed Rate Cash Back Credit Cards

The simplest types of cash back credit cards are those that offer a fixed rate of return on all purchases. These cards typically offer between 1% and 2% cash back. Once cent per dollar spent is the most common rate of return, and it represents the minimum that any reward card holder should expect. Continue Reading »

While Black Friday and Cyber Monday promotions tend to capture the spotlight during the holiday shopping season, consumers looking for excellent deals might find that cash back credit cards offer as good, if not better promotions than so-called “door-busters”.

This holiday season a number of major credit card companies are offering consumers substantial cash back sign-up bonuses of up to $200 that can go a long way in reducing holiday credit card bills. Other credit card deals provide slightly lower sign-up bonuses, but 0% interest rates that can prevent the cost of holiday gifts from escalating for those who need a little extra time to pay off expenses.

Here are noteworthy deals worth considering:

1.) Citi Dividend Card with $100 Cash Back:  While not the largest cash back deal available this season, the Citi Dividend $100 cash back offer is an ideal card for consumers who will be paying off holiday purchases over time as well as for those who currently have high rate balances on their credit cards. The Dividend card offers a 0% interest rate for 15 months on new purchases and balance transfers. This intro period can be used to pay down existing balances as well as to prevent new purchases from racking up interest. Plus, consumers who spend $500 within three months get a $100 cash back reward on top of the 1% to 5% that can be earned year round. Continue Reading »

It has gotten difficult to watch TV and not see a Chase Freedom rewards card commercial. The recent marketing onslaught, which shows consumers opting for the largest cash back credit card getting pummeled by quarters, is a not so subtle attack on Discover. Nevertheless, it does highlight the key differences between the Chase Freedom card and competing cash back cards that advertise, but fail to deliver in the cash back rewards arena.

Chase Freedom Cash Back Rewards Overview

The Chase Freedom card’s cash back rewards program is among the best available and Chase backs this up by offering applicants massive sign up bonuses. At present, the Chase Freedom $200 promo is the largest, but there is also a Freedom card with a $100 bonus as well as a third version with a $50 bonus. While the promotional bonuses attached to these offers vary, the underlying Freedom rewards program is the same. Card-holder’s earn 1% cash back on all purchases, plus 5% cash back on up to $1,500 of purchases in categories that rotate four times a year. Apart from the limits on Freedom’s 5% cash back reward categories, there is no annual limit on cash back earnings. Continue Reading »

Every three months, 5% cash back credit card categories on the Chase Freedom, Citi Dividend and Discover More cards refresh. Typically, bonus cash back categories align with seasonal spending habits and this trend holds true ahead of the holiday season. This fall, Citibank is offering the most consumer friendly 5% cash back options, though Chase is not far behind. Discover, on the other hand, has mediocre and very limited bonus opportunities.

Citi Dividend 5% Cash Back Categories

The Citi Dividend card’s fourth quarter 5% cash back bonus categories are clearly tailored to family Christmas shopping. From October 1st until December 31st, card-holders earn 5% cash back on purchases made at department, clothing, electronics and toy stores. This essentially covers retailers from Macy’s to Best Buy. In other words, just about anywhere a person shopping for their family would need to shop qualifies for a nice discount. Continue Reading »

In advance of the holiday season, Citibank is releasing a Citi Dividend $200 cash back promotion. This offer is very similar to the Chase Freedom $200 offer in terms of sign up bonuses and long term rates.

However, while the Citi Dividend $200 offer is extremely generous in the sign-up bonus department, consumers interested in this card should also consider the Citi Dividend $100 cash back card, as this less generous offer does provide a long lasting 0% introductory rate on purchases and balance transfers.

The 0% rate feature offered on the $100 version of this card could end up netting consumers greater savings, as those who carry balances from month to month could save more on interest with the $100 offer than they could by opting for the $200 offer. Continue Reading »

Consumers thinking about ditching their current credit cards will be pleasantly surprised to learn that a slew of credit card deals are presently available that offer substantial sign up bonuses which can be worth upwards of $625. Of course, some of these cards do carry annual fees, but even those that offer the richest incentives waive these fees the first year.

The primary consideration one must make when opting to apply for a credit card deal with a lucrative sign up incentive is the long term value of the offer. While pocketing $625 just for swapping credit cards is nice, it is more important to find cards that offer good value as well as eye-popping bonuses.

Consequently, consumers who don’t use their cards heavily or tend to carry a balance from month to month should stick to 0% balance transfer or no annual fee rewards credit cards with lower interest rates, while those who are adept at managing credit accounts and maneuvering through rewards programs should focus on credit card deals that offer generous incentives, but also good long term rewards earning potential. Continue Reading »

Airline and cash back credit cards are the most popular type of rewards cards amongst consumers and credit card companies have been acting aggressively in both segments to lure in new customers. In the past, cash back credit cards typically offered little if anything in terms of sign-up bonuses. That is not the case today.

Credit card companies want consumers using their rewards cards for two reasons. First, consumers who earn rewards tend to be more loyal than those who don’t. This leads to higher transaction volume and thus more revenue for the banks. Another benefit reaped by banks pertains to the fees charged to merchants on every transaction. This is an important revenue stream and banks are able to collect more from merchants when consumers swipe rewards cards than they do with other offers.

This, for better or worse, is the reason banks are rolling out the red carpet for consumers seeking cash back credit cards. Here is a breakdown of the most lucrative promotions currently available to consumers and thoughts on how best to choose between these offers. Continue Reading »