Cash Back Credit Cards

Cash back cards are designed for those who pay their balance in full. To choose a cash back card, find the card with the highest cash back rate based on your annual purchase level.

Don't carry a balance on a cash back card, as the interest you pay will surely negate any cash back gains. If you must carry a balance, stick to low rate cards. Below is an example of the cash back levels offered by a major credit card:

Cash Back Tiers
If monthly revolving balance = $0 - $499.99:
$0 - $2,000 spent = 0.25% cash back
$2,000.01 - $4,000 = 0.50% cash back
$4,000.01 - $6,000 = 0.75% cash back
$6,000 and up = 1.00% cash back
 
If monthly revolving balance = $500.00 and up:
$0 - $2,000 spent = 0.50% cash back
$2,000.01 - $4,000 = 1.00% cash back
$4,000.01 - $6,000 = 1.50% cash back
$6,000 and up = 2.00% cash back

So, the more money you spend, the more money you get back. However, be aware that if you don’t pay the balance, the accrued interest will use up any cash back you qualified for.