When you are looking for the highest cash back credit card, it may be tempting to go with a card that offers air miles instead of cash back. But there are several things to consider before choosing this type of card. First, the card needs to offer frequent flyer miles. These can only be earned once, which makes them useless for people who travel a lot.
So the question becomes, does this type of card really offer the highest cash back credit card rate? The answer depends on what airline rewards program is being offered. Some cards offer frequent flyer miles as an additional sign up bonus. Other cards charge a fee when you make a purchase and get nothing in return.
If you fly often, a card with air miles might be the best choice. However, it can be costly depending on the airline carrier you choose. It might take several years of payments to earn enough miles to give you the equivalent of one annual return ticket. On top of that, most card companies have limits on the number of miles you can collect. It's usually best to get a card that offers cash back if you plan on using it primarily for airline miles. Otherwise, you may end up spending more on the interest fees than the cash value of the credit card itself.
Another consideration is the minimum payment on the credit card. Most cards offer a variety of payment plans, but it's wise to choose one that you can pay on time every month. This also eliminates the possibility of missing a payment and owing extra money. Some credit cards charge a fee every time you make a payment, but it is likely cheaper to pay the fee for one credit card than numerous credit cards. You might also want to consider getting a credit card that offers an incentive to use it like cash back or points toward free gasoline.
As you compare credit cards to find the one that will offer you the most cash back, be sure to examine all of the terms and conditions. Many cards require frequent billing cycles, annual fees and other fees, which can add up very quickly. For this reason, many credit cardholders wind up paying a large amount of interest by the time they end up using the card to pay for items. Instead, they should get a card with a lower interest rate and better fees.
If you're looking for the highest cash back credit card, there are several cards you should consider. And even before you make your decision, it's a good idea to review all of your financial information so you'll know which card is best suited to your needs. It's important to remember that the rate, fees and terms will change over time. Therefore, it's important to keep your credit card information current so you'll be able to keep the card and enjoy all of the rewards programs associated with it for years to come.