Not All Cashback Is Created Equal

Cashback from purchases is one of the most popular rewards from credit cards today. Some people prefer frequent flyer miles, some prefer merchandise, but no one will complain about cash back. Some cards offer a straight percent, usually 1%, on all purchases, but not cash advances and balance transfers. More common are varying percentages, based on which category of purchase. Gas, travel, or online purchases often carry higher rewards.

Some cards may have a fee to participate in the program. It is very important with all credit cards that you look closely over the terms and conditions. They may seem like a lot of legal fine print, but it can make a difference in whether you got a great deal or got ripped off. Another thing to look out for are cards with seemingly high cashback rewards, but with higher than average interest rates. If you are one of the responsible ones who pay their balance off every month, this may not matter. For those who do not, a higher reward for purchases could well be more than offset by the higher interest.

Cashback rewards may be a good deal, especially on larger purchases that you intend to pay the balance off quickly, but do not let the offers entice you into making a purchase you can not afford.