A Guide to Cash Back Credit Cards (Kredittkort Med Cashback)

You should know that cash-back credit cards are reward options that will offer you a small percentage of money on each purchase, which you can later use as a reward. They can help you simplify your finances, earn rewards you can handle on spending options, and use various rewards you would not get with a debit card.

Since cash-back options are more straightforward to understand than traveling rewards, it is an excellent solution if you wish to get a First Rewards credit card. Of course, cash-back credit cards or cashback kredittkort feature many pros and cons that will affect your decision and provide a clear perspective.

Everything depends on your spending, but you may choose other reward card programs.

What is a Reward Card?

You should know that reward cards represent a wide array of options from a credit card provider, meaning you will get offers that will provide you with specific discounts to help you earn money as you spend it. Apart from choosing various reward structures, you should know they vary based on the terms you can redeem.

In most cases, you can redeem your rewards for statement credit, cash, gift cards, merchandise you can purchase from a specific portal, or different travel rewards. After each billing cycle ends, you will get additional rewards based on the amount you spent, which will appear on a statement.

Numerous credit card companies will offer you introductory bonus rewards, which will help you determine the best course of action. We are discussing offers that may feature hundreds of dollars of incentives if you reach a specific spending threshold in a limited period. If you wish to get a specific reward credit card, you should consider a few features beforehand.

  • Annual Expenses – Before choosing a reward card, you should check out the annual fee that will help you narrow your search. Of course, you can find options that do not feature annual expenses, but the ones with the most significant rewards, in most cases, do have them. Therefore, before signing up, you should weigh the costs of the annual fee against the amount you will collect throughout the year. By entering here, you will learn more about consumer regulations regarding credit cards.
  • Interest Rates – You should know that numerous reward cards will offer you a promotional zero-percent APR for the first year. However, you must pay the monthly balance, which may lead to severe expenses and interest charges. Generally, the overall percentage of reward cards is between fifteen and twenty-five percent, but the rates can be higher.
  • Fixed or Tiered Rewards – Some cards feature tiered reward structures, meaning you will get various levels of rewards for different purchases. For instance, tiered cards will offer you three points for each dollar on gasoline but only a single point for groceries. On the other hand, fixed-level options will pay the same amount no matter where you use them. For instance, cash-back options offer you a one- to five percent return on purchases.
  • Cashback Spending Caps – Most cashback cards will cap your earnings, especially regarding lucrative spending. For instance, a card can pay you three percent cash back for the first two thousand dollars on groceries but only one percent for additional expenses in the same category until the end of a quarter.

Advantages of Cash-Back Credit Cards

1.   Cash Rewards

Each credit card features a specific earning scheme that depends on numerous factors. At the same time, they can offer the same simple-to-use and straightforward benefit, meaning you will get cash for each dollar you decide to spend.

Some options feature a flat rate, meaning you will get two percent on all purchases. Others will offer you higher levels of cash back on specific categories of purchases, such as groceries or gasoline. Of course, the categories rotate each quarter, meaning you should check out the options beforehand.

2.   Annual Fee

Remembering that most cash-back options do not charge an annual fee would be best. It means you can rest assured that they will not sacrifice a reward for a fee. Instead, you can use the amount you take without any additional hassle. Of course, the better your credit score, the better terms you will get, meaning people with lousy creditworthiness may not get relevant terms.

3.   Welcome Bonus

Similarly to other reward cards mentioned above, you can rest assured that cash-back credit cards will offer you sign-up bonuses that meet the minimum requirements within a few months. These bonuses will be worth hundreds of dollars, but you must make a significant expense beforehand.

4.   Shopping Rewards

You should know that specific cash-back cards, like other travel cards, will come with benefits that will allow you to safeguard purchases, which will save you money overall. Check out this link: https://www.uscis.gov/pay-with-a-credit-card to learn more about paying with a credit card.

These rewards include the lowest advertised price match, return guarantees, extended warranties, and refunds if a store does not accept a return. At the same time, you should conduct cell phone protection and many more. Remember that some cards do not come with these features, meaning you should talk with a provider beforehand.

5.   Zero-Percent APR

Finally, it would be best to remember that some cash-back credit cards would feature an introductory zero-percent annual percentage rate on balance transfers and purchases for a specific period. As a result, you can make large purchases, consolidate debt from other cards, and avoid paying interest, which will help you get out of debt or handle the payments on time.


Remembering that most cash-back credit cards feature zero-percent introductory annual percentage rates would be best. Still, after the period ends, you will have a significant interest rate of over twenty percent. Some cash-back options will charge more depending on the rewards you get.

Everything depends on your credit score, meaning you should avoid applying for a reward card without excellent or outstanding scores. It should be at least 690 and higher so you can get the best rewards available on the market.

Still, you should consider each step beforehand because if you are in a tight financial situation, you should choose other options. Besides, it is vital to check out with the provider and determine whether you will get rewards for regularly purchased items. That way, you will get the most out of it.