Having a credit card can make things like online shopping and buying plane tickets convenient. They are also useful in emergencies and many credit card shoppers are enticed by rewards cards. There are rewards cards that offer everything from exotic vacations, to vehicle maintenance, but the most popular type of rewards card is the cash back credit card. When choosing a cash back rewards card, it is important to study the options and choose the one that would be most beneficial to your individual spending habits.

There are a few things that matter to all potential credit card customers. These are terms such as: interest rate, annual fees, and the percentage of cash back that is offered. Usually the cash back is a percentage based on purchases, but many cards have tiered rates depending on the type of purchase. For instance, some cards will offer 1% on all purchases and 3% on travel. Certain cards will offer a larger percentage on gas purchases and less on other purchases. The best way to decide which card is the best for you is to do the math, after all, math doesn’t lie.

Based on your spending habits and some basic math, you can easily decide which card will save you the most money. Just keep in mind that most cash back rewards will be eaten up by interest charged on your purchases. So, if saving money with your rewards card is your goal, then pay off your balance every month. Also, choose a card that doesn’t charge interest, until after the first 30 days of a purchase.

Once you have found a card with the lowest APR, and no annual fee, and you have a conservative spending plan. You can focus on which rewards card will suit you best. Decide what you spend the most on and get a card that offers the largest percentage on that purchase. Often times, business credit cards can be used to leverage the most cash back rewards, because large purchases on gas or supplies are often required for businesses. If the large purchases are paid off each month, then using the card can actually save 2 or 3 percent, or whatever the cash back rate is.

Regular consumers can also take advantage of rewards savings, by getting the largest cash back percentage and then paying most expenses with the rewards card. Just make sure to pay it off monthly to avoid interest charges. Cash back credit cards can be a great way to save a little on purchases and expenses, as long as smart planning and discipline are part of the spending plan.

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