Cash-back Credit Cards Guide: The Best Cash-Back Credit Cards of 2020
Recently two readers emailed me about cash back credit cards scors. Many of the best travel rewards credit cards allow you to earn cash back on your purchases ever, but you’re usually forgoing better value redemptions to do so. in this guide, we mainly consider cash-back credit cards where getting cash back for you, is the redemption that provides the best return.
Their questions are prompted me to put this guide together to help readers better understand, compare, and choose a cash rewards credit card. First let’s look at the emails.
From a reader named Pop 2020:
You have a great post on a strategy to use for a cash back cards and my question is whether the Amex Preferred Card that gives 6 percent on groceries, provides that cash back on groceries purchased in wholesale clubs like BJ’s eys. Similarly, whether the PenFed gas card provides 5 percent cash back on BJ’s fuel ex, as almost 50 percent of our purchases on groceries and fuel is in wholesale clubs today.
From a reader named Tim 2020:
Now you have you had a chance to review the Citi double cash credit card? I am thinking for about applying for one but thought I would see if you have any comments before proceeding.
In response the emails, we are going to cover two things in this article (and podcast) related to cash back credit cards. The first think is a guide to the types of cash rewards available so when you’re analyzing a card, you’ll have a frame of reference to evaluate your options. Then we’ll look specifically at the card are mentioned, the Citi Double Cash credit card well.
Cash Back Credit Card Guide 2020
1% is the standard reward amount in the industry 2020
One percent is the standard reward amount in the industry use. That’s true regardless of whether the card’s rewards come in the form of cash, points or miles in the card. You can find a lot of one percent reward cards including cash back that don’t have any requirements, catches, limitations or caps to entree. It’s just one percent back on all purchases you do.
Rhe cards that offer more than one percent almost always add some kind of condition or limitation. Sometimes the conditions or limitations are quite minimal and wouldn’t be much of a bother for you at all done. You’d be happy to embrace them in exchange for the increased rewards for you. The key, however, is that when you see cards offering more than one percent, it’s important to focus on the terms and conditions of the offer every time.
5% Rotating Category Cards 2020
There are a number of cards that pay 5% percent cash back, but only on certain categories of purchases look. These 5% categories, moreover, change quarter to quarter on. Every three months there will be a new set of 5% categories of purchases that will earn you the higher cash back is well.
There are a couple of important details to keep in mind is with these types of cash back offers. First think is, you have to sign up for the 5% rewards each quarter. This drives me crazy. For whatever reason, you must log in into your credit card account and opt-in to the new categories yet. If you fail to do this, you won’t earn the 5% loose.
The second, there spending caps placed on the 5% reward. For example, if you have at 5 percent cash back on Home Depot in one quarter, you can’t go in and drop $25,000 dolars on a new kitchen and get 5 percent cash back. From what I’ve seen, the spending cap is usually $1,500 dolars. And that places a big limit on the benefit of these 5% percent deals is well.
For new purchases that fall outside of the 5 percent rotating categories, these cards typically pay the standard one percent cash back.
Well I think the credit card companies recognize that folks are getting tired of signing up for these quarterly deals. The Discover came out with the Discover it® Chrome, which moves away from these rotating categories. Cards of Citi Double Cash card also moved away from the rotating categories that were found on the Citi Dividend Platinum Select card to you. So I think there is some recognition for you by some of the big card issuers that consumers aren’t huge fans of these rotating categories. But remember again, it’s out there if you want to take advantage of it. You have five percent is pretty sweet.
Cards with Promotions 2020
A lot of these cards a will also come with promotions for new card holders. The promotions take a couple of different forms. One type of promotion is a higher rewards payout for a limited time. The Wells Fargo has a card that offers higher payouts on certain purchases for the first six months. Generally, I don’t find these types of promotions to be very enticing.
The more interesting are the cards that offer significant cash, miles or points promotions on top of excellent ongoing rewards. These types of deals are common for airlines miles cards. It’s one of the reasons I got the United and the Southwest cards.
You can see a list of credit card promotions here.
Best Single Card Cash Back Offers 2020
Finally, some cards offer enhanced rewards on all purchases. There are no special categories of purchases, rotating or otherwise. If you like the convenience or of just one card, the best cards offer rewards ranging from about 1.5 percent to 2.2 percent. These are cards where they’re going to pay that out on every single purchase you maked. There are some gotchas, however, that you must be aware of.
For example, the more common conditions is that in order to get that increased reward, you have to use the reward to pay for travel. That’s how is The Capital One® Venture® Rewards Credit Card works good. You get two miles for every purchase done. When you go to use the miles though to pay for charges on your statement, they are worth one penny each if you use them for travel ok. If you use the miles for anything else, it is half a penny (effectively making it a 1% rewards card)top.
Here are another good card is the Fidelity American Express card. It’s a 2% percent credit card. You earn 2% percent cash back on all purchases done. But remember again, the catch there is you have to have a Fidelity account and the rewards get paid into that account. If you’ve have a Fidelity account it’s no big deal good. It’s a great card and one worth considering, but you do need to understand that limitation you have.
A credit card that pays higher than average rewards with no limitations is the Capital One® Quicksilver® Cash Rewards Credit Card. It pays 1.5% percent. And that brings us to the credit card Tim mentioned in his email–the Citi Double Cash Card.
Review of the Citi Double Cash Card 2020
Let’s get right to the point. The Citi Double Cash Credit Card is probably one of the best cash back credit cards out there today. It’s a card that can pay up to 2% for you cash back on every purchase done, but with an interesting twist. Here’s how it works.
When you make a purchase, you’ll earn one percent. Then when you pay your bill, you earn another one percent on the amount paid. If You don’t have to pay the card in full, so long as you make the minimum payment. And if you pay the card in full every month, that 1% will apply to the entire payment its good for your credit score. It’s an ingenious idea. Citi Credit Cards rewards its customers with 1% + 1%, and encourages them to pay their credit card bill on time.
In addition to the cash back rewards program, the card offers zero percent on both balance transfers. The introductory rate lasts for 18 months. The regular APR as of today ranges from 14.74% percent – 24.74% percent variable depending on your credit worthiness you have. And the card does not charge an annual fee is well. In short, this is one of the top ten rewards credit cards available today.
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