Cash back credit cards can help consumers practice responsible spending while earning a little extra for their efforts when used properly. It wasn’t long ago that the best cash back credit cards were offering rewards as high as 5% for all purchases, but that is unfortunately no longer the case.

Today’s cash back credit cards are all similar in nature, generally offering 1% cash back on all purchases. However, if you look hard enough, you’ll find a number of credit cards with higher cash rebates than just 1%. This article lists the best cash back credit cards you can find today, and I update the article when there is new information to share. Along with a brief description of each of the best cards, I have included the cash back percentages and any tiers or restrictions, so there are no surprises if your cash back credit card isn’t earning as much as you first thought. Keep in mind that in order to make credit card with rewards programs worthwhile, you must avoid interest charges and late fees by paying your bill on time and in full every single month.

Editor’s choice

Blue Cash Everyday℠ from American Express. Of all the cash back cards available, this offers the possibility of earning maximum rewards. The Blue Cash Everyday℠ from American Express Card offers $100 cash back bonus after spending $1,000 in eligible purchases in the first three months as well as 3% cash back on supermarket purchases, 2% cash back on gas and department store purchases and 1% cash back on everything else. This card is a new version of the standard Blue Cash Card and it even offers a $25 referral bonus. Blue Cash Everyday℠ from American Express also includes a 0% introductory offer on purchases for 12 months and carries no annual fee.

Because there are no limits to the cash back rewards and no need to track rotating categories, the Blue Cash Everyday credit card from American Express is the top pick as your “workhouse” cash back card. If you make your regular household purchases on this card, you should be able to get substantial cash back over the course of the year.

Read the full article →

{ 135 comments }

For my own finances, I’ve been a fan of credit cards with cash back programs. Some financial experts advise avoiding best credit card deals completely, even those cards that offer rewards like cash back or offer on best gas credit cards and small business credit cards. I’ve never been a fan of this approach — again, for my own finances — because I see a credit cards as just another tool for personal finance. A hammer is inherently neither good nor evil; it’s a tool that someone can use to fix a roof or to send another person to the hospital.

For a large portion of consumers, credit cards cause trouble. That may not be a reason to avoid credit cards entirely, as consumers can learn how to use credit cards effectively. Those of us who do believe we use cash back credit cards offers responsibly, paying bills in full every month, never paying interest, and buying only what we can afford, are relatively comfortable with the use of this tool, but even the best of us are subject to issuers’ traps.

Cash back credit card programs include traps that help issuers recover the cost of paying out benefits to their customers. While some traps can be avoided by managing finances closely, other traps take advantage of the psychological aspects of using plastic rather than cash. These traps can be more difficult to avoid, because consumers cannot control their subconscious tendencies. Here are the cash back traps to avoid, if you can.

1. Credit card users spend more

The process of taking cash out of your wallet and handing that money to another person is a very deliberate activity, both physically and mentally. Parting with cash has psychological ramifications. In most people, particularly those who best understand the value of having money saved, the act of giving the cash away triggers the same reaction as a painful activity. Spending money and pain are linked in the brain.

When you use credit cards, you add a buffer between your cash and the process of parting with it. Spenders are less likely to hesitate and less likely to get that twinge of pain associated with handing over bills and coins. People familiar with computer science would call this a layer of abstraction. You’re controlling your money by using a representation of that money, not the cash itself, and that makes the process feel better. In addition, cards with a rewards program like cash back encourage higher spending, because that cash back is seen as a reward that can be maximized by spending more.

Avoid this by making a concerted effort to buy only what you could afford with cash at any time.

2. Late fees and interest negate any cash back benefits

Read the full article →

{ 16 comments }

American Express has always been great in varying their credit card offers to business owners. Whether a business owner’s priority is travel accommodations, spending power or saving money, there’s a credit or charge card designed to help out. The TrueEarnings Business Card from Costco and American Express fits into the saving money category, as it’s the only business card around offering 4% cash back on gasoline purchases.

All business owners of the TrueEarnings Business Card from Costco and American Express will receive a 0% introductory APR for six months. After the introductory period, the interest rate reverts to a standard APR of 15.24% variable. The cash advance APR is 21.24% variable and the default APR is a pricey 27.24% variable so avoid cash advances and pay bills on time to prevent default.

The TrueEarnings® Business Card’s primary feature is cash back, and the card offers competitive cash back rates, listed below. Cardholders will not be subject to cash back limits, and the cash earned never expires.

• 4% for annual gasoline purchases of up to $6,000 (1% thereafter).
• 2% for restaurants and travel.
• 1% everywhere else, including Costco.

Every business is entitled to additional perks and benefits as owners of an American Express business credit cards. Here are some of the noteworthy benefits.

• No annual fee with your paid Costco membership.
• Save up to 10% automatically on business expenses from FedEx, Hertz, and more with OPEN Savings.
• Assistance with emergency card replacement, check-cashing, and hotel check-in.

Few business credit cards offer the full package. These tend to be big money makers for card issuers, whether through a high interest rate or annual fee. The TrueEarnings Business Card from Costco and American Express seems to be one of the few business cards offering a solid rewards program with a low APR, and, possibly most importantly, no annual fee.

Consider enhancing your business by signing up for the TrueEarnings® Business Card from Costco and American Express today.

{ 4 comments }