You’ve heard of cash back credit cards before and I’m sure you’ve heard of friends and families using them.  But you probably often probably wonder is "how they help you and why you should use one?"  While credit cards do have a lot of perks, cash back cards in general have a lot and I’ll point out a lot of them for you so that it hopefully helps you decide if you want to apply for a card or not.

Free loan for 20+ days- Thing I like the most about credit cards is that you’re able to have a interest free loan for 25 to 35 days.   As long as you pay that credit card off in full, you’re not going ot have to pay those pesky interest fees.

Get cash back – The cool thing about a cash back credit card is that you’re able to get a cash rebate on basically anything you spend on when you use your credit card.  Unlike regular credit cards where you won’t get anything, a cash back card makes it like having a sale on everything you buy.  Every card is different but you’ll get cash back nonetheless.

Better than cash – Instead of carrying that pile of cash around in your wallet or purse, you can carry around your card instead.  That way, if your card gets stolen, you won’t be reliable for all of the spending.  Unlike cash, once that cash is gone, you’re never going to see it again.

Easy to track spending- Do you ever spend your cash and you don’t know where its going month after month?  Well instead of guessing, your credit card statement will be able to show you exactly how much you’ve been spending and where at.  This makes it a lot easier for yourself.  Just make sure you watch your spending because it can get out of control if you don’t watch what you’re spending on your card.

Cash back cards are obviously for those looking to get cash back on their purchases.  They are designed for those looking for the max benefits on their spending.   If you feel you’re not disciplined enough to use one, I would advise you don’t use one at all and instead, stick with cash but if you know how to use a card and maximize your spending, then by all means, go for it and apply for one!

A cash back card may sound good for your spending if you’re looking to save 5%, etc but some people are iffy on the issue because as you know how the old saying goes, “if it sounds too good to be true, it probably is” but I can’t stress enough that this isn’t the case when it comes to cash back credit cards.

Let’s take a look at the pros and cons that come associated with cash back cards and hopefully by the time you read all of them, you’ll get a better understanding on how the cards work and you’ll be able to see if it’s something built for you.

THE PROS

• Get cash back on everything – If you’re a disciplined spender, you can really take advantage of a cash back card.  Some cards will allow you to save as much as 5% on every purchase you make.
• No fees – Unlike some credit cards, most cash back cards on the market have no annual fees.  This means if you pay your card off in full every month, you won’t have to worry about any fees at all.
• Safer than cash – This goes for any credit card but with a cash back card, you can feel a little bit more secure when you’re doing your every day spending.  Instead of carrying around cash, you won’t have to worry about losing it because if you do, you’ll only be liable up to $50.
• Get bonuses- Some cards will give you bonuses just for signing up and sometimes the cards will also offer bonuses throughout the life of the card such as ten times the points, etc.

THE CONS

• Interest rates can kill you – If you don’t know how to use a card properly and you don’t pay your bill off in full each month, you may see an increase in interest fees.  You won’t want that to happen.
• Not worth the rewards – This only applies if you sign up for a card that doesn’t have a good amount of rewards.  You may find that you sign up for it and it has a ton of fees along with a lousy cash back schedule.
• Restrictions – If you’re looking for a travel based rewards card, you’ll want to look out for restrictions and expiration dates.  Expiration dates are a big one.  Never apply for a card that loads you with restrictions.  It’s just going to be a hassle down the road.

As you can see by now, there are little to no cons to getting a cash back card.  As long as you do your homework, you’ll be fine finding the perfect card.  Just review the hidden fees and make sure you know what kind of rewards you’re getting and you’ll be just fine.