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.


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