Top 5 Cash Back Credit Cards in 2012
We like to survey the top credit card offers during the first or second quarter of every year to see how the features, perks, terms and conditions have changed from the year prior. Beginning this month we will look into a variety of credit card categories and pick out the top offers as well as discuss year-over-year APR changes, new legality issues, and/or any other noteworthy news affecting the specific category of credit card.
Today’s publication covers the cash back credit card category and features the top offers on the market in 2012.
Since this time in 2011, no new laws have been set in place which directly affect these cards.
As of Q2 of last year a variety of promotional credit cards have cycled though our database but few have locked down the number 1 spot as long as the Chase Freedom Card. This card currently comes with a $200 bonus after spending just $500 with it and is our number 1 featured pick for this credit card category (up 1 spot since last year). Details below.
Chase Freedom® Visa – $200 Bonus Cash Back - Along with the cash bonus, card holders will be entitled to 5% cash back on a rotating set of categorical purchases. A few examples of purchases falling under the 5% cash back reward structure are home improvement, dining, travel, gas, etc. Purchases outside of the rewards categories will still garner 1% cash back regardless of what they are. You’ll need to have excellent credit to be eligible for the offer. Also keep in mind this card is noted as a limited time offer but has been extended on several occasions and is expected to remain available through (at least) the summer of 2012.
Why Apply for a Cash Back Card?
A cash back card can be extremely beneficial to a responsible consumer. If you are diligent about timing your purchases so that they align with the 3-5% cash back system and you pay off your bill in full each month, one can earn hundreds of dollars back each year from their card. Even if the more rewarding categorical purchases are seldom made, the 1% catch-all cash back system can still add up to significant savings throughout the course of a year.
The only way card issuers make money from these cards is when consumers spend more than they have. An APR of anywhere between 12-30% is generally associated with cash back offers, this can add up to significant revenue for the card issuer if un-payable debt is stacked up by the customer.
