Cash back credit card is an option of getting back a flat percentage of money while using a credit card for purchasing something. If a cardholder uses a credit card for everyday purchases as an alternative to using a debit card or cash, then the credit card company pay back this cash back amount to the cardholder on their total expenditures. The cardholder gets this cash back at the end of the card statement or the end of the year in the form of a check. Banks calculate the flat percentage rate at the end of the month against all the spending made by the cardholder, and when the amount reaches $100, banks inform cardholders.

In the United States, many credit card companies execute cash back system to encourage the cardholder to use the card by offering something extra as a reward. Cardholders must reach a certain point of the level to retrieve for cash back or other reward benefits. Cardholders with higher credit score can apply for cash back credit card benefit because it requires good or excellent credit reports. Cash back credit card is a reward product offered by credit card companies, and it is very beneficial for the cardholders who pay their credit card bill monthly. While a cardholder pays his monthly bills on time, stays away from interest charges as well as from late fee and will eligible for achieving good cash backs. It also improves his credit records as well as credit score, and a good credit record is always helpful for cardholders. A cardholder can maximize the cash back by using credit cards for every purchase. Cash back rate on some credit card is 1%, but some cards give a higher percentage of some definite purchases like gas and groceries.

Different credit card companies have the different type of cash back policies and therefore the cash back methods vary company to company. Cash back benefits give a cardholder the opportunity to choose whether to take the cash or reward points for purchases, gift cards or travel. Cash back credit cards do not have any particular cash back rate. They give a flat percentage or a higher rate for some specific purchases. Cash back credit cards do not have annual fees but often come with a higher interest rate. If you have a cash back credit card, it is better to maintain a budget, and you have to plan that you will only use the card for those expenses which provide cash back. Every month you have to pay the full credit balance on time. If the full credit balance is not paid monthly, then additional interest will be added to the due amount.

Usually, most cash back cards give the cash on your monthly statement. Some cards also authorize you to deposit the cash back into a bank account. Some card issuers give incentives to deposit the cash back amount into a checking or savings account of that bank. Some card offers cash back in the form of shopping portals. Some cards offer cash back bonus as off on your purchases.

Cash back credit cards offer cash back for purchases in different categories. Some credit cards pay back a cash on everything that a cardholder purchases and they get the cash back at the end of the year while some cards pay back for purchases on a quarterly basis. The cards with quarterly category have the advantage to get a higher cash back.

The cards with rotating category are also very beneficial because they provide a high percentage of cash back for each quarter like groceries, restaurants, wholesale clubs, gas stations and more. These cards also approve the cardholder to earn points when he/she dines at particular restaurants.

Cash back also differs depending on the purchase of some credit cards. Many cash back credit cards give an opening cash reward to the new cardholders. If a new cardholder spends the certain required amount to purchase by that card within the time period, then the cardholder gets some cash back as a reward.

• Discover it Cash back match is one of the top options for cash back credit card, it offers 5% cash back in alternate categories every quarter like restaurants, wholesale club, gas stations and more and also 1% cash back on all other purchases. It has an advantage that a cardholder can earn up to the maximum each time of using the card
• Another top recommendation is Bank Of America Cash Rewards Credit Cards with no annual fees. It offers $150 cash reward online after the cardholder spends at least $500 in the first 90 days of opening the account. On every purchase, it gives 1% cash back, 2% at wholesale clubs and grocery stores and also 3% on gas up to the first $2,500 combining the three every quarter.
• Wells Fargo Cash Wise Visa cards are good options for high spenders provides higher returns in categories like dining and travel. The card has no annual fees and offers $200 cash back after spending $1,000 in the first quarter. It also gives unlimited 1.5% cash back on every purchase.

Banks or companies by offering cash backs in a credit card motivate a customer to use credit cards frequently. Cash back credit cards are advantageous if you pick the right one.