The Hidden Drawbacks of Cash Back Credit Cards: What You Need to Know
Tuesday, 2 April 2024, 21:00
The Hidden Drawbacks of Cash Back Credit Cards Revealed
Cash back credit cards can help you save money, but they're not perfect. Make sure you know about their drawbacks before getting one.
1. Limits on Bonus Categories
- Many cash back cards have bonus categories where they earn more than their regular rate.
- Bonus rates usually range from 2% to 6%, depending on the card.
- There's often a limit on bonus categories, which could impact your rewards.
2. Lack of Extra Benefits Compared to Travel Credit Cards
- Cash back cards are cheaper but may not offer as many additional benefits as travel credit cards.
- Some popular features like airport lounge access and free night certificates are commonly found on travel cards.
3. Redemption Minimums
- Some cash back cards have redemption minimums, requiring you to accumulate a certain amount before you can redeem your rewards.
- This restriction can delay your ability to use your cash back, which may not be ideal for everyone.
Remember, no credit card is perfect, and it's essential to consider these drawbacks before choosing a cash back card.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.