Cash back credit cards have been known as the “king” of reward cards simply for the reason that cash is “king”.  The logic behind this is that receiving actual cash back allows the cardholder to spend the reward money in any fashion at any location and achieve the best deal on a particular purchase. Many cash back cards will automatically apply any cash back reward accumulated to the current statement as a credit.

Since the real key to cards of this type is the cash back, and the issuers can only realistically give so much back and still have a profitable product, many banks have discovered new ways to entice new accounts. Some offer a bonus statement credit after charging a certain amount on the new card. Others will Have a higher rate a cash reward accumulation for certain categories of purchase that may or may not vary from month to month.  While still other issuers blend in various types of balance transfer deals and low or no interest during an introductory period. Many will offer higher reward rates when shopping at specific places.

All-in-all, if you do not carry a balance and are looking to get a little boost from your spending, a cash back card is a good choice for general purchases and everyday spending but may not be a replacement for a specialized card that yields even higher rewards.