| Best Cash Back Credit Cards | 
Chase Freedom(SM)
- 3% bonus cash back offers in popular, rotating categories like gas, home improvement and department stores
- Full 1% Cash Back on everything else - no spending tiers or caps on how much you can earn
- Up to an additional 20% cash back at select merchants when you shop online through Chase
- 0% Intro APR and No Annual Fee
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|  | Which is Better: A Rewards Card or a Cash Back Credit Card?
There are so many credit cards on the market. While the credit crisis of 2008 and 2009 greatly reduced the amount of cards, particularly in the sub prime market, there are still more credit cards offered than just about anything else.
With all of the offers on the market, do you want a card with rewards points or a cash back credit card?
The truth is that there is not a clear cut answer. That's the bad news. The more welcome news is that the type of reward may not be important in many cases. Let's take a look at two examples of options we may see while shopping.
The First Bank of Prosperity Gold Rewards card looks like a card worth studying further. It has an interest rate of 12.99% with an introductory rate of 5% for 6 months. The fees are comparable to other cards that we've found and after looking at some of the credit card review websites, this card has a lot of positive reviews. On all purchases, rewards points are offered at the rate of 1 point for every dollar spent.
When looking at the website, it appears that everything from gift cards to merchandise to travel services are offered and after doing a little research, the buying power of those rewards points is about 1% meaning that if you were to buy a certain item in a store for $100, it would take 10,000 rewards point to buy it from the online catalog.
Our second offer is from Wealth National Bank. They are offering the Wealth National Platinum Cash Back card. It has an interest rate of 13.99% but no introductory rate. The fees are comparable to our first card and again, a lot of great reviews. This cash back credit card offers a 3% cash reward that is paid by check every 12 months.
There are no gift card offers, travel certificates, or trendy handbags offered on their website. Instead, only cash back is offered. We already know the buying power of cash so we don't have to do any calculations to figure that out.
Which is more attractive to your wallet? If you are looking at rewards cards, you have to pay your balance in full each month or interest is going to wipe out your rewards regardless of which card you choose so let's not worry about the interest rate. Fees and reputation are important but let's look at the rewards information.
Those rewards points with the nice looking catalog may be enticing but if we converted the rewards to cash, we would only be getting a 1% rebate compared to the 3% rebate offered by the cash back credit card. In this case, the cash back card is the better deal.
It won't always be that way, though. You have to do the same calculations as we did above to compare the rewards card to the cash back card but please, do not choose your card based on the catalog!
Compare Cash Back Credit Cards
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