Cash Back Credit Cards Having a credit card is great as you can use it to purchase items when you don’t have cash with you. You also get the chance to receive rewards in the form of free miles and other bonuses, as well as cash back. How Does the Cash back Credit Card Work? With the concept of cash back, when you purchase a particular item, you, as a consumer and a credit card user, get a certain sum of money back, reflected in your online statement. Hence, every time you shop, buying items with your credit card, you have the opportunity to save money, which can amount to hundreds of dollars in the long run. The percentage of rebate will automatically appear when you get your monthly statement. The amount of cash back depends on the credit card provider, varying from 1 to 5 percent on purchases at drug stores, supermarkets, and gas stations. Pay your card in full The cash back credit card is naturally suitable for those who can pay off their balance in full and on time. If you are not sure you will be able to keep up with the monthly payments, you might go for a low interest credit card. Other benefits Another reason to use a cash back credit card is the possibility to make your payments online. You can access your statements over the Internet, which makes it convenient to use. The application process is simple and easy, via the website of the credit card provider. You qualify for a cash back card if you have good credit rating, showing to lenders that you are a regular payer. You can be approved in just a couple of minutes and have the card delivered to your home address in about a week. Cards on Offer The Chase Freedom Visa comes with a variable APR (12.99 percent to 22.99 percent), no intro purchase APR, and no annual fee. Card holders get 5 percent cash back on the purchase of gas, home improvement accessories, and items at department stores. Customers who shop at selected merchants over the Internet get further 20 percent cash back. Holders of Citi Dividend Platinum Select MasterCard earn 5 percent cash back on car rentals, hotel bookings, and at restaurants. The cash back on cash advances and eligible purchases is 1 percent. The card comes with a variable interest rate (12.99 percent to 20.99 percent), no intro purchase APR, and no annual fee. The intro balance transfer APR is 0 percent for the first 15 months. Holders of Capital One No Hassle Cash Rewards get 2 percent cash back on groceries and gas, and 1 percent on other purchases. Customers can set up an automatic redemption and get their cash back at a time of their convenience. Cash rewards can be redeemed for gift cards, checks, and statement credit. The card comes with a variable APR of 14.9 percent, no annual fee, intro purchase APR of 0 percent until September 2011, and no foreign transaction fees. Although cash back credit cards can save you a good amount of money, it is important to pay your dues on time. Otherwise, you incur penalties that make your savings totally worthless. Since you’re a wise spender and diligent payer, having a cash back credit card is the way to go.