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Advice for Selecting the Best Cash Back Visa Credit Card

Cash back rewards cards are some of the most sought-after credit products on the market today. Most people want rewards that they know they can use, and most people know exactly how they'd like to use a cash windfall. In fact, one of the draws of these credit cards is that regardless of the amount you're getting back (whether it's $50 or $300), the rewards will be useful. There are many types of cash back cards available, but for the best purchasing power a Visa credit card is likely your best bet (since Visa is accepted by more retailers and merchants than an other card in the world). So, what exactly makes for the ideal rewards credit card? IN a nutshell, it's a card that allows you to spend money in the ways you most enjoy, without compromising your spending habits and where you already shop. 

Currently, one can find a Visa credit card that offers some form of cash back from most of the major banks. Whether you prefer Capital One, Chase, Citibank, or any number of smaller banks and/or credit unions, chances are you'll find a Visa credit card that suits your needs. But before you sign up for that new card, considering these issues can help you determine which card is best for you.

1. What credit score is required?

Before beginning virtually any steps to get a new card, it is vital to know your credit score. And you should never rely on just one score from one of the credit bureaus, but rather pull all your reports and pay for each credit bureau's scores. This is important because the scores are derived from what's in each of your credit reports, and often the information varies across the credit bureaus. As a result, one of your scores may be 706, while another could be 654 or even 620; that kind of variablility is common, and can sink your chances of getting the card you want. Ultimately, you can contact the credit issuer and ask them how they will derive your credit score, and which credit bureau they use.

2. How do you earn points?

Lots of rewards plans include a long list of rules regarding how you'll accrue points, and any limitations on how you can earn or redeem them. It's important not to skim over these rules, but rather to entrench yourself for 30 minutes or so and become familiar with the requirements.

3. Is there an annual fee, and will it be worth it?

The fact is, most rewards cards have an annual fee. However, the follow-up to that is any annual fee will eat into your rewards. This why the above advice about reading and understanding the card's rewards requirements is important, so you can better estimate how much rewards you'll earn, and know (before applying) whether the card you want offers the best deal for you.

4. What is the interest rate, and how much will it really cost you to carry a balance?

If there's one cadinal rule of rewards credit cards, it's never carry a balance. That's because, each month you are paying interest is eating directly into your rewards. If, for whatever reason, you're not confident in your ability to avoid carrying a balance, it's worthwhile to start calculating how much it'll really cost you to carry a small, modest, and large balance for six months. Although, you can save yourself an hour of work, and just remember to never carry a balance.

Ultimately, a rewards card can provide a great return for buying products and services you'd normally buy. And cash back cards are particularly enticing because you can always use a cash rewards. However, it's important to remember that these cards are most beneficial when used strategically, and can actually cost you more money than you save when used incorrectly.