Three Steps to Finding the Best Cash Back Credit Cards

Do you know where and how to find the best cash back credit cards? I do. Millions don't. Why? Because they don't know three steps that would lead them to the best credit cards on the market. Think I'm gonna keep these secrets to myself? Think again. Everyone deserves the best credit card possible. Here are three steps to finding the holy grail of cash back credit card deals...

1. You Want To Charge Me What?

Five percent cash back?! Wow! What a deal, right? Maybe not. Especially not if you're paying 20 percent interest and an annual fee of $49. The first step to finding the best cards is weighing the costs associated with the card against the benefits. While 5 percent cash back might be great, it's not as attractive if high interest rates and ugly annual fees are involved.

Don't settle for less. Not all cash back credit cards carry high interest rates and many don't charge any annual fees. Look for these cards when deciding which ones you're going to apply for and which ones you're going to pass by. Otherwise, you're going to be throwing money out the window and the cash back is going to go right back to the credit card company who gave it to you.

2. Cash Back is Cash Back

Some cash back credit cards will advertise high cash-back percentages, but then make you redeem your "cash" at specific merchants or websites. Always look for the real cash back rate. It's the only way you can make apples to apples comparisons when deciding which credit card you're going to carry in your wallet.

3. Spending Habits?

Many cash back credit cards offer variable rebate amounts. For example, Card A may give you five percent cash back on gas purchases while giving you only one to two percent back for purchases made at grocery stores. Card B, on the other hand, may only give one to two percent back for purchases made at gas stations but give three to five percent back for grocery store purchases. If you rarely pay for your groceries with a credit card but purchase gas frequently, Card A is going to be your best bet - and vice versa.

Before applying for any credit card, make sure the most generous rebates are in line with our shopping habits. Only then can you be sure you're applying for the best cash back credit cards for you.