(MoneyHippo.com) – Perhaps you’ve heard the advice to pay off credit card debt first when getting your finances in order because it’s a “bad” form of debt. While this type of high-interest obligation can certainly drain your bottom line, you can use credit cards to your benefit and even return some money to your pocket. Enter cash-back credit cards. These types of instruments are bank offerings that do just what they advertise — giving you cash back when you make certain purchases. Essentially, you’re paying a sale price on things you buy rather than paying full price. Here are three of the best to try.
- Chase Freedom: Chase bank offers this credit card, which provides from 1.5% to 5% cash back, depending on what you’re purchasing. For instance, buying groceries or gas will net you 1.5% back, and eating out at a restaurant could get you 3%. Chase doesn’t list any special parameters you need to meet to apply.
- Citi Custom Cash: Using this credit card from Citibank will earn you 5% cash back on certain qualifying purchases like groceries, gas, fitness clubs, live entertainment, and travel up to $500 per cycle. All other purchases will give you 1% back.
- Bank of America Unlimited Cash Rewards: This card, offered by BoA, gives you a cash reward once you hit a threshold of purchases, boasts no annual fee, and gives unlimited 1.5% cash back for all purchases. The best perk is that the rewards never expire.
When you apply for a new credit card, there will likely be a ding to your credit score. But if you use the card responsibly by paying the balance off every month on time, you can enjoy the money returned to your bank account and should see an overall boost to your score over time.
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