How does cash back work?
How does cash back work? Every time you use a cash-back credit card to make a qualifying purchase in store or online, it earns a percentage of the amount paid. That means if you spend $500 on a card that earns 1.5% cash back, you'll earn $7.50 back in rewards.
Is there a downside to cash back?
The more that you use your cash-back rewards programs, the more money that you stand to earn. There are a few drawbacks to a cash-back rewards card, including a higher-than-usual APR, having to wait to access your cash-back funds, and a cap on how much you can earn each year.
Is 3 credit cards too many?
If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix. Lenders and creditors like to see a wide variety of credit types on your credit report.