Yeske Buie in the Media: Cash Back Considerations

Credit card companies spend billions of dollars each year marketing their cards to consumers, often using flashy commercials to advertise cash back bonuses, 0% interest rates, and other attractive qualities. But with all the options out there, how do you decide which one earns your business? While there are a number of considerations to evaluate when making this decision, for many consumers, cash back bonuses have become one of the most highly valued features.

Lauren Stansell recently shared her thoughts on cash back cards with a writer from BankRate.com and was quoted in their Best Cash Back Cards of 2018 feature offering the following insight:

“Do your research! If you already have a debit card through your bank, check out what cash back cards they offer and what additional benefits you may get for being an existing customer. Then, research other options to be sure you’re picking the best option for you. Choose a card that will give you cash back on the things you regularly purchase.”

Lauren also shared the following insights with BankRate.com as best practices for using credit cards.

What are some tips for beginners using a cash back card?

• Use credit cards to make purchases that you can pay off at the end of each month; don’t carry an ongoing balance on a credit card. Consider alternative financing options for necessary large purchases like a car.
• Choose a cash back card that aligns with your spending needs and gives you cash back for the items you buy most frequently. Be sure to maintain your normal spending habits and stay in line with your budget; don’t start spending more money each month just to get additional cash back.
• Start using the card for everything that gives you cash back, then, pay off the balance each month. Set up automatic monthly payments of your credit card bill so you know you’ll never make a late payment. But, don’t ignore your spending! Pay attention to what you spend and ensure you’re sticking to your budget.
• Keep an eye out for special deals offered once you have your card. For example, my cash back rewards card often has special cash back deals for restaurants and services. I won’t go out of my way to unnecessarily spend on these items, but I often check the deals to see if any align with my normal spending. If I’m going to spend at a restaurant or on a service that is on the special list, I might as well get the extra cash back being offered.

What are some things to look for in choosing a cash back card?

• Find online comparisons of various cash back credit cards to easily compare the features or build your own spreadsheet if that’s your preferred style of researching and comparing.
• Be sure to keep an eye out for potential annual credit card fees and include these in your comparisons.

Why would someone want a cash back credit card over a travel rewards card or other type of credit card?

• If you don’t travel often, a travel rewards card likely won’t be as beneficial as a cash back card. It all depends on what will give you the most reward throughout your normal course of spending.

How do you like to use your cash back rewards?

• I have my cash back rewards deposited into my checking or savings account because Bank of America gives me an additional 10% customer bonus if I redeem my points to a Bank of America account.