If you’re in the market for a new credit card, you might be wondering whether to get one of those high-interest cards or one of the low-interest ones. The answer depends on your spending habits and goals. But wait—there’s more! If your goal is to save money, cash-back cards can also help you do that. This article compares two different types of cash-back cards so that you can decide which one works best for your lifestyle and budget. Here, you can understand the differences between 3% cash back cards and 2% cash back cards.
The Offer
3 percent cash back credit card:
- Using 3 percent cash back credit card. 3% cash back on all purchases. No annual fees and no foreign transaction fees.
2% cash back card:
- 2% cash back on all purchases, but the rewards are capped at $1,500 in combined spending per quarter and then earns 1%. You’ll also need to pay an annual fee of $95 for this card.
The Rewards
You earn the same rewards on your credit card as you would with a 2% cash-back card unless your card offers additional features like travel benefits or concierge service. So if that’s important to you, read the fine print before signing up for any new cards.
If your goal is to earn more cash back at specific stores or restaurants, this probably isn’t for you—but don’t worry! We’ve got you covered. Check out our roundup of the best store credit cards and restaurant credit cards available now if that’s what you’re looking for!
The Benefits
If you’re not sure which is the best card for you, here are a few things to consider:
- If your purchase history is generally low-to-medium-ticket items with 2% cash-back cards, switch to a 3% cash-back card.
- If your purchase history is usually high-ticket items with 3% cash-back cards, then it might make sense to stick with the old standby.
The Costs
If you’re looking for cash back, the first thing to consider is where you spend your money. The 3% card costs $95 per year and offers a decent bonus for new members. So if you spend less than that amount on the card each year, or don’t want to pay an annual fee, then it’s best to go with the no-annual-fee option of 2%.
Read: 5 Ways of Making Timely Credit Card Payments
The Fine Print
The fine print is important to consider. The following questions can help you determine if a 3% cash back card or a 2% cash back card is right for you:
- What rewards and benefits do I want?
- Are there any costs or fees I’m willing to pay?
The bottom line is that many cards offer 2% cash back, but they are all equal to the Cash card. With no annual fee and a simple rewards program, this card is the best option for people who want to earn money on everything they buy. You can check out the most trusted online banking platforms to figure out which option is best for you.
Hopefully, you have understood the difference between the two cashback cards and how each one can be useful. So, go for it and apply for one today.
