This is a guest post written by Mr Credit Card

In my last post, I mentioned that there were different types of credit cards that allows you to earn rebates when you use your credit cards at the gas station. In this post, I am going to talk about cash back credit cards.

Unlike gas credit cards, cash rebate cards allow you to also earn cash rebates on purchases other than gasoline. You can earn cash rebates on other at the gas station. For example, you can earn rebates on your supermarket, drugstore and even utility expenses. But before simply going out and getting any cash back card, you will have to understand that there are also different type of cash rebate cards in the market and some may be more appropriate for you than others.

Firstly, recognize that the most generic cash reward cards lets you earn 1% rebates on all of your purchases except things like cash advances and balance transfers. You generally do not want to get these cards because there are better cards that pay you more than 1% on certain types of spending (hint : gasoline!).

The better credit cards pay more than 1% rebates on items like gasoline, supermarket and drugstores spending etc. They typically ranges from 2% to 5%. For example, the Chase Freedom Credit Card allows you to earn 3% rebates on up to 15 items including gasoline and supermarkets. Some credit cards impose tiers on their rebate formula. For example, the American Express Blue Cash lets you earn 5% rebates on gasoline, supermarket and drugstore purchases. But to earn 5%, you have to spend above $6,500 from your anniversary date before it kicks in. Before that, you earn a lesser rebate of 1%.

Having a cash rebate card is slightly better than a dedicated gas rebate card because :

1. You can use them at any station
2. You will also earn a better rebate on other things like supermarket spending.

Mr Credit Card runs a site about online credit card reviews. You can also find more cash back credit card reviews at his site.

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