Who Should Use

• Though the details vary, you can get a certain percentage back on the purchases that you make. Typically, the cash back is 1 percent, though some programs offer higher percentages on certain types of purchases, for shopping at specific stores or for spending a set amount of money. This is usually only a good deal for those who plan to pay off their credit card bill every month. If you carry a balance, you'll have to pay an interest rate that's higher than the amount of money that you would get back. You can usually find a better deal in a card with a lower interest rate and no cash-back rewards.
  
  

Choosing a Card

• When choosing any credit card, you have to pay attention to the interest rate and any annual fees that you have to pay. This can cancel out any potential reward that you might earn. With cash-back cards, you have to consider the way that you'll use your card. If you plan to use the credit card often, you may want to look for a reward card that has a higher percentage back for high spenders. You can also look for cards that offer greater rewards at the stores that you usually shop at.
  
  

Tips for Using

• Use your cash-back rewards card any time you have to make a purchase -- it's like earning a discount on everything you buy. Learn the specific details about your card usage and aim to maximize the amount that you earn. For example, if there is a maximum amount that you can earn, you shouldn't use that particular card once you've already earned the maximum reward -- switch to another reward card instead. Alternatively, if there is a minimum purchase amount to get an award or to reach the next level, you should make sure that you are reaching that level.
  
  

Warnings

• Some cards will automatically send your rewards, but others simply save your reward until you request it -- if you miss an expiration date, you could lose the reward. When you choose a card, you should watch out for the words "up to." Some cards advertise rates "up to 1 percent" or "up to 5 percent." The actual amount that you earn may be less than this. Be sure to check what you have to do to qualify for that rate.