Consumers are always on the lookout for the best credit card deals that will give them the most cash back they can earn given their regular spending habits, and now a new study shows exactly which might benefit the average consumer most.
Capital One's Cash Rewards Card with a $100 cash back sign-up bonus is perhaps the best such credit card offer available to the average consumer right now, as it will grant them roughly $460 in rewards over the first two years the accounts is open, according to new data from the independent research firm NextAdvisor. That figure is based on the total value of the rewards and sign-up bonus, but also the two annual fees consumers will pay.
Rounding out the top three were a pair of credit cards from American Express, the Blue Cash Everyday and Blue Cash Preferred cards, which grant the average borrower $388 and $354 cash back respectively within the first two years the accounts are open. The borrowers' spending habits, culled from a 2010 government study, were used to calculate about how much the average person puts on their cards in a given year, and that comes out to roughly $12,000.
So what should you think about?
When you're sifting through credit card applications online, it's important to keep in mind not only the perceived value of the offers you are looking at, but also how they might impact you personally. Simply put, not all offers, no matter how good they may be, will necessarily work out for you.
If you tend to do most of your credit card spending at a gas station, you should
look for a card that will specifically incentivize that kind of purchase with a larger cash back rate. The same is true for groceries, travel, and so forth.
Is there anything to be cautious of?
You will note that when you review a number of offers for various types of credit cards, that the
interest rates for these cards are typically higher than on traditional accounts, and as such, carrying a balance will likely be more costly and eat into your rewards earnings.
So before you apply for credit cards, it's important to compare and contrast it with a number of similar accounts.