4 Reasons to Choose a Cash-Back Credit Card

Credit card points may proffer great perks, but cash is king when it comes to convenience, flexibility, and universal appeal. The best cash-back credit cards offer all these features, while demanding very little in terms of fees and complicated redemption programs.

A cash-back credit card is the low-maintenance work horse, the jack of all trades, and the bread and butter of credit cards. It won’t compensate for overspending, but it can be a valuable tool for both the big spender and penny pincher alike.

Whether you’re applying for your first credit card or employing a multi-card strategy, here are 4 reasons to choose a cash-back credit card.

Reason #1 to choose a cash-back credit card: Get paid for what you’re already doing

Do you pay for all your purchases with a debit card? Are you racking up a mountain of credit card points you’ll never use? You could be missing out on easy money.

A cash-back credit card pays you a percentage back on every eligible purchase you make. A card with a 1.5% cash-back rate, for example, would give you $1.50 back for every $100 spent. The more you spend, the more you earn – and that money can really add up over time.

Keep in mind that the cash back rate is just one feature to consider in a potential cash-back card. The card’s annual fee, interest rates and any introductory rate should also play into your decision.  

Reason #2 to choose a cash-back credit card: Straightforward value

If you value simplicity, cash-back credit cards are the “set it and forget it” option. Unlike a points card, there’s no need to navigate complicated reward conversions to make sure you’re getting the most value.

There are, however, different levels of complexity among rewards cards. Some cards pay you a flat rate on every qualifying purchase, while others give you a higher percentage back when you spend in certain categories, which can be fixed or revolving. Deciding which of these rewards systems you should choose comes down to how you spend and how much brainpower you’re willing to devote to maximizing cash rewards.

Reason #3 to choose a cash-back credit card: Flexibility

One downside of a points credit card is that your travel preferences or life situation could change, rendering your unredeemed points less valuable or even useless. In this period of COVID-restricted travel, cash-back credit cards give you flexibility to use rewards however you like, and you’re not locked into any spending category. So, if your trip to Europe gets canceled, for example, you can apply the rewards to a home improvement project or a staycation.

Reason #4 to choose a cash-back credit card: Easy redemption

Cash rewards are often applied as a credit to your credit card account statement and, depending on the issuer, can sometimes be redeemed as a direct deposit or paper check. With some cards, you can choose to automatically redeem your cash at regular intervals or when you hit a certain dollar amount.

Not sure which cash-back credit card is right for you?

With the Zions Bank Agility Cash Visa^® Credit Card* cardholders earn 1.5% cash back on every card purchase. You can choose automatic redemption and receive your cash back every month, every quarter or when you hit certain amounts. Best of all, there’s no annual fee and no foreign transaction fees when you make purchases while traveling outside the U.S.

At whatever stage you find yourself in life, a Zions Bank credit card can help you maximize your purchasing power and manage your finances. Compare the Zions Bank Visa^® Credit Card* offerings on our website to find the card that best fits your lifestyle.

*Credit cards are subject to credit approval. Terms, conditions and restrictions apply. See banker for details.