Cash Back Credit Cards: A Cash Back Credit Card is like a super savings account.

If you obtain a credit card that rewards 1% cash back on all purchases, that comes to $1.00 for every $100 you charge on the credit card. Some issuers offer up to 5% cash back; however, most of these restrict the types of purchases which qualify. Issuers offering 1% cash back generally do not restrict qualifying purchases.

The cash back can add up quickly, especially if you obtain a credit card that does not limit the types of purchases which qualify for the cash back reward, and if you use the card for all your expenses. You could charge your mortgage and auto payments, groceries, utility bills, etc, and then payoff the balance in full so as to avoid interest fees.

When applying for a cash back credit card, maximize your potential rewards by getting a card with no restrictions nor penalties for paying off the balance in full each month.

If your household expenses; for example, come to $5,000 per month, you could earn $50 every month with a cash back credit card. That comes to $600.00 per year. When compared to a standard bank savings account, that's a great interest rate! And, unlike a bank savings account, you don't have to set aside money in order to earn the cash reward.

You will need to avoid temptation; however, of using the cash back reward to splurge on purchases you really don't need. Also, don't forget that the cash back may be taxable income, just like normal savings interest.

Here are cash back reward cards offered by major issuers:
(Note: Rewards, Fees, Interest Rates, etc, may have changed since the date of this article)

The Advanta Platinum Rewards is a business credit card that offers your choice of 5% cashback or travel rewards.

The Chase Free Cash Rewards Platinum Visa Card offers 1 point for every $1 in card purchases and interest. When you accrue 2500 points, you can receive a $25 check or a $25 gift certificate

The Discover Platinum Card offers 5% Cashback Bonus on Get More Program purchases throughout the year and up to 1% Cashback Bonus on all your other purchases.