The appeal of free money is tempting, right? However, according to statistics, up to 31 percent of people who have a cashback credit card aren’t redeeming their rewards.

This is shocking, right?

Have you been considering a cashback credit card, but unsure of which one to choose? There are quite a few options, after all.

The good news is, you don’t have to go into this decision blind. When you consider the four factors here, you can find the right cashback card for your needs. Just remember, to reap the benefits, you have to claim the rewards.

1. The Rewards Rates

Finding a card that offers a reward rate of two percent is pretty generous. For bonus or tiered category credit cards, you may discover rewards rates that are five percent or more.

Consider how the top rate for all the cards you are thinking about applies to what you spend. Are you spending enough in those categories to earn sufficient rewards? Would you ever max out in those categories? If so, then the card matches your spending habits.

After you hit the max for one category, you can continue to maximize your rewards by using several cashback credit cards in a strategic way.

For example, after you have reached the quarterly earnings cap for your card’s bonus category, start using a card with an uncapped flat rate. You will still get more than one percent back on your purchases in that category, and others.

2. The Annual Fees

When it comes to finding the best annual fees, it may be beneficial to use this credit card comparison tool.

While most cash-back cards won’t charge this, you still need to make sure before moving forward. If you find an appealing card, that has an annual fee, see if you could offset it with the perks or rewards offered.

If not, then it is best to continue looking for a no-fee card and finding out if you qualify.

3. The Redemption Flexibility and Options

Some cashback credit cards require you to earn a certain amount of cash back, such as $25 or $50 before you can redeem your rewards.

Other cards allow you to redeem your rewards at any time and for any amount.

Figure out how important it is for you to be able to access your rewards money on your terms and quickly. Keep in mind, each card you find will have a unique set of redemption policies.

Depending on the card, you can redeem your cash as a gift card, statement credit or receive a check. Choose a card that offers a method that is appealing to you.

4. A Sign-Up Bonus

While sign-up bonuses along with cash rewards sound like a can’t lose situation, don’t let this alone steer your decision. After all, the sign-up bonus is going to be a one-time deal.

It will be better to focus on the spending categories on the card. If they work with your purchases, you will get more money back over time.

Finding a Cashback Credit Card that Works for You

Finding the right cash rewards credit card can be tricky, but when you know what to look for, the decision will be much easier.

Learn more about financial management and credit card selection by contacting our team at Working Home Guide.