When you’re choosing a credit card, you have a ton of different options available to you. You could get a card that offers points to redeem for free merchandise or miles you can use to take trips. You can also choose a cash back card. 

Cash back cards give you money back on each purchase. If your card provides 2% back, for example, then for every $100 you spend, you get $2 back.  For most people, opting for this type of card — rather than one with another rewards structure — can be the best bet. Here are four reasons why. 

1. You don’t have to worry about getting enough points or miles to redeem

Typically, with a cash back card, you simply redeem your cash back as you earn it, or once you reach a low minimum threshold like $25.  There’s no hoops to jump through or waiting potentially months or years until you accrue enough points or miles to actually pay for a ticket or an item you want.

You also don’t have to worry about doing things like buying extra miles to be able to redeem your rewards, since you just simply get cash coming back to you.

2. It’s easy to understand how much your rewards are worth

When you have a card offering points or miles, it can be complicated to figure out exactly what your rewards are worth. If you get 4 miles per dollar spent, for example, how much is that actually worth to you?

There are entire websites and guides dedicated to helping you compare cards and estimate the value of rewards — but not everyone wants to. make figuring that out a task on their to-do list.

When you have a cash back card, you know exactly how much your reward is worth. If you get 2% back, your reward is valued at 2% of your spend — there’s no confusion about it. 

3. You don’t have to waste time optimizing your redemptions

Cash back rewards are also really simple and easy to redeem with no added effort on your part. You don’t have to figure out which airline provides the best value or what specific booking process to use or which loyalty program to transfer your miles to in order to make the most of them. You just click to get your cash returned to you. 

This saves you time and a whole lot of effort and energy. 

4. You can use your cash back funds to help secure your future

Finally, there’s another great reason to choose a cash back card. You can get more long-term value from getting money back than merchandise or miles offer.

If you redeem your cash back as a statement credit, that’s less money you have to send to your creditor and more money you can put into a savings account or invest with. Some cards will even allow you to redeem directly into an investment, brokerage, or savings account instead of getting money back as a statement credit. This makes it possible to turn your cash back into a whole lot more money over time as you invest it to build a more secure future. 

For all these reasons, you should strongly consider making a cash back card your everyday card. Research to find the best card for your needs, apply today, and start enjoying all the perks that cash back cards offer. 

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