Cashback is a popular incentive offered by many credit card companies. What it means is that for every dollar you spend, your card issuer will give you back some money, usually in a single payment made once a year.
The amount paid back is calculated as a percentage of your total spending. Percentages vary, but typically range from 0.5% to 2%. Some card issuers pay higher rates for purchases in some categories or made through certain retailers. The Discover Platinum Card, for example, offers up to 1% cashback normally, but 5% on purchases made from selected merchants in their Get More Program.
Cashback is obviously an attractive incentive, but if you are likely to leave a balance outstanding on your credit card, it should not be your first priority when deciding what card to pick. For one thing, many card issuers only offer cashback as long as you clear your balance every month. For another, if you are paying interest, the cost of this will probably far outweigh the benefit of cashback. In such instances, your first priority should be to pick a card with a low APR (annual percentage rate) and/or a long interest-free introductory period.
If you are confident...