This question can be tricky because there are a lot things that need to factored in before you make a decision.
First you should know a general rule:
Most cards that offer cash back have a maximum amount of money they can give back to you per year (around $300). The only card that I know of that doesn’t have a maximum is American Express’s blue card, but there are other restrictions on the card i.e. in order to receive the full percentage of cash back you need to spend a minimum of $6500 per year.
You should also know that cash back cards usually come with higher fees. For instance, if you plan on carrying a balance every month (which 65% of American families do) your APR is much higher than a regular card. Rates can range between 16.75-23.75 as oppose to 7.99-12.99. Also, cash back credit cards give you less value than reward cards. Cash back cards give you generally a percentage of what you spend usually between 1% to 5% as opposed to rewards you get dollar for dollar.
So at the end of the day which is better? That all depends on your preference do you like cash or goodies?? I, for one, like goodies!
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