Sam asked:
I want to apply for a credit card with cash back but I want to use it and pay it in the same time. No finance. Do they calculate the cash back based on the daily transactions or based on the closing balance at the end of each statement cycle?
Everyone I have seen pays on net purchases (what you buy minus what you return) of sometimes specified types of goods during the reward time period.
Be sure to read all of the fine print about when, how much, and for how long the cash back is paid. We have multiple credit cards (all paid in full every month) to maximize our cash back.
And once you select a card, watch for changes in the cash back program we have had cards where the rewards have been reduced or limited substantially – we don’t use those any more.
As a gauge 1% back is good, the best I have seen is 1.5% outside of promotions (temporary higher rates) or cards through specific retailers that issue store credit for as much as 5% for net purchases in their stores.