Typically in the past, cash back credit cards were giving cardholders meager rebates of 1% on all or most of your purchases. However, if you check some of the reward programs these days you will see some offers giving back 3-5% rebates on many purchases (i.e-gas, groceries, and utilities).

Because these credit cards usually charge higher interest rates, rewards card tend to be the most suitable for consumers who pay off their entire balance every month. Cardholders who like to carry revolving debt would be wise to choose a card with a low interest rate. The majority of all reward card programs are usually not appealing for these type of cardholders.(Possible exception: Discover Motiva Card- see below)

Relatively, many cash back reward programs are usually only appealing to big spenders because they cap the rebate amount you can receive in any month and/or in a year, and a few pay back a relatively small percentage until a certain spending level is reached.

In general, try to stay clear of reward cards who try to tack on annual fees on your statements. Also, be weary of reward cards that expire if they are not used within a specific time frame, or make it difficult to redeem points on the card. Unless the reward programs have especially attracting features (like a high rebate of 5%), I would bury these programs in the sand…

Now for the good news!! I have found and signed up to a few cash back reward cards which offer attractive features and no annual fees(unless offers have recently changed as of today….) Take at look at the cash back rewards cards below, and tell what you think. Also, if you have chance you should check cashback offers at MyMoneyBlog. I have found great offers and information on his site.

Blue Cash from American Express pays 5% cash back for grocery store, drugstore, and gasoline purchases after you spend $6,500 within a year, and 1% of any given purchase personally, I have been using my Blue Card for a few years now, and their program is the most reliable.

American Express One Card- This program only gives you 1% cash back of your purchases, but it places your cash rewards directly to a savings account, which pays an annual rate of 2.75%(rate as of July 30). Also, an additional $50 is place in your savings account when you make your first purchase. The OneCard hits you with a $35 annual fee, but that is waived in the first year (just make sure they do).

Discover Motiva Card-Now here’s an interesting concept, the Motiva Card gives back the cardholders seventh monthly interest payment as rebate each time the cardholders makes six consecutive monthly payments where a minimum payment is due. So I wouldn’t sign up for this card if you like paying off your balances every month. This card is more suitable for cardholders who do not pay off their card in full every month, and carry a balance. The Motiva Card currently charges a 4% APR(annual percentage rate) for the first 6 months and 12 months on balance transfers. After the introductory period, the APR goes up from 11% to 19%.

Chase Freedom Visa Signature Card- Last, but not least is the Chase Freedom Visa Signature card that gives 1% cash back on most purchases and 3% on the purchasing categories the cardholder spends the most money in any given month. The main categories include gas, groceries, utilities, department and drugstores. For more information visit the Chase credit card site.