When it comes to rewards programs, the cash back kind is one of the most favorite. Imagine it. In essence, the credit card company is giving you some of your money back for every purchase. Its like a built-in rebate on everything from gas and food, a night out on the town to a new car. But if you put a lot of thought into these deals, they may not all seem like the best around. Better yet, sit back, read on, and let us put all the thought into helping you find the best cash back credit card.

Lets start with the benefits. Most cash back programs give you 1 percent back on all your purchases. Some will give you a higher percentage ratesay, 5 percentif you buy from a particular company or type of item. For instance, a gas card credit company may give you 5 percent cash back on gasoline purchases made at their specific gas station, and 1 percent back everywhere else.

That sounds great, and it adds up to some change back in your pocket. On a 1 percent cash back card, you would get $10 back for every $1000 you spend. Thats a higher percentage cash back figure, so dont count your chickens before theyre hatched.

Whats more to watch out for, too, is the fact that many of these cash back programs cost money to participate in. Especially if theyre giving you a high rate, such as 1 percent, you could expect an annual fee to participate, such as $100. That means you could be paying out more for this fee than youre actually making on your cash back.

On top of this, cash back cards might lure you with that special offer, but all of the other terms of the card may, to put it simply, stink. So just because a card has a cash back offer doesnt make it the tops. Check to make sure any offer also has a reasonably low annual percentage rate, one thats fixed at a low rate in the best case scenario.

Besides these rates and the annual fee of belonging to a cash back program, also check to make sure that in the fine print there arent any other surprising terms and conditions. Cards could have stiff penalties for late fees or overcharging your account. And they also have fees if you want to transfer payments to take advantage of the cash back program. The best cash back credit card, in other words, is one thats well-rounded and offers more than just chump change at the end of the year.