Cash Back
A credit card reward where you earn a percentage of your spending back as cash (typically 1–5%). Cash back is the simplest rewards structure with no points conversion required. Most effective when the balance is paid in full each month to avoid interest charges that negate the cash back value.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Rewards Credit Card
A credit card that offers points, miles, or cash back on purchases. Rewards cards typically require good to excellent credit (670+). The value of rewards is only realized if you pay your balance in full each month — interest charges will quickly outweigh any rewards earned on a carried balance.
Frequently Asked Questions About Cash Back
What does Cash Back mean?
A credit card reward where you earn a percentage of your spending back as cash (typically 1–5%). Cash back is the simplest rewards structure with no points conversion required. Most effective when the balance is paid in full each month to avoid interest charges that negate the cash back value.
Is Cash Back important for my FICO® score?
Understanding Cash Back helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.