FAQ – CashBackBunny
How does cashback work on credit cards?
Cashback is a rewards program where you earn a percentage of your eligible purchases back—usually as a statement credit, bank deposit, or check. Some cards earn a flat rate on everything, while others offer higher rates in specific categories (like groceries, gas, or dining).
What’s the difference between cashback, points, and miles?
Cashback is typically the simplest: it’s real money back. Points and miles can sometimes be worth more, but their value depends on how you redeem them (travel partners, gift cards, statement credits, etc.). If you want easy value, cashback is usually the most straightforward.
Will applying for a credit card hurt my credit score?
An application usually triggers a hard inquiry, which can temporarily lower your score by a few points. For most people, the impact is small and fades over time. The bigger long-term impact comes from how you use the card (on-time payments and low utilization help).
Do rewards cards make sense if I carry a balance?
Often, no. Interest charges can quickly outweigh rewards. Rewards cards are usually best if you can pay your statement balance in full each month. If you’re working on paying down debt, a lower-APR or 0% intro APR card may be a better fit.
Are cashback rewards taxable?
In most cases, cashback earned from purchases is treated like a rebate and is not taxable. However, certain bonuses (like bank account promotions) can be taxable. If you’re unsure, it’s worth checking IRS guidance or asking a tax professional.
What does APR mean, and when does it matter?
APR is the interest rate you may pay if you carry a balance from month to month. If you pay in full, APR usually won’t matter. If you don’t, APR becomes one of the most important factors.
What is a “good” cashback rate?
As a general rule:
1.5%–2% is solid for a flat-rate card
3%–5% is strong for bonus categories (often with caps or rotating categories)
The “best” rate depends on where you actually spend money each month.
How do you choose the best card for someone?
We look at real-world value—not just marketing claims. That includes rewards rates, annual fees, welcome offers, redemption options, typical spending categories, and who the card is actually good for (beginner, student, traveler, etc.).
Do you earn a commission if I apply through your links?
Sometimes, yes. If you click a link on our site and are approved, we may earn a commission—at no extra cost to you. It helps support the site, and we aim to stay transparent about it. We don’t accept payment to write positive reviews.
Do you cover every credit card on the market?
No. We focus on cards that are widely available and that we believe offer strong value for specific needs. The market changes often, so we update our content regularly.
What should beginners look for in a first credit card?
Start simple: no annual fee, easy rewards, and features that help you avoid fees (like autopay). If you’re building credit, prioritize a card you can manage comfortably over chasing the biggest bonus.
How often do credit card offers change?
Pretty often. Welcome bonuses, APRs, and benefits can change at any time. We try to update pages regularly, but always confirm the terms on the issuer’s official application page before applying.
What credit score do I need to get a rewards credit card?
It depends on the card. Many popular rewards cards typically require good to excellent credit, but there are also solid options for fair credit and beginners. If you’re not sure, start with no-annual-fee cards and focus on building a strong payment history.
Can I earn cashback on every purchase?
Not always. Most cards exclude certain transactions like cash advances, wire transfers, money orders, gambling-related purchases, and sometimes person-to-person payments. The issuer’s terms define what counts as an eligible purchase.
Note: CashBackBunny is not a bank. We provide educational content to help you compare options. Always review the issuer’s terms before applying.