Cash Back Credit Cards – The Real Deal

Many credit card companies offer incentives for people to open accounts with them. By far the best of these incentives is the cash back rewards that many companies have adopted in an attempt to sway consumers away from their competitors. The purpose of this article is to provide a brief overview of cash back credit cards and how to use them responsibly.

What Are Cash Back Credit Cards Cash back cards are credit cards that offer cardholders a percentage of cash back on the purchases they make with the card. Unlike other rewards, like travel miles, which can only be used for certain things cash can be used for anything you want. This is the reason these cards are the most attractive to consumers.

How Much Cash Back Will You Get The percentage of cash back that you earn varies from card to card. At this time 1% seems to be the average from most cards. Most cards vary the percentage depending on what you are buying as well. For example, purchases at grocery stores and gas stations may earn 3% while other purchases earn only the normal 1% back.

How Will You Get The Cash Back The method of giving the cash back also varies from card to card. Some companies credit the account in the amount of the rebate while others send a gift card that can be used anywhere for purchases. It is a good idea to read the fine print before opening an account if you are particular about the way you receive your rewards.

When To Avoid Cash Back Credit Cards Cash back cards are designed to be appealing to consumers so they will open an account. Before you sign up for what seems like a great way to earn money while you shop, read the fine print. Does this card carry a higher APR than one without cash back? In that case, cash back won’t actually get you money … you’ll just be spending it back on interest. Also take notice of whether or not there is an annual fee charged on the card. It is counterproductive to pay money in order to earn cash back rewards.

Once you know all the answers to the previous questions, you will be well on your way to deciding whether or not to open a cash back credit card account. Then all you’ll have to do is go shopping!