So, you want a new credit card and figure getting a reward card is the way to go. But you’re a bit confused about the difference between reward credit cards and cash back credit cards. It’s not surprising because even many credit card companies use the terms interchangeably. But they are different.
Make the right choice and you’ll find yourself with “free” gifts or cash. Make the wrong choice and you might not see any “free” rewards at all.
Invest just a little bit of time online comparing offers and when it comes time to redeem your rewards you’ll get what you want.
Here are some of the more important things to consider:
Would You Prefer Money, Products or Services?
Whereas a cash back credit card will send you cash periodically, a reward credit card issues points or miles for your purchases. You can then convert the reward points into discounts on travel and/or various services and products. The rewards vary from one card to the next.
How Do You Get the Most Value?
On the surface nothing beats a financial rebate. However, reward cards that give you points or miles often offer incentives that are usually worth quite a bit more than what you’d get for the equivalent use of your cash back credit card.
Thoroughly scrutinize what you can trade your points for because if you find things you like you will get much better value from reward card cards than from cash back credit cards.
The Big Problem with Reward Credit Cards
Reward credit cards can be a time-sucking hassle because you need to keep track of your points in order to get your rewards whereas cash back credit card companies either send you your money automatically or apply it directly to your balance due.
So, if you don’t want to bother tracking your miles and/or points a cash back credit card would be a better choice.
Cash Back Credit Cards Or Reward Credit Cards – Which One is Best For You?
13-12-2009 by adminCash Back Credit Cards – The Real Deal
25-10-2009 by admin
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!
A Look at Cash Back Credit Cards
07-10-2009 by admin
In recent times, many people are trying to avail cash back credit cards from banks and financial institutions. The need for availing cash back rises especially, in days of heavy financial pinch. Do they really benefit you in financial difficulties? One needs to consider several things before applying for cash back cards.
Credit cards are most valuable assets that you can use as and when required, but there are certain limitations and you must know how to use them wisely. This means, you can gain maximum benefits from cash back credit cards simply by making your monthly due on time. Thus, by doing this, you can become eligible to gain highest benefits of cash back credit cards.
Using Cash Back Credit Cards Wisely:
Each person has definite kinds of cash back cards providing different benefits. For instance, a gas credit card profits those who drive for several miles every month and have to maintain their car or spend some time in an inn. This is because, you get some points on your card that you can use by staying at hotels or you may get the cash for the gas purchase made.
Some gas cards also provide you with points for vehicle maintenance expenditure and you may even apply these points for purchasing a new car. Selecting a credit card for meeting the monthly expenses is best to derive greatest benefits out of it.
You also need to consider how much cash percentage your company gives you back on your ordinary purchases such as food, medications and gas. This may go anywhere around 1% to 6% for few products. Certainly, you need to have the highest percentage for maximum gains.
Balance transfer is one of the most important feature that your credit cards need to have, if you have enough balances on any other credit card. You can easily transfer your balances to your cash back credit card through this facility and enjoy a zero percent APR (Annual percentage rate) balance for maximum 15 months. Thus, you can save largely in interest amount and reduce debts on other credit cards.
Overview:
Do remember to gain maximum benefits from your cash back credit cards. Although you get some checks of rebate, you still need to pay late fees and interests for every month to know whether this credit card is beneficial. However, avoid falling under such circumstances. Never delay on your payment, since it may cause you more than what you actually would have paid.
It is wise to avail of cash credit cards that feature lower interest rate, zero annual fees, and other small fee amounts. In addition, remember that when you use your credit cards prudently, you can strongly build up your credit standing. When you possess a good credit standing, obviously you can make big purchases, especially when you do not have all your other credit cards expired.
Best Cash Back Credit Cards – Cash Rebates Just Make Sense
12-08-2009 by admin
Are you looking for the best cash back credit cards on the market today? If you are you most certainly are not alone. The fact of the matter is that cash reward, or cash rebate credit cards as some people refer to them, are the most sought-after category of cards today.
Just a few short years ago balance transfer offers were all the rage because credit was so easy to get. Consumers were running up large balances on one card and simply transferring it over to another to take advantage of low or 0% introductory rates.
Rewards cards are always popular because let’s face it, we all like to receive bonuses. Although it may seem as if receiving airline miles or getting enough points to trade them in for a new piece of luggage is a great deal, the fact is that we are paying for that when we use our cards anyway.
You see the advantage of using the best cash back credit cards is that you can actually get that cold hard cash simply by using your card to pay for the everyday purchases that you make. And the way the economy is these days, every dollar we save can make a big difference.
Think about it. Doesn’t it make sense to use a cash rebate card when purchasing your groceries or putting gas in your car? These are the expenses that we face regularly so why not make our spending dollars go as far as we possibly can by taking advantage of cash rebate programs.
It must be stated that in order to make a cash back credit card offer truly work for you requires discipline. The discipline I speak of is fiscal discipline. It doesn’t really matter how much you use your card to get cash back rebates if you are being charged a lot of money paying interest rates.
The point being that in order to truly make cash back cards work for you, you must pay off your balance in full each month so your savings are not wiped out by interest payments. And of course, you also want to make sure that the fees are low as well.
Finding the best cash back credit cards is not difficult when you know where to look. The leading comparison websites will have specialized categories and one of them should be dedicated solely to the latest cash rewards offers under the banners of American Express, Discover, MasterCard and Visa.
Credit Cards With Cash Back – Give Yourself a Cash Back Bonus
23-07-2009 by admin
Looking for credit cards with cash back? If you are then you certainly are not alone. Cash back credit cards are now the most popular form of credit on the market today. And is it any wonder why? With the poor economy we are all doing the best we can to stretch our spending dollars as much as possible.
Finding cash rewards programs is not at all difficult. Every major issuer including American Express, Discover, Bank of America, Chase, Citibank, Capital One and so on offer them.
Simply do a quick search on the Internet and you’ll find several comparison websites that will have a category dedicated exclusively to cashback offers… At least on the good sites anyway.
But before conducting your search it is important that you first take the time to identify exactly what your specific financial needs are. You should really take the time to understand how you spend your money. By doing this you will have an excellent idea of exactly what type of credit cards with cash back you should be looking for.
For instance, if you do the shopping for a large family then of course you probably spend quite a bit of money on groceries. Finding a cash rewards program that gives you even just 1% off on your grocery purchases can, over a period of time, mean substantial savings.
Another example would be that if you travel extensively in your car for work or even pleasure, then a credit card that offers cash rebates on gas would make sense. And the way that gasoline prices fluctuate it can actually mean that you will realize some pretty serious savings at the pump.
So let’s say you spend $500 per month at the grocery store. If you have a credit card that grants you say 3% cashback savings, you will save $15 per month. Multiply those monthly savings by 12 months and you have saved $180 over the course of a year. Not a bad deal when you think about it.
You may want to begin your search by taking a look at the cards offered through Discover Financial Services. Discover cards have long led the way in offering cash rewards programs to their cardholders. It is not at all uncommon to find many of their cards offering 5% cashback on a wide array of everyday purchases.
Of course I would be remiss if I did not point out to you the importance of reading over the terms and conditions of the offers you are interested in before you apply. It is important to understand the interest rates and fees charged for not only credit cards with cashback, but for all offers.