Cash back credit cards are now being made available in a variety of new options. However, it is important for consumers not to skip over the process of researching all details of a card before applying. Cash back credit cards, although useful credit card solutions, also frequently carry with them several "catches" (targeted reward categories, high credit necessary to apply, potentially capped rewards) that consumers need to inform themselves about in order to maximize their effective use of the cards.
In a world of rising gas prices and falling employee compensation, it's more true than ever that a small amount of cash can go a very long way. This, at least, is the logic behind the variety of new cash back credit cards that now flood the market from many major providers. These cards offer a number of different cash back plans for several types of purchases: cash back for retirement, for charity, for affiliate products. All are designed, at least in part, to encourage credit card use by returning some percentage of the purchase price to the consumer at the end of the year. It sounds like--and can be--a good deal, the literal truth of the classic adage "spend money to make money."
But in addition to the good deal, cash back credit cards carry with them hidden hooks and lines. The card application always lists these plainly, but customers who just want to cash in on the promise of quick percentage rewards can often overlook the most crucial caveats of all. More savvy customers, however, should ask themselves maybe the most important question anyone can ask when considering a new credit card: what's the catch?
The first catch is that the high-end cash back rewards don't usually apply to entertainment, housing, or luxury items. Since these make up a large portion of most people's paychecks, anyone who believes that a hypothetical 5% cash back guarantee will apply to everything purchased with that cash back credit card will be in for a rude surprise. The higher fees are typically targeted toward fundamental goods in our society: supermarket purchases, drugstore runs, gasoline. Most of the best cash back credit cards offer a flat 1% fee on other purchases, which can be substantial by the end of a year, but still possibly not what the customer who only glanced through the brochure expects.
Another big catch is the high credit rating necessary to get one's hands on any of the best cash back credit cards. The most popular cards all require at least a good credit rating, with many asking for excellent. The effect of this is to push the target market of typical cash back credit card consumers toward two groups: first-time credit card applicants and the very financially prudent. And it is a nice bonus for people with good credit (or at least no bad credit) to be able to earn typically 1% of the purchase of price back on most goods, but for anyone in dire financial straits looking to put together some extra money through cash back rewards, it would be wise to look elsewhere.
The biggest catch of all, though, is that the promised rewards may run out sooner than the uninformed customer thinks. Depending on the individual card, percentage rewards in some cases only apply after a certain amount of money has already been charged to the card in a given year ($2000 and up, in the low range), or more alarmingly: rewards may stop applying after a certain amount of money has been put toward the products that generate the highest percentage of rewards ($1,200, to quote one of the high figures.) If a customer spends a large amount of money on fuel in a year, expecting cash back options to alleviate some of the sting of current high gas prices, that customer may find the rewards less rewarding. In some cases, the number of cash back rewards earned through using a cash back credit card can even be capped at a certain figure, at which point what the customer has left is just a credit card like any other.
So yes, the percentages sound good, initially, and do help to offset typical expenses. But, as always, it's wise to look carefully at the fine print of an agreement before signing, and to remember that there is no hook without a string attached. Cash back credit cards can be a powerful tool for consumers to get something back for what they put into the economy, but without informing themselves and doing the research, they may just find themselves caught up in trouble of their own making.
2 Cash Back Credit Card
There are some niche markets that you really have to participate in as a content publisher because of their pure potential for digital profits. I've been going on about markets such as investment, real estate and travel for a while because all of them have cash-rich prospects and offer multiple opportunities to earn from a mix of big-ticket affiliate programs, information products, Adsense & more.
I've been wanting to introduce this niche to you for awhile. Why? Because yes it returns over 8 million searches online every month, Adsense per click values get close to double figures and there are a mass of big-name affiliate programs to promote. But there's something even bigger.
The reason I believe it just HAS to form part of your product portfolio is the shocking pay per lead programs offered by certain big name companies which affords you the possibility of earning a whopping $65 per lead just for the prospect filling out an approved form. As pay per leads go, this is the holy grail and I'll tell you exactly where to find this affiliate program in the download area.
Why The Credit Card Niche Is A Dream Come True For Content Publishers Around The World
It's estimated that the credit card business is worth $50 billion in the United States alone, and the total amount of credit card debt in America is over $800 billion. Those are staggering facts, and from the point of view of a content publisher you ought to be licking your lips in delight because we've already seen that over 8 million people a month search for "credit card" online. When there's that type of volume in terms of both prospects and pure cash changing hands, you can bet there's money to be made - and thanks to the internet even "Joe Blog" can get involved in a big way by owning a simple site or blog with targeted content & the right affiliated programs.
More facts? There are over 1.2 billion credit cards in circulation in the U.S. and almost 80% of individuals are deemed credit-worthy.
The thing is, credit card companies know that with the average U.S. household racking up an eye-popping $7,000 in credit card debt, the more sign-ups they get for their credit cards...the more money they make. It's a pure numbers game and each and every sign up means big money for them - not just as a one off but for years into the future.
You see, that's exactly why they'll throw around a lot of money to get these customers (and lots of it). That's why there's pay per click & pay per lead potential here that almost defies belief (and frankly it makes the internet marketing payouts seem like a sad joke). Let's review the potential briefly:
Pay Per Click Potential
Credit card companies are known to bid around the $4 to $8 per click mark on Adwords and even more on certain keywords. As a result, a simple content based credit card site/blog can make out like a bandit with Adsense & other contextual programs.
Pay Per Lead Potential
There are over one billion credit cards in circulation within the U.S. alone and credit card companies are thought to have scooped up a cool $50 billion in revenues from late fees and charges alone. It's a pure numbers game for these companies?they know the more sign-ups they get, the more profits they'll see. It's a little like internet marketers and their mailing lists. The difference is that these multi-million dollar credit card companies will pay BIG to generate leads. To you and I, even $1 to generate a lead seems excessive, but to a major credit card company even $50 can be cost effective because the lifetime value of that lead can be thousands of dollars.
The potential with pay per lead and Adsense is strong to say the least.
Several bids on contextual (Adsense) advertising are at the $5, $8 even $10 mark while the credit card niche is possibly the strongest I've ever seen for pay per lead income. One major credit card company I've found pays a whopping $65 per application they receive from your referrals. The customer doesn't have to buy anything so you can expect a far better conversion ratio than if you were trying to sell an affiliate program - yet the reward is higher than you'll see as an affiliate from the majority of products out there. And we're just at the starting point? my belief is that pay per lead will be a successful model for credit card companies to sign-up new cardholders in a way that can be traced. Surely, others will follow suit. To me, that's really incredible and the PPL possibilities alone warrant a presence in this market.
So Now You Understand The Potential, How Can You Set-Up A Simple Content Website That Can Start Delivering Earnings Right Off The Bat?
set up a content blog or website with information that's going to interest your prospects. Cover topics like:
- How credit cards work
- How to spot a good credit card deal
- Different features of the many credit cards on display
- Credit cards to suit different types of customer (eg student cards, reward cards etc)
- Balance transfers
?you get the jist. The best way to structure your site is to have each specific article on one page with 3 Adsense link units and of course the link to your pay per lead program so when your prospects do apply (and if they are targeted, many will) you'll get $65 per application.
If you want to profit from niche marketing, you need to be in the right markets. It's well worth your time setting up a presence in this niche ? the rewards speak for themselves.
Both Robert Alan & Tuks Engineer are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Robert Alan has sinced written about articles on various topics from Credit Cards, Business Credit Cards and Credit Cards. For more information on cash back credit cards available in the marketplace, Robert Alan recommends that you visit CreditCardAssist.com. Robert Alan's top article generates over 110000 views. Bookmark Robert Alan to your Favourites.
Tuks Engineer has sinced written about articles on various topics from Credit Card Solution, Financial Planning and Investing and Trading. Which Famous Credit Card Company Offers $65 Per Lead You Send Them? How Can You Grab All The Content You Need To Set Up An Immediate Site Or Blog In The Credit Card Niche?. Tuks Engineer's top article generates over 12100 views. Bookmark Tuks Engineer to your Favourites.
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