The key words "cash back" appeal to everyone, especially those who are on the lookout for more reasons to use their credit cards. It is even safe to say that this would arouse the curiosity of most people to at least find out how this concept works. In fact, the recent hype surrounding cash back credit cards has seen millions of consumers switching their regular cards for these ones. It all seems too good to be true that we are getting our money back for nothing. Well, if that's what you are thinking, read on to learn five reasons why you too should play the cash back game.
1. You charge everything to your credit card
The cash back incentive works well for those who charge everything to their credit cards. That's literally everything – clothes, gas, groceries, dinners, etc. With a cash back percentage of 0.5% - 1% (some may even offer an introductory 2%), you need to spend a huge amount in order for your cash back to be significant. Therefore, if you are comfortable with charging everything to your card, then cash back credit cards are all for you!
2. You pay off you credit card balance every month
Are you the disciplined credit card user who pays off your outstanding charges each month? If you are, then cash back credit cards are for you! As huge charges are made to these cards, not being able to pay off your balance each month will just result in greater interest charges as compared to your cash back value.
3. You have a good credit rating
Credit card companies usually award cash back credit cards to cardholders who have a good credit rating. So, if you are one of them, then you should really get one and start earning points today!
4. You get to redeem your points once you have enough
You gain points for every purchase you charge to your card. Once you have attained a significant threshold, you have a few options to redeem your cash. You can either get it credited to your outstanding credit card bill to reduce your balance payment, or you get the credit card to send cash to you.
5. A win-win situation for you, the credit card company, and the merchant
Take a closer look, and you'll see that cash back cards are a win-win for everyone. Credit card companies earn more through the merchant charges; merchants get more people to buy their products; you get cash back for making purchases! That just has to be the ultimate reason for you to get a cash back credit card today.
5 Cash Back Credit Cards
When you are looking at the cash back credit cards you will want to see what you are going to receive in return for using the credit card. Some will pay you a percentage of the amount that you are spending for purchases. Some of the percentages could range from 1% to 5% it will all depend on the credit card company that you are looking at.
When you see the 1%, you may not think that you are going to benefit from that card very much but you will need to look at how much you are planning to use the credit card. If you are using the credit card, more for purchases in a store the 1% may be a benefit for you.
If you are using the credit card for gas purchases then you may want to see about the cash back credit cards that will give you 5% for all gas purchases. In that case, for the gas purchases you are going to benefit the most from the 5% when you take into consideration how much you are spending on gas for the month all the time.
When you are looking at cash back credit card you are even going to want to check to see how you are going to receive the cash rewards that you have earned. Some of the credit cards are going to credit your account the amount that you have received for the cash back to your credit card account.
Yet, there are some of the credit card companies that will send you a check for the cash reward that you have earned. They may even offer to give you a direct deposit into your personal account for the savings you acquired. One other way you are able to receive, your cash back reward for you credit card purchases is through a gift card. With the gift card, you may even be able to double your cash back rewards. In that case if you have $20 in cash back reward in choose to receive a gift card you could actually see a gift card come to you for $40 instead of $20.
When you are looking at cash back credit card you are going to want to make sure that you are reading all of the terms and conditions that follow the use of the credit card. That way there you are going to be well informed before you start to use the credit card thinking you are going to receive a large cash back reward from the credit card company. You will want to make sure that you take your time and look at all the different offers that you will see with the cash back credit cards.
Both Alan Bernstein & Daniel N. 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.
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