Cashback Vs. Rewards Credit Cards

by : Barbara Camie

By using the 0% transfer rate, they can delay to make the payment up to six months or more without getting charged with interests. These offers have become so popular that credit card issuers found themselves victim of their own success. Millions of people started to move their balances frequently from card to card due to avoid the interest payment.

In order to avoid loosing million of dollars of interest payment, financial organizations have introduced the 'handling charge' for balance transfer which turned the cards much less attractive to consumers who wanted to get the most advantage from their credit cards. But don't be disappointed. Another excellent offer takes place in the credit card world which will positively ensure more profitable use of credit cards: Cashback and Rewards programs.

Advantages of having a Cash-back type of Credit Cards
The benefits in using the cash back credit card with that of the rewards credit card is the flexibility. The cash back type of credit card will automatically earn you a point or rebate plus in any type of purchases that you do to your credit card. Then, the amount of rebates that you get will depend on the issuer of your credit card. This can range from 1% up to 2% rebates. In spite the fact that the rebate points are low in the cash back credit card, it will give the credit user the liberty in using the credit card in any merchandizing stores that they prefer and will still get points in all of their purchases.
Advantages of having a Rewards type of Credit Cards
In the rewards type credit cards they give generally a much higher percentages ranging to at least 5% in purchases. Meanwhile, their rebate points are limited to the purchase designated in the affiliate merchants.
In the sample, when you choose a gas reward types of credit card, you can be entitled to have a rebate points to get yourself a refuel for your vehicle in any affiliate gas stations. Then you want to use your rewards points in order to buy in any establishments, there will be no points that can be counted to your account.
In the time that you get a hotel rewards type of credit card, you will earn several points to any hotel establishments to your credit card.