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Cash Back Credit Cards
What are cash back credit cards? A cash back card differs from various other cards in that it gives you a very direct reward. Where some credit cards may earn you miles at airlines, others might give you discounts at certain stores, cashback cards offer cash rewards for your purchases. This is not some abstract notion of money, it's not like a coupon that you can't use at the store but can use for online deals or something arbitrary and complicated like that. Cash rewards are just that: monies that is being put back in your wallet every time you use your card. While it is a good idea to buy items with cash or debit when possible, cash reward credit cards help to offset the greater cost of spending with a traditional card. Many cards will offer one percent cash back on literally every single purchase, while others might reward you specifically for shopping online or paying the check at restaurants. In any event, the appeal of a cash back rewards card is simple: You get money back with purchases. It's a good idea to find a card that fits your own personal needs and lifestyle. Clearly, a card that rewards you for shopping online is of no use if you do all of your shopping at real live stores, and a card that rewards you for buying gas if of no use if you take buses, subways and taxis everywhere. Traditional rewards cards might reward you with airline miles or discounts at certain locations, but the real appeal of a cash back card is that your reward is money. While not everyone travels often enough to make use of airline miles and not everyone eats out enough to make use of discounts at this or that restaurant, cash back cards are appealing because everybody uses money.
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Understanding the Types of Cash Back Rewards Credit Cards
Many credit cards tout the benefit of cash back rewards. However, not every type of reward is returned in the form of cash with every purchase. In fact, the point of cash back rewards credit cards is to entice the cardholder to use the card as much as possible. The cash back incentive in the form of rebates, points and actual cash are all ways to accomplish this.
Rebates
Credit cards issued by gas retailers and department stores use rebates more often than others. The rebate is a specific dollar amount returned to the cardholder. The amount of the rebate is a percentage of the purchases made with the credit cards. The rebates are given back to the cardholder in the form of coupons, gift cards or a check from the credit card company.
Points
Each purchase on a credit card accumulates a certain amount of points. The number of points depend on the amount of the purchase, and usually a specific number of points per dollar spent. Cardholders must accumulate a certain number of points in order to use them. The points can be redeemed for free hotel stays, plane tickets, electronics, jewelry, clothing, gift cards and other goods. Some cards also offer large discounts on these items in exchange for points. Credit card miles rewards work like points programs.
Real Cash
Actual monies from cash back credit cards is possible. These programs work like rebates, with a percentage of the purchases being returned as cash in the form of a check, coupon or cash amount added back to your card.
Read your card contract carefully to understand just how that promised "cash" will be returned. You may find that your reward isn't actual cash and that a lot of spending must occur before your can be rewarded. |
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Review by Editors at http://cashbackcreditcards.us I have nothing but praise for Discover Financial services in how they treat their card holder, but online and with excellent customer service over the telephone. They spoke clear English and were extremely polite, even … Continue reading →
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We have added over 15 new cash back and rewards credit card offers for your review and comparison. It is important to take your time when choosing a credit card.
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Please bes sure to read our cashback insight over at our blog entitled The Best Cards Back Credit Card Reviews.
Copyright 2011, Cash Back Credit Cards
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