Cash Reward Credit Cards - Getting Paid to Spend
Cash Reward Credit Cards - Getting Paid to Spend
If you’re in two minds of whether to buy that expensive dress or not, don’t worry because cash rebate credit cards actually pay you to spend. You can purchase items at grocery stores, drugstores, restaurants, auto-pay to manage bills, travel and vacations and in return these credit cards give you cashback. It’s almost an impetus to spend!
Rebate Percentage and Who is it Best for?
The rebate percentage offered is different depending on the credit card company. However, in general, the rate ranges from 0.5% to even 2%. Also, the rebate percentage applies to a certain range of purchases made. For example, there are slots such as 0 to 2000 dollars, 2000 to 4000, 4000 to 6000 and so on.
Credit cards that offer a rebate provide a great way to shop and earn too. However, this only helps if you have been regular at paying off your outstanding balances. Every month, all accumulated balances need to be paid off in full. Else the entire scheme fails. Instead, you might end up accumulating even more debt.
Qualifying for Cash Rebate Credit Cards
Usually, credit card companies offer cash rebates to people who have a good credit history and always pay on time. Also, if the credit history of a person is weak, then chances are the default interest rate will be very high. Nevertheless, it is best to go for a card with a 0% APR. That way, at least purchases are not subject to interest rates.
Types of Cash Back Credit Cards
There are several types of cashback credit cards:
- The ones that accumulate reward points
- Frequent flyer miles
- Subsidies on petrol and gas
Cashback vs. Cash Rebate Credit Card
Nevertheless, please keep in mind that a cashback credit card is different from a cash rebate credit card. In case you’re wondering, a cashback credit card is one that can either accumulate reward points for shopping, frequent flyer miles or even subsidies on gasoline, etc. However, a cash rebate credit card is one that only gives you cashback. Therefore, it is different from a cashback card.
Automatic Cash Rebate Credit Card
Sometimes you may need to ask for the cash rebate from the credit card and in some cases, the company automatically credits the amount to your account. However, this depends on the policy of the credit card company.
Tracking it Online
Cash rebate credit cards come with a handy feature – of being able to track cash accumulated online. This makes it easy to know how much you’ve spent and how much you’ve earned as a result.
Paying your bills gets so much easier with an online facility. No more rushing to the bank! If needed, you may entrust a person to manage your account apart from any additional cards you may have got. Any theft of the card needs to be reported to the credit card company immediately. Soon after, the card will be blocked by the bank to prevent any further usage. Most credit card companies have a fraud detection system in place – let's say your card account is encountering unusually high purchases. The bank might suspect fraudulent transactions. Therefore, they will typically contact you to confirm if you have performed these transactions or not.
Therefore, safety features are always built into these credit cards thus enabling customers to shop hassle-free and smoothly.
Use it Responsibly
A cash rebate credit card can often tempt a person into spending more. After all, that’s what credit card companies want – you to spend more. Therefore, while using cash rebate credit cards, be sure to exercise caution and use them judiciously.
Who are Cashback and Cash Rebate Cards for?
Cashback and Cash Rebate cards are for everyone who needs access to a line of credit. As the world continues to move towards digital transactions and democratizing currency, fewer and fewer people are using cash to pay for goods. Credit cards are essential to building long-term credit to allow expanded purchasing power in the future, given that they’re used responsibly. There is typically no difference between a card that pays Cashback and those that provide zero-return. If you’re going to be making purchases on your credit card, there is no reason NOT to choose a Cashback or Cash Rebate card. You’ll be missing out on free money!
If used irresponsibly, any Credit Card (cashback, cash rebate, or standard) can have a long-term impact that could hurt your ability to borrow or (more likely) result in extremely high-interest rates when opening a new line of credit. On the flip side, they can be very good if they are used wisely. The evil or good of things are not in the cards themselves, but rather in how you choose to use them. Quick example, I use the auto-pay system for most of my bills. Everything will go onto the credit card. I will then basically have one bill to pay by the end of the month. I will then pay that credit card in full, thus avoiding any interest charges. The credit card gives me points for every dollar spent. So, I very easily and quickly accumulate points. These points can then be cashed in for actual cash, or if I choose gift cards (amazon, home depot, etc.). So, you can see how quickly I can make money just from using credit cards.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2020 Jason Nicolosi