Introduction
If you use a credit card regularly and pay your balance in full each month, you may want to look into applying for a credit card with cash back rewards. Credit cash back rewards will allows you to earn rebates on the purchase you make with the card. However, almost 50% of all credit card programs offer cash back rewards. Therefore, selecting the right one can be a bit of a challenge. Here are some of the factors you should consider while selecting a credit card cash back program.
Step 1
Consider the Payouts
The typical credit cash back reward offered by card companies is 1%. However, some credit cash back cards will allow you to boost your payout based on the amount of money you spend or purchases made in special spending categories. Some cash back programs will offer a 50 percent cash bonus on all rewards earned during a year, while some programs will offer 5-6% rewards, but restricted to purchases of a particular category. It is important to note that you should look for card that matches your spending habits. The last thing you want to do is to buy items you do not need, just to take advantage of your credit cash back rewards.
Step 2
The Process Involved in Redeeming Cash Back Rewards
Credit cash back reward programs will often have in place, a set of clauses and rules on how you can collect your rewards. The program may require that you accumulate a certain number of points or cash before you can collect your cash back rewards. Other may require you to collect a certain amount of credit and to redeem you points once they have hit certain increments, while other will allow you to redeem you points any time you want for what ever cash credits you have in your account.
Step 3
A signing up Bonus
Some credit cash back reward programs will offer you a substantial bonus for signing up. However, it is important to bear in mind that you will eventually have to pay for the signing up bonus, in the form of higher APRs than those charged on regular cards. Therefore, you should try to consider the gains versus the costs of using this type of cash back program. If you do not intend to carry your balance from month to month, then a high APR rate should not concern you.
Tips
Read Through the Terms and Conditions
It is always important to read through the terms and conditions stipulated for a credit card back reward program. You are likely to find some annual fees and other hidden costs which are attached to the card, which could make a difference in its maintenance costs. Certain transaction may also be exempted from cash back rewards.
Sources and Citations
Make Your Payments on Time
To avoid unnecessary interest charges, make sure to pay off your credit card cash back on time. The payment method you use may dictate the period it will take for the funds to reach its destination. Those guidelines will usually be found on the back of a statement.
