There are all types of credit cards and credit card rewards programs available, with everything from points systems to earn airline tickets to cash back credit cards. Even though using a credit card involves paying interest fees and other costs, they also come with many other benefits beyond the ability to make large purchases when cash is not available. A cash back credit card is one of the most popular types of credit cards available right now, since cardholders can earn cash for every purchase they make on their card.
Even though the terms and conditions of various cash back credit cards differ, they all follow the same basic rules. When purchases are made using the credit card, cash is earned, and the cardholder is rewarded with the cash they have earned on their card. The cash can either be in the form of a check or go towards the balance on the card, since either way the cardholder is benefiting from the earned rewards.
The way that these rewards are built up varies from one credit card company to another, but all of these cash back credit cards offer at least a minimal reward for every purchase made on the card. There may be additional rewards offered for purchases made with participating merchants; usually gas stations and grocery stores - these rewards can be double or even triple the usual cash back amount. The first purchase made on a cash back credit card is also generally eligible for a greater reward as well. These rewards are available even for large purchases.
The disbursement of these rewards will come at different times depending on the credit card company offering the cash back credit card. Many will make the payment upon the accumulation of a certain amount, $50 is common. Other companies will allow cardholders to simply request a check when they would like one. Bi-annual and annual payments are commonplace as well - and osme companies will just apply the cash rewards to the cardholder's balance.
Even a cash back credit card has some downsides. Monthly finance charges often apply if you are carrying a balance on your card. There are also annual or even monthly fees which may apply. Processing fees are sometimes charged when a reward is disbursed. And of course, there are the usual fees you expect with a credit card - late fees, over the credit limit fees, balance transfer fees and the like. One thing to remember about cash back credit cards; making your payments late may void your cash rewards (this will be spelled out in your terms and conditions - be sure to read these).
Cash back credit cards offer many benefits to the consumer. For those who use their credit cards for the bulk of their purchases, these cards' rewards can really add up. While there are downsides, the benefits of cash back credit cards easily outweigh them for most consumers.
About the Author:
Steven J. Talrechi is a veteran on credit for more than 10 years. He authors various topics on said field, including application for a credit card, and different credit card offers.
No comments:
Post a Comment