What You Should Know When Getting a Cash Rebate Credit Card
Most people will charge about $1,000 on your credit card per month. What if you could get cash back on all those purchases? Let’s say 1% cash back on those purchases; this will put another $120 in your pocket this year. Due to these rewards, many people have been moving from airline miles credit cards to cash rebate credit cards.
These reward credit cards have been so popular that 50 percent of all credit card offers this year had some sort of reward component, whether it is cash, airline tickets, or even savings for college. The best part is that around 80% of these cards have no annual fee. The only catch is there is usually a higher APR associated with reward credit cards, especially cash rewards. The reward credit card APR can be as high as 4% above the average credit card APR.
Due to the High APR, it is imperative that you pay off your cash rebate credit card on a monthly basis. Otherwise, those cash rewards will just go to waste because you will be paying more in interest then the rewards that you receive.
There are two types of cash rebate credit cards. A flat percentage back and those with a different level award system, moving from let’s say 0.25 percent to more than 1 percent based on your spending habits. For instants, Bank One’s Free Cash Rewards Visa pays you $25 each time you spend $2,500, up to $600 a year.
A good option if spend more than $6,000, the Blue Cash card from American Express rewards consumers who charge more than $6,000 on their card, with 3 percent back on select everyday purchases and 1.5 percent back on all other charges. However, if you spend less than $6,000 then the Blue Cash credit card is not a good option as a cash rebate credit card
Keep in mind, whatever credit card you decide to choose as your cash rebate credit card that you do not build up a big balance because the interest payments will negate the cash rebates that you receive.
