Cashback Credit Card

Did you know that with a cashback credit card you can earn money on every purchase that you make?  That’s right!  With a cashback credit card a certain percentage of all of the money you spend using that credit card is returned to you in the form of a rebate check.  Unlike other rewards credit cards, you are not limited in how you spend the money you get back on your credit card.  You do not have to choose items from the company’s rewards program, but you can spend your reward any way you wish.  But how can you find the right cash back card?  Here are some tips on choosing and using a cash back rewards credit card.

First, take a look at the way the credit card figures its rewards points.  Usually you earn points for every purchase that you make.  These points are often translated into a percentage.  For instance, you may earn 1% back on all of the purchases that you make.  So you would earn $1 for every $100 that you spend.  The higher the percentage, the more money you would make off of your purchases.  However, some cashback credit card companies limit the amount of money you can earn as a cash back rebate each year, particularly if they offer a higher percentage in their rewards program.  If this limit is low, you might find that a card with a lower percentage but no total limit is more rewarding for you.

Cashback Credit Cards - Apply Online

Chase Free Cash Rewards Visa Card Intro APR - 0% Intro Period - 12 Months Regular APR - 13.74%  Blue Cash From American Express Intro APR - 0% Intro Period - 6 Months Regular APR - 13.24%

If you find a card that has a rewards program with a cap on the amount you can earn, you can still work around this.  Simply use the card until you have made it to the limit, and then start using a different cashback credit card.  If you are married, have two separate cards, one in your name and one in your spouse’s name.  This way when you have reached the cap on one card, you simply start using your spouse’s card so that you continue to earn rewards points and rebates for your family.  Then at the end of the year you will get two nice checks in the mail.

When shopping for your cashback credit card, you might want to look for one that offers gift certificates that you can purchase with your reward.  Some cards offer you the option of receiving a cash back rebate at the end of the year or using the points you have earned to “purchase” gift cards.  When you purchase gift cards you might find that your points go farther.  For instance, if you have earned $100 worth of cash back points or rebates at the end of the year, you may be able to purchase $200 worth of gift cards instead of getting a $100 check.  If you purchase gift cards to places where you regularly shop, you can double your rewards simply by turning them into gift cards and then using them like the cash you would have received.

Once you have found the right cash rewards credit card, make sure you pay attention to the use of your points.  Often rebate reward points will expire, and you might have to do something to cash them in.  You may want to shop for a card that will automatically send you a check each year for your rebate amount.  This will save you the hassle of having to ask for your reward, and you will also avoid the risk of forgetting to do so and losing the money you have earned.

Once you have your card, avoid the temptation to overspend just because you are getting cash back.  Continue to use good judgment in your spending habits.  Keep in mind, though, that the more of your day-to-day purchases that you make with your cashback credit card, the more money you will earn in the cash back program.