Cash Back Credit Cards: The Cash… Is Back

Credit card companies are once again seeking new credit card applicants, and this time, they’re trying to lure them in with cash back rewards. With the current economic situation, any financial tools results in money directly repaid are undoubtedly experiencing increased popularity. If you are cautious about this new credit card trend, you can actually sway these cash back credit cards to your advantage.

Fundamentally, credit card companies advertise cash back credit cards, implying that a percentage of whatever you charge to your credit card will be returned to you. As an example, Discover card issues a 5% cash back on one of its credit cards for fashion shopping. So, if a $100 purchase was made, you would receive $5 for buying whatever you like. Credit card companies always bounce along with whatever goods they can provide as bait for credit card applications, rotating among gas, clothing, and movie tickets.

However, there is always a drawback with good things in life. Credit cards are implementing different regulations now for cash rewards, so stay vigilant. When late payments occur, some cash back credit card rewards are voided, but many credit card issuers let you pay fees to resume your cash back rewards program – lucky you. Some feature yearly charges or spending caps that alter eligibility; you may have to pay a certain amount on your card, much like with insurance, before benefits like cash back kick in. When applying for a credit card featuring cash back rewards, carefully study all the terms and conditions, as well as possible penalties for credit card faux pas.

But, there are ways to take control of this type of credit card rewards plan. Most vitally, understand the credit card contract fully, including late fees and reward program specifics, and make your credit card payments punctually each month. Remember also that many credit card companies only provide cash rewards up to a certain dollar amount, so spend just enough for cash back eligibility, but no more – there’s no reward past what you’ve already spent. Additionally, be aware of expiration dates and alterations to the credit card’s reward program, as changes often occur without warning; companies have done it for years.