The Benefits Of Cash Back Credit Cards
By Joe Kenny
Cash back cards offer customers cash benefits on certain purchases. The offers differ for different cash back card companies. Some offer higher rewards on purchase of selected items while some provide benefit on almost any purchase. Cash back cards are an alternative to saving money. The cash back card users benefit from the cash refund, on spending a particular amount.
Cash back card rewards vary from creditor to creditor. 1% is the lowest reward on cash back cards and 6% is generally the highest limit of cash back benefit. card companies and banks generally place rewards on the purchase of some selected articles. Generally purchases made at gas stations, drug stores and grocery stores carry higher cash back percentage rewards, varying from 4% to 6%. Some cards require the user to spend a certain stipulated amount on the cash back card to be able to avail of the cash back facility.
Various Types of Benefits of Cash Back Cards: Cash back card rewards can be of three types -
‘Discounts’, ‘Points’ and ‘Air Miles’.
Several card companies tie up with certain brands and companies and their customers avail of discounts when making purchases from these companies.
Credit points are points earned by the card user on or above the purchase of a certain amount. These points can then be used to shop at select stores.
Air miles are the bonus miles rewarded to the card users. Many airlines team up with the card companies to extend ‘Travel Rewards’ to patrons. After that, card users are rewarded with 1 mile for every dollar spent on the card. This again varies from one company to another. Some card companies even offer two miles for each dollar spent on the card. Some travel rewards include free hotel accommodation, discount on car rentals and to buy a new car.
Cash back cards provide special benefits to customers for a year. It is therefore advisable to choose one with a low rate of interest. Timely monthly payment of bills is equally important, to avail of the card rewards. Late payments have a negative rating on your ‘Intro APR’. This may lead to the special benefits being lifted from your card.
0% Interest Rate: Cash back cards generally the enable card user to receive 0% balance transfers for a year, after the user signs on. Many card companies charge balance transfer fees up to 4%.
0% APR: Under the 0% APR scheme, some card companies provide only balance transfers at 0% APR, while some offer both balance transfers and purchases. The time period for which the 0% APR is valid is again very important to identify. The best card companies generally offer 0% APR for 12 to 15 months.
Users must read the small print carefully when applying for cash back cards. It is better to compare the rewards offered by the different card companies and then invest
Bank of England Surprises with Base Rate HikeThe surprise 0.25 percentage point hike in the base rate by the Bank of England to 4.75% left the majority of borrowers and economists wrong footed, sending UK equities, Gilts and short sterling falling. But with inflation the only focus of the BoE, the question may not be if, but when will rates rise again?in one that offers the best deal.
Article Source: http://www.articles-galore.com
Joe Kenny writes for CardGuide.co.uk, where visitors compare cards, and also offer many cash back cards to earn you cash as you spend
Visit today: www.cardguide.co.uk/
Products and Services mentioned in this article are available Here
