Should You Use CashBack Credit Cards?
Before applying for the 'cashback credit cards', you should take a look at the pros and cons of them. I agree that it sounds like a great idea to get cash back when you use your new cards but it isn't the best choice for everyone. The best argument for the cashback credit cards is in the name - you get cash back.
However, you may not get as much as you might expect. Some of these cards have a limit you have to spend before you qualify to get money back. If you don't meet the limit, you may get nothing back. Check the limit before applying - do you charge that much each month?
On the other side, the cash reward may be limited to a certain spending limit. Perhaps it pays 2% back on every purchase but only for the first $5000 you charge to the card. The best deals for this special type of credit account are the ones with no limits telling you how much or how little you have to spend to get the bonus. Also, you don't want a card where bonus rewards have a deadline and expire if you haven't charged enough by a certain date.
Annual Fees
These cards often have annual fees attached to them. It may not seem like much as you think you will gain more money back than the card will cost you. Make sure to read the fine print to be sure that's the case. If you don't use credit cards often the cash back may entice you to spend more than you should.
If you don't use a charge card often, the cash bonus may not be enough to make up for an annual fee. Remember, many credit cards have no annul fees at all so check the terms for getting your 2% or 5% rebate and see if it suits the way you shop.
Cash back is such a great advertising slogan. It's so good that many will sign up without a careful check of what they are agreeing to. Some of the highest interest rates, even for those with good credit are on special credit accounts like this cash offer.
If you pay your balance in full every month this may not concern you at all. However, if you are one of those who carry a balance on their account from month to month, you could actually end up paying much more in interest fees than the card is worth.
General Things To Look For
If you know what you need and what to look for in the cash back credit card, this account may be perfect for you. Some of the general things you should ask yourself before picking your cashback credit cards are following:
- Are there any annual fees?
- Is the interest rate too high?
- What are the qualifying limits?
- How is the cash bonus paid?
My experience with cash back credit cards is that you can actually profit from them once you spend some time learning the terms and use those regulations to your advantage. Unfortunately, a lot of people are too lazy to do that and they often end up with unpleasant surprises which cost them a lot of money.
