The Cash Back Credit Cards

Cash back credit cards sound like a miracle don’t they? Credit card providers handing out free money for simply using your card on every day purchases! So let’s see if cash back suits you…

How do Cash Back Cards Work?

The principle with the cash back credit cards is really quite simple. As a credit card holder, chances are you use your card fairly regularly to make purchases in stores or online. Credit card providers allow you to benefit from your purchases by giving you a small percentage of the purchase amount as ‘cash back’. So essentially the more you spend, the more you will earn. The earnings are then credited back to your outstanding balance!

The cash back rates will obviously vary from card to card, but generally you’ll find the rate to be somewhere around 2-4%. So for example, if you spend $1000 you would look to earn around $20 to $40. That’s not very much? Well it’s not a huge amount, but you’ll be pleasantly surprised at how the small dollars pile up for the end of the month!

The best strategy is to use your cash back credit card in place of your banks debit card for daily spending, then use the money you left untouched in your bank account to clear off the balance at the end of the month.

Is a Cash Back Credit Card right for YOU?

If you aren’t certain you’ll be able to pay you balance off in full every month, then a cash back card is not for you as you’ll find that the interest you’re being charged will swallow up any cashback you may have earned. Credit card companies are constantly catching people in this trap, don’t be one of them!

By using the card for your everyday spending, then clearing the balance with the money you would have normally used, you will avoid accruing interest while still benefiting from the free cashback on your purchases!

Sounds great? It’s important to remember that although you’re earning cash back on your purchases, your card is still a credit card, and as such you’ll be paying interest on any outstanding balance you carry into the following month, so to make the card really work for you it’s crucial you clear the balance monthly, that way youll be earning cashback but not accruing any interest. Simply free cash!

it’s for you if…

  • You are certain you can pay your balance off in
    full each month with no problem.

  • You are happy to use a cashback card in place of
    your bank card on a daily basis.

  • You want to earn free money from a cash back
    credit card!

it’s not for you if…

  • You feel that you may have problems paying your
    bill in full each month.

  • You think you don’t have a guaranteed and stable

  • You would prefer to use your bank card or cash
    for your daily purchases and payments.

So you’ve carefully thought about it and decided that this type of credit card is the right choice for you? Great! Now let’s compare some of the top cashback credit cards available online, to find the most suitable for your needs.

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