Rebates on credit cards are all the rage, because who can resist the chance to make money while spending? But don't you think that before getting a new card, you should spend a little time weighing the pros and cons of the credit card cash back offer? We've told you everything you need to know about credit cards with rebates and how to get the most out of the different rebates.
It seems crazy that you could get paid to spend money, but that's the idea behind cash back or rebate credit cards. Credit cards are becoming more and more popular, so companies are working hard to make you think that theirs is the best choice for you. Here are some tips on how to get the most out of your cash back card and credit card rebates:
Taking Stock of Cash Back Offers on Credit Cards
Make a list of the things you buy most often, and then get a card that gives you cash back for these things. The best way to get credit card rebates is to find a card that gives you money back on ALL of your purchases, no matter where you make them. The credit card rebate rate that gives you the most cash back may not be the best one for you. You might be able to get a credit card with a rebate rate as high as 5%, but it might only work for certain purchases and stores and not the ones you need.
Choose your credit cards with cash back based on the rewards you want. Some cards give you a discount on purchases right away, while others send you gift cards or show up as points on your card statement. Who said a cash back offer on a credit card was easy? If you'd rather get a bonus check, choose a cash back offer that pays out every year or every six months. This way, you could have a nice Christmas bonus in your wallet.
When you need to fill up your gas tank, a card that gives you cash back can be helpful. For every gallon you buy, you get money off. You might even get cash back if you buy something at a certain gas station. Cards that give you cash back on all purchases usually have a lower rate (usually 0.5 percent), but they could be worth it in the long run if you don't only shop at a few stores. In this case, you should get a card that works at these stores, but be aware that these cards might have higher interest rates.
Compare cash-back credit cards on websites often to make sure you don't miss out on better APRs and rewards. In fact, if you have a balance on your accounts, interest charges could be taking away from the cash back rewards you get.
Do You Need Cash-Back Credit Cards?
Think of the cash-back card as a loan that gives you cash back. These discounts can be anywhere from 1% to 5% off, depending on what you buy. Make sure you know what you are getting into. For example, if you own a car, you should only apply for a credit card that gives you money back on gas.
Check the percentage of the rebate before you sign the deal. There are different ways to get a credit card rebate. Some companies offer discounts every year in the form of cash bonuses, while others may send the money straight to the customer's account. You might also be able to link your rebate to a savings account or get a certain number of points. You might also have to spend your points by a certain date, so don't save them up if you don't know when they expire. If you do most of your shopping once a month or like to buy things in bulk, this type of card might work for you. Chances are, you will need to show that you have a good credit history before the company will let you use all of its perks.
Most importantly, you should know that the credit card rebates might not be enough to pay for everything you want to buy. If you remember this and a few other basics, you'll be on your way to saving a lot of money with credit card rebates in no time.
