How To Find The Best Cash Rebate Credit Cards
Filed Under (Credit Cards Blog) by creditblogger on 07-08-2008
Cash rebate credit cards give you cash rewards each and every time you make a purchase with your credit card. There are many types of rewards credit cards out there but cash back credit cards are the most popular. Why? At the end of the day, you want to get a surprise in the mail or on your bill, and that’s exactly what you get with cash rebate cards.
It is not to say that store discounts and airline rewards are not popular. In fact, airline credit cards are running a close second to cash rebate cards for small businesses. But if you are a heavy credit card user, cash rebate credit cards will give you a lot of money in return. I personally know a pay per click marketer who uses advanta’s online marketer’s card to get 5% cash back on his advertising costs. In fact, he has three different cash back cards to maximize his rebates. Isn’t it smart to cut your costs by 3-5%?
Most cash back cards come with higher rates and fees, so do be careful before applying for a cash rebate credit card. But if you can afford to pay your balances in full and on time, then cash back rewards can be great for you and your business.
The percentage of cash back will vary, but it will be between 1%, with 5% depending on the type of your purchase. For every purchase you make using your cash rebate credit card, you’ll get a small amount of money back. Using your credit card on a frequent basis will give you a lot of cash back at the end of the year. Make sure you read the fine print before planning your dream vacation with your rebates. Most credit card companies limit how much you can earn back and some drop the rebate percentage to 1% or less after your first couple of thousands of spending.
So here is what you should know before applying for a cash rebate credit card:
- Monthly Expenditures: How much money do you plan on putting on your credit card? Sometimes it’s better to choose a different rewards credit card, depending on your monthly balance.
- Cash Back %: you need to know exactly how much you will be getting from a cash back credit card before applying. A cash back credit card that pays you 1% on your fees may not be the best option.
- Cash Back Limits: do yourself a favor and read the terms and conditions before applying. Most credit cards impose limits on the amount of money you can earn back with their cards. There are two types of limits:
- Balance Limit: with this type of limit, you can’t earn more than a certain amount, let’s say $500. So you can put $1m on your credit card but all you’ll be getting back is $500.
- Balance Threshold Limit: this type of limit is becoming more popular with credit card companies as more and more people forget to read the terms and conditions. You apply for a card and you think you will be getting back 5% on all your qualifying purchases, right? Wrong! Since you did not read the terms and conditions and the tiny “font 1″ lines carefully, you missed the fact that you will be getting 5% cash back for your first $1000. After that, you’ll probably looking at 1-2% cash back which is significantly lower. The $1000 is your balance threshold. If you pass it, you’ll get less rewards.
- Fees: don’t forget to check out the APRs and other Misc fees. Cash back cards are likely to have higher fees, so don’t plan to park balances on these cards.
- Form of Payment: you may also want to find out the form of rebate you will be getting at the end of each month. Some companies will literally send you checks while others will give you statement credit. I personally prefer the credit as it’s less of a hassle. Either way, it’s good to know how you will be getting your money back.
Always do your research before applying for a card. It is possible to earn a decent amount of money back if you go with multiple cash back cards, but you need to make sure you choose the right ones. Good luck!
Looking for a cashback credit card? Search our selection of cash rebate credit cards.
