Cash Back Credit Cards

Money creation has been around for quite some time, and the economy actually relies on money creation like credit cards and loans. In fact, credit cards and loans actually stimulate the economy. If no one was able to get a loan for a new home purchase or a new car, the majority of houses would go unsold. Credit cards also affect the economy in the same manner, which ultimately means that debt equals money. Regardless of this fact, people rely on credit cards for a number of purposes like renting hotel rooms or renting a car.

Credit card companies will offer different reward programs to attract new customers. Reward programs like points, discounts and cash back are the typical rewards that credit card companies will offer. Cash back credit cards are probably the most well known reward program that credit card companies offer. Cash back rewards are given to credit card holders when they meet certain conditions that are found within the contract of the credit card. For example, some credit cards pay their customers $100 cash back when the customer used $500 of credit within 3 months of opening the account. Each credit card company will offer different amounts of cash back with different requirements as well.

Most cash back credit cards also have a low interest rate, depending on the account holder’s credit score. In order to receive a cash back credit card, the applicant must have an excellent credit score. There are few credit card companies that offer cash back credit cards to those who have a less than perfect credit score. Some cash back credit cards will give cash back to their customers in the form of a percentage of the customer’s purchases. For example, a person who uses $100 on their credit card that offers 2% cash back will receive $2 cash back and so forth.

Some cash back credit cards offer cash back only on certain types of purchases like gas and groceries. The advantage of using a cash back credit card on purchases like gas and groceries is obviously the savings in which the account holder will experience. If the account holder of a cash back credit card uses their card on cash back items frequently, they will end up saving significantly on their purchases. An intelligent strategy to consider when using cash back credit cards is balance transfers.

A lot of cash back credit cards will only offer a certain amount of cash back during a certain period of time. This time could be the first 6 months of transferring a balance from another credit card, depending on the credit card company. The intelligent part comes in when an account holder takes advantage of this time period to receive cash back, and then transferring their balance to another cash back credit card in order to take advantage of the new cash back time frame. On top of that, a lot of credit card companies will offer no balance transfer fees as well as no interest in the beginning of the new account.

Another strategy to consider when earning cash back with a cash back credit card is using the cash back to pay on the balance. In fact, many people will end up paying their balance off sooner if they use the cash back to pay on their credit card. Combine this strategy with balance transfers and you have a recipe of financial success when attempting to pay off a credit card debt. Applying for a cash back credit card is made simple by going online. Applicants should take the time to research cash back credit cards in order to compare rates between offers.