(c) Copyright Resume Corner, Inc. DontSpendMore.com. All rights reserved.
Cashback vs Rewards - Which is Better?
DontSpendMore.com offers a FREE Credit Card Finder to make your task easy
Due to intensed competition, nowadays, nearly every major credit card issuing bank is literally paying customers to take a card from them. Banks offer a credit card which gives you bonuses for using their card. Along with these incentives, customers may get an immediate satisfaction with buy now-pay later cards.Get a great credit card with 0% interest at DontSpendMore.com
Click here to compare and save on credit cards. Low APR and 0% APR credit card offers from multiple providers. Click here to save now. |
People may get gift cards, cash back cards, or reward points, and they can spend them to buy products or services from various dealers. These credit cards can also be used for charity purposes, for special savings. This is a great deal for customers.
Compare credit cards online at DontSpendMore.com
* This online application is subject to the terms and conditions as described in the Important Information Section of the application. |
||||||||||||||||||||||||||||||||||||||||||||||||
Cash Back Credit Cards
Cashback credit cards return money to users normally between one or twenty percent on all purchases. The money is returned in different forms, including check, direct deposit in the user’s bank account, or discounts on selected products.Credit card companies may also offer deals in the form of higher cash back percentages on purchases at different item stores, such as drug stores, gas stations, and grocery stores. Cash card companies offer you the opportunity to make use of cash back credit cards at any locations you want.
Some companies even allow you to roll your cash back earnings into your savings or checking accounts. You can also read our article on Killer Tips to Make Money with Credit Cards that Earn Cash Back.
Consider the following example to understand the value of credit card cashback offers:
Let’s say a person belongs to a family of four members having two cars. They spend $900 a month, collectively, at grocery stores, drug stores, and gas stations. If he pays for these expenses using a credit card instead of cash, he will get 5 percent cash back which equals to $45. In addition, he uses his card for other expenses of $500 on which he will get 1 percent equal to $5. Means he will get $50 per month as cash back, and $600 per year. This could be a beneficial strategy to add direct savings to your monthly income. There is a caveat, however. The lure of cashback credit cards could prove beneficial only if you repay your purchases in full each month. If you carry a balance forward, interest rates may cost you more than you earn in the form of cash back rewards.
Rewards Credit Cards
Rewards credit cards offer rewards as bonus points that are used as gift certificates at top stores. Some offer you rewards as frequent flyer miles used on any airline. And some cards also offer you a bonus when the card is used for the first time. Reward points have higher value and such offers are more easily available as compared to the cash back. They can be used for cash rewards in some situations. But reward points can only be used at particular sellers or on particular products. Furthermore, the chances to earn points with reward credit cards are limited in comparison with cash back credit cards.
How to Maximize Your Card Usage
In order to avail of key advantages of such cards begins, select the one that best suits your normal purchasing habits. Check online credit card offers and find the offer that perfectly fits your lifestyle. The 5% cash back cards are best for someone who has a large family. On the other hand, if someone travels often, then frequent flier miles credit card maybe a more suitable option. So, in order to increase your returns, you need to maximize the card usage by using it everywhere you can. Also try to pay your regular bills using such cards.
See also our articles on What you need to apply for a credit card? and Comparing credit card offers.
| Thank you for visiting us. Do consider visiting DontSpendMore.com to compare and save on credit cards, cell phones, loans, long distance, mortgages, Internet access, and more. |
Click here to find out how to save money on credit cards
Compare and save on credit cards, cell phone, long distance, Internet access, mortgages, insurance, and more at www.dontspendmore.com
Home Contact Us Partners Tell A Friend Privacy Policy About Us Terms of Service