It is true that today one of the hottest things are cash back credits cards. The concept of cash back credit cards is no longer a new concept today. Indeed, the working of cash back credit cards is not a hard thing to understand. There is much simplicity in the logic. When you make use of a specific company’s credit card to purchase goods and services, you are offered money back.
The customer has much to benefit him form this arrangement. You can actually be spending less as a customer every time you make purchases. Continue reading so that you are able to make the most out of this arrangement.
As you look for the best cash back credit card, identify the one that gives you the most money back. Since the cash back is calculated in percentage, look for the card with the highest percentage. Although many cards give a 1% inventive, there is more to save when you use the card more frequently. Actually, there are some cards that will offer higher percentages when you make certain purchases like food and gas.
However, it is prudent to avoid using the cash back cards for all outlay. The cash back credit cards are best when used for the utility bills. These are bills that you pay every end of month like gas and other utilities.
It is prudent to wait until the invoice is due and then make a deposit of the money onto your bank. After this, payment can be done by using the cash back card. As soon as the card account comes, be prudent to use the money that you have saved to settle the credit card in its entirety. When you do this, it will be easy for you to get cash back and also you will not pay any interest.
Again, you will need to look at the fees before you settle for any cash back reward card. It is not wise to ignore the fact that there are fees to be paid when it comes to cash back credit cards. There are companies that offer low APR rates to the tune of 8.99% while others are as high as 18.99%, although the average AR rate is actually 14.99%. Due to this huge gap in the charges, it is best to look for the cad that offers least and meets your needs.
Again, there are other players in dictating the interest rates for the fees. Of great significance are factors like your credit score and credit rating as well. Another great determinant is your credit card company. There are also other fees for consideration. Other fees to consider are balance transfer fees. Everything needs to be considered before making a decision.