Cash Back Credit Cards - The Deal is in the Details By Ed Vegliante At Isnare.com Ezine Articles

Cash back credit cards: do they really work? The simple answer is yes; the longer answer is that in order to make the most of them, you'll have to pay attention to the details. If you can stay on top of your credit card payments, and use the card wisely, you will definitely benefit from a cash back credit card. The key is to look at the fine print. Here are some tips to help you get a good amount of cash back.

Check the Percentage Rates

When cash back cards first began, banks usually offered customers 1 percent back from the amount they spent. So if you spent $500, it seemed like you could expect to get $5 back. Many cardholders did not realize, however, that the full 1 percent usually did not start until a certain amount had been spent on the card. Many of these cards worked on a tiered basis, meaning that you would not actually receive the entire 1 percent cash back until you had piled a few thousand dollars on to the card.

Fast forward to today, and you'll still find that many credit cards operate on this system. If you read through the fine print, you can find out the limits involved before applying. You can also check for special deals. Some cards will give you 5 percent cash back every time you use the card at the grocery store, or for gas, or for online shopping. So make sure you know what you really will be getting back in cash before you sign up.

Look for Fees

Many cash back credit cards do not come with an annual fee. Even so, you'll want to check to see if there are any extra fees involved. Some of these cards come with a higher interest rate than most cards. If this is the case, check to see if you'll be paying off the balance each month. If you can pay off the balance each month, you'll greatly benefit from the card. If you can't, you might want to look for a low interest card instead.

Set up a System

Using a cash back credit card works best when you keep track of your purchases, make sure you get the highest percent of cash back possible, and pay off the balance each month. To add one more step to your benefit plan, think about what you want to spend your rewards on. Check each month to see how much money you have accumulated, and plan what you will use those rewards for. Then when you receive a rebate check, you'll know right where to put it.

For those that can carefully manage a credit card, the cash back system is a great find. It gives you all of the benefits of a regular card, and lets you get a little cash back at the same time. So if you apply for one, think about using the card, and the rewards that come from it, as best as you can. You'll find that the deal with cash back credit cards is really in the details.

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