Guidelines for Cash Back Credit Cards

There are various types of cash back credit cards and concluding which is the best suited card for you can be quite a brainteaser. They are usually available with an introductory offer on balance transfers and new purchases, with zero annual fees for first year and some will offer enhanced rates for select purchases – case in point, paying your restaurant bill with your card at specific restaurants.

On the other hand, if you have no outstanding balance on your present credit card, continually pay your credit bill on time and only ever eat at home, none of these benefits will be of any interest to you.

Consequently, it is always best to shop around to find the most suitable card for your requirements, as you may be giving up a higher rate for the cash back facility which you do not necessitate.

Guidelines:

  • Place the best card deals which reward you for using stores you already make use of.
  • Opt for the card which have no expiry period or limit for the amount of cash back you can be given. You may think this is trivial now, but your spending habits may alter.
  • Hold off from making additional purchases with the card simply to earn more cash back. Even at the highest rates of return, the cash you receive back will not validate the expense.
  • Compare the annual fees and interest rates being charged by suitable credit card companies before you apply. Doing the math may be tricky, but financially sensible.
  • If you are in business, pay as many suppliers as you can through your card. This will help with your cash liquidity, and also earn your company a significant income additionally.
  • Tap the benefit of any sign up bonus offered by the various companies. Some will offer enhanced percentages of cash back over an initial period or cash gifts as incentives.
  • Be aware that cash back credit cards often have a higher rate of APR. If you are not the type of person who pays their credit bill each month, cash back credit cards may not be up your alley.
  • When you subscribe to a new card, do not revoke your old credit card (specifically if it has no annual fee). Terminating credit cards may negatively affect your credit rating.
  • They can be used for buying goods at specified grocery stores, on flights with select airlines or for filling up your car with gas as well.

Source by Rama Krishna

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