Cash Back Cards: How Much Can You Get?

Looking at all the cash back reward credit cards out there can be overwhelming. It is a relatively new strategy that the credit card companies are using to win your business. Competition is fierce among these companies, who all want to get ahead in the market share business. You can take advantage of this if you are smart and know how the system works.

There are so many offers available that it is hard to choose which one is best for you. The cash back offers are complex but can be very beneficial if you choose wisely. To make these offers work for you is very important. The very first rule is to pay off your balance every month to avoid paying interest charges. What good does it do you to get 1% cash back if you are paying 17% interest? So, if you can’t afford to pay your balance every month you might be better off using one with a 0% interest rate for the first 12 months and then move the balance to another 0% card before the 12 month time period is up.

Cash reward cards offer anywhere from 1% cash back to 6% cash back. For each different card there are different rules. Rules on what you can buy to get the rewards and the method of redemption. Most cards will give you a credit directly to your credit card account. There are other possibilities. Some cards will even send you a check if you make that request.

Rebates can be earned on almost everything you buy. If you play the game right you can actually end up using your credit card as a debit card and use it for everything you buy. Go to the grocery store, use your card. Go to the gas station, use your card. If you use your card for everything you buy but you can end up saving hundreds or even thousands of dollars a year.

The best way to do this is to use just one card. It can be very confusing and a hair pulling experience if you try to juggle several cards at the same time. Use the best card you can find and stick to that one. There should be almost nothing that you buy that is not put on the card.

Remember though, if you carry a balance you can end up being hurt. Let me repeat this because it is very important and a very common mistake. Pay your balance off at the end of the month or you are losing instead of gaining. If you are using your card for all your purchases, you should have enough money at the end of the month to pay the balance. If you think about it, it is really a very simple plan. Instead of cash, use your card. It is very rare that we, as consumers get the chance to stick it to the credit card companies. But, if played right, the benefits can be enormous. Remember, be smart.

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