I love when people online say that others have an agenda where we all are out to get you just to make a dollar on our end.  This couldn’t be further from the truth and I’ll tell you why.  When you apply for a credit card, you know what’s coming to you.  You can read the terms and conditions, look at all the disclosures, etc.  Do you know why?  It’s the law.

Cash back credit cards can really help you when it comes to every day spending.  The only way it won’t help you is when you don’t pay your credit card bills in full.  If you can’t pay your bills off in full, you’ll want to avoid reward cards all together.  These cards are designed for those who pay off in full because as you’re probably aware of, a card that’s paid off in full won’t see interest rate charges.

Cash back cards will give a lot back no matter how much you spend.  As you look at the cards on the market, you’ll realize that most of them are the same.  Here are some of the types you’ll see –

  • For every dollar you spend, you get a percentage back.
  • For every dollar you spend, you get points back.
  • For every dollar you spend, you get a statement credit.

Cash back cards aren’t always “cash back” cards.  In a way, they can be looked at that way.  Let’s use a points based card for example.  Let’s say it takes about 5,000 points to get a $50 gift card through a company.  If you spend $5,000, you’re going to get $50 back.  In the long haul, that’s less than a 1% back.  This is why you need to look at the formulas to see what benefits you.  Obviously, if a card is giving you 5% back, you’ll want to choose that card over the points based card.

Benefiting from a cash back card is really simple.  Pay in full on time and you’ll take full advantage of these cards.  If you’re disciplined enough, put all your bills on the card but make sure you know what’s going on there.  If you have $3,000 in total bills a month, think of how fast that can add up?  It’s a lot better than nothing.  No credit card companies are out there to get you.  All the information you need is there.  So, if you feel the card companies are going to rip you off, you’re wrong.  Be disciplined and know your budget and you’ll be taking full advantage of the cash back game.


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