Cash Back Credit Card - Appeals to ManyPosted by Nick Niesen on October 29th, 2010 One of the most popular credit card reward programs available today is the cash back credit card. These will give you a cash rebate every time you make a purchase. The best cash back credit cards appeal to many and would even include no annual fees and a 0% interest APR for up to 15 months. Imagine taking an instant discount every time you make a purchase on your cash back credit cards. Depending on where you shop, those savings could add up to a considerable sum. Cash Back The most basic benefit from a cash back credit card is your rebate from every purchase. Most companies give a 1% rebate on all purchases. However, some programs will give up to a 5% rebate on such purchases as groceries, drug store purchases, and especially gasoline. You have to spend these amounts of money anyway, so why not get a rebate for it? However, there are savings beyond what we have mentioned here. Savings Here is an example. Let?s say that, over a month, you spend $500 at the grocery store, $100 at the pharmacy, and $150 filling up your car with gas. Your total spending during this month would be $750. If you get 5% back for these sorts of purchases from your best cash back credit card, you can save $37.50. If you had to spend this much every month, you would have saved $450. In other words, you?ve saved half of one month?s expenses over the course of an entire year, and just because you chose to benefit from a cash back credit card. $450 is pretty cool?.but should I really switch? You would not be able to notice the slight difference of 1% or even a 5% on your cash back credit card; but over a period, your cash back credit cards could actually make you money? increasing your nest egg incrementally. In a way, every time you buy groceries, you are putting money into your savings. If you can pay your balance off every month, and do not need a zero or low interest rate card, cash back credit cards can work for you. Your cash back would even cover your interest payments ? let the poor money managers pay you. If you do not pay your balance off, your rebate can go toward paying down your existing balance, so that less of that has to come out of your own pocket. Make sure that you read the fine printings, because fees for late payment and going over the limit could be steep. The first cash back credit card was issued about 15 years ago. The program was very simple ? 1% of your purchases were rebated back to the customer at the end of each year of membership by check, or by a credit to the account. Like it? Share it!More by this author |