Credit Card Rebates ? What They Mean to You

Posted by Nick Niesen on October 29th, 2010

With all the spending you do on a weekly basis, wouldn?t it be great to get some of that cash back at the end of the year? With credit card rebates, you can do just that. Rebate credit cards offer you a percentage of your money back. So when you spend with your credit card you can be earning money. This is a great way to add to your end of year savings or to earn a little extra money for holiday shopping expenses.

How Rebate Credit Cards Work

When you sign up for a rebate credit card, you are agreeing to use the card according to the credit card agreement. While all agreements are different, the rebate credit card agreement will detail how much you have to spend to earn money on your purchases.

Most cards offer up to five percent cash back on your purchases. So check for the details in the contract. You may earn different amounts at different places. For example, some cards offer five percent cash back rebate when you use your rebate credit card at a grocery store, gas station, or drugstore. These daily purchases add up quickly and it is easy to earn rebates this way.

However, your purchases at other stores may only earn you one percent of your purchase price in rebates.

Restrictions

Again, many cards only offer their premium percentage rates on purchases made at specific locations. In addition, there may be a limit on how much your can earn. Credit card rebates may be limited to three hundred dollars or less in one year. Once you hit this limit in rebates, you will no longer be earning cash back when you use your card.

You may also have to pay an annual fee to use the card. Weigh the cost of this against how much you think you will actually earn back in credit card rebates to see if it is worth it. If you pay a fee that is over fifty dollars and you only think you can earn seventy-five dollars in rebates, the card may not be worth your time.

Keep in mind that the interest rate also plays a part in how much money you get back. It is very important to always pay your rebate credit card bill in full each month. If you don?t, you will earn interest on the balance and pay the company much more than you get back at the end of the year.

Keeping Track of Rebates

Be sure that you keep track of your spending with these credit cards. Most companies offer an online service to let you see how much you have spent and how much you have earned. Take advantage of this service and stay on top of your monthly bills.

Tips to Earning More

Again, if your card offers a higher rate for spending at supermarkets, drugstores, or gas stations, use your card there primarily. You can also get the higher rate most of the time for purchasing merchant gift cards at the supermarket. So if you want to purchase something at a department store, buy a gift card at the supermarket to earn your higher rate and then shop with the gift card.