A cash back credit card provides discounts on purchases made through the card. Transactions involving these cards entitles the consumer to save a small percentage of the amount spent. In certain cases the rewards may be in the form of redeemable points.
A low interest cash back credit card offers special programs and discounts. It is usually limited to consumers with an excellent or at least a good credit rating. Cash back credit cards come with an introductory zero interest period. This is the most profitable time to utilize the card.
The Best Cash Back Reward Credit Cards
The Discover More Card offers one of the highest cashback bonuses in this segment. Transactions in categories like travel, home improvement stores, department stores, gas, restaurants and pet stores are entitled to a 5% cashback refund. All other purchases elicit a cashback not exceeding 1%. The exclusive online shopping site of the Discover More Card gives a cashback bonus ranging between 5 – 20%.
High Bonus Points From Citi Forward
Some credit cards provide reward points instead of a cash back scheme. Each purchase charged on the card earns a certain number of points depending on the amount spent. These points are redeemable for goods and services.
The Citi Forward Card is particularly liberal when it comes to handing out reward points. Spending $250 in purchases within 3 months of opening the account entitles the cardholder to 6000 points. Opting for paperless statements provides another 5000 points provided that this facility is activated within the first 3 months. Every dollar spent on dining, books, movies and music accrues 5 points. Every other purchase yields one point per dollar.
Cash Back Reward Program For Frequent Flyers
For frequent travelers, the Miles by Discover Card is a mileage credit card. A consumer can earn up to 12,000 bonus miles in the first year. Expenditure incurred on travel, restaurants and purchases on the exclusive online shopping site of the card procure double miles. These miles can be redeemed for travel, gift cards and even cash.
Cash back credit cards offer an interesting array of schemes custom designed for different demographic bases. Redeemable points can be exchanged for free products, services or travel. Most companies limit the validity period of reward points. Card inactivity for a specific time period can also result in cancellation of the points.
Credit Card Precautions
Cash back credit cards are best suited for responsible cardholders who are capable of completely repaying their balances on time. Frivolous expenditure with the sole aim of procuring rewards frequently results in insurmountable debt.
If the consumer is incapable of paying the full bill within a reasonable time period then they should adopt a non-rewards credit card with a low interest rate. However, a little resourcefulness on the part of the customer can guarantee the best deals on a cash back credit card.
Rahul Dutta Gupta - Rahul Dutta Gupta graduated with High Honors in English Literature from St. Stephens College, Delhi University and then pursued a dual ...
