This holiday shopping season, why not get something back from all of the money that you spend on others? If you have a cash back credit card, you may be able to do just that. A cash back credit card is one that is set up as a reward program. Simply, you will make purchases and, as long as your account is in good standing, you earn something in return for doing so. It sounds easy and it can be a great way to save a bit more for yourself during the rush of the holidays.
Is Cash Back Okay?
Before you race out to apply for a new cash back credit card, you should take into consideration a bit more about them, first. That is, you need to know if this is the right type of credit card for your needs. Cash back cards often do cost a bit more in the interest rate department. But, if you are someone that always pays off his or her credit card each month, you can see how a cash back program would be a great benefit. If you carry a balance, compare the interest rate of the reward card with the interest rates you are currently paying. If it is far higher, it may not be a good decision even with the reward attached to it.
Most cash back credit cards actually donâ€™t have annual fees or membership fees, but that doesnâ€™t mean that they all donâ€™t. If you are selecting the right credit card for you, look for one that doesnâ€™t require any extra fees, as this cuts into the reward that youâ€™ll get back. Some of the more elite and harder to get cash back credit cards due charge some type of annual fee to be part of the membership, but these tend to cater to their customerâ€™s needs, in other ways.
Compare To Save
One of the most important things youâ€™ll have to do to get the most money back this holiday season is to do your homework. Researching the available cash back credit cards on the market will definitely help you to find benefits and not so many pitfalls. If you donâ€™t spend some time learning about the options out there, how will you know that youâ€™re getting the most for your money?
There are several considerations to think about when looking at cash reward credit cards.
- Find out how much you earn back. Many will offer 1% of your purchases back to you in cash back rewards, while others will offer more or less.
- Determine if there is a limit to how much you can earn per year in cash back. If so, and you plan to spend more, look for a credit line that offers a higher or more flexible annual cap.
- Learn what counts towards your cash back rewards. Do cash advanced count? How about balance transfers? This can help you to decide which the best card for your particular needs is.
- Do you qualify for the credit card without your spouse? If so, and there are caps on the credit cards that you do qualify for, you may be able to both have an account to get more bang for your dollar.
- Does it offer any other benefits? For some, a cash back program is all that they need. But for others, there is more to consider including those that offer discounts, gift certifications and even benefits from your favorite merchants. If this works for you, consider it a perk.
- How long do you have before your cash back rewards expire? If you have excellent credit, you may qualify for those cards that offer no expiration of points at all. For others, youâ€™ll need to keep track of when you have to use your points.
- Determine just what you can use your accumulated points on. Some credit lines are quite limited in what you can do. Others will charge fees for some choices. You need to know that what you are working hard to earn is something that you can actually benefit from.
When it all comes down to it, this holiday season you can really be benefiting if you spend some time finding the bets cash back credit card for your spending. Why not get something back?