Cash Back Credit Cards
Just about everyone needs a credit card from time to time. Most online purchases will only accept plastic transactions and you will often find the need for this type of payment for things like car rentals. Why not earn some money on your purchases. Cash back credit cards provide a great way for you to get a little something back from your transactions.
If you play your cash back credit cards right you can come out ahead in the game. This takes a lot of self-discipline and organization but you can really reap the benefits of some programs. I discovered the benefits of getting cash back credit cards a few years ago but I really didn’t understand how the whole thing works until now.
You can get an average of 2 to 5 percent back on your purchases with some of the cash back credit cards. However, if you are paying the same credit company 18 percent in interest each month the refund program really doesn’t do you any good. You have to make sure that you use your credit wisely.
Do I sound like your parents? Sorry but it is true. You can pay off your debt to the credit card each and every month. This way, you will not accrue interest on the account. This is the only way that you will actually get your 2 to 5 percent refund at the end of the year.
If you don’t pay it off on a monthly basis, you are not getting an actual refund on your purchases. You are just paying less interest than you would on a regular program. For example, you are still paying 18 percent interest every month. Getting 2 to 5 percent back is not saving you money on your initial purchase.
Nevertheless the cash back credit cards are usually a great deal if the regular interest rate isn’t too high. We love getting a refund every year but if we carry our balance from one month to the next on a consistent basis we may want to look into getting a low interest account rather than having cash back credit cards.
If this sounds complicated that is just because I’m not very good at explaining this sort of thing. As a rule of thumb, it is important to remember that paying off your debt in its entirety at the end of every month will save you money in the long run. Getting cash back credit cards are a good idea if you have the discipline to do this every month.