Best Credit Card Choice Cash Back Card
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How To Take Advantage Of A Cash Back Card
It would be difficult to find someone, with the exception of the very young, who does not use a credit card of some type. In the US alone, there are over 300 million people who have more than 1 billion credit cards in their wallets. If you laid them out end-to-end they would wrap around the planet – twice! But not all of those cards work the same way. Some are for credit; some cash, others for rewards and an increasing number provide a discount in the form of a cash back card.
If you are going to use the card anyway, why not let the banks or card issuer give you the discount. After all, you are being charged interest if you don’t pay your bill by the due date, so why not allow for the return of some cash? Here are the advantages of using a cash back card.
Type of Purchase
If you routinely purchase gas for the car, or shop at certain stores, or frequent the same businesses, whether it be a favorite restaurant or hotel when traveling, you may want to consider a card that gives you a return on your purchase specifically for those merchants. Not every card works its magic at each business. Take a look at your spending habits and frequency and find one or two cards that can be used for those establishments. It is worth the effort.
Percentage Returned
How much you get back is the biggest advantage. Some cards return only 1% on very limited types of merchandise, while others pay back as much as 5%, but not on every purchase. Sorting out who does what is easy to do by setting up a quick schedule. The first step is to again list your buying habits and see where you are spending the most money and assign that merchant a specific card.
Same As Cash
For many years, business was not happy with the arrangements that the credit card companies used when paying merchant. Disputes were always sided with the customer, no matter how outrageous the claim. Payments to the merchants were slow, in some cases they waited for 6 weeks, and there was paperwork, which added to the cost. To overcome, businesses began offering a cash discount to the consumer for not using a credit card, a reward for paying in cash.
But the banks were just too powerful and overwhelmed their attempt at credit emancipation. The revolution collapsed when the banks began offering the cash back card. A consumer has the ease of use offered by using a credit card and gets the cash discount as well. It’s a smack down of the business owners but a boon to the consumer. If you don’t have to pay cash today, but wait until payday, to pay your credit card, you are using someone else’s money – and they are paying you to do it. Just make sure that you take advantage of every opportunity and pay the cash back card as soon as the bill arrives in your mailbox.