The Beauty of Cash Back Credit Cards
We can all use a little extra cash in our pockets, and cash back credit cards have managed to find a way to do that by letting you take advantage of something you would do anyway: spend money.
The great thing about cash back credit cards is that they make earning cash simple. It doesn’t take hard work. Instead, it is all about choosing the right card to suit your lifestyle and that pays you back for purchases you already make. So, when searching for a cash back credit card, look for one that will reward you for purchases you already routinely make. For example, while all cash back credit cards will pay you back a certain percentage for every purchase you make, most will pay back an even larger percentage for making purchases at certain types of stores. Depending on the card, these specific stores may range from gasoline convenience stores, to grocery stores, to home improvement stores.
After selecting a cash back credit card, be sure to make as many purchases as possible with the card – particularly purchases that earn a higher percentage pay back. If you pay your balance in full at the end of each billing cycle, you will avoid finance charges and discover that the credit card company actually pays you to use it!
Ways to Receive Cash from Your Cash Back Credit Card
Earning cash back from a credit card is a great deal. But, did you know that there are actually several different ways you can receive that money?
With some credit card companies, you will receive your total cash reward at a predetermined time of the year. With others, you will receive a check once you reach a certain cash value. Often times, this value is set at $20.
With some cash back credit cards, you won’t ever actually see the cash. Instead, the amount of cash you earn back will simply be credited to your account. Although you don’t get to choose how to spend this cash, it is quick and simple and helps reduce your credit card balance.
Yet other credit cards will send you a gift card in the amount that you earned back. While this is more restrictive than receiving a check, the value of the cash you get back is often higher when it is given to you in the form of a gift card.
Not all cash back credit cards are created equally. As such, they do not all pay you back in the same way. So, when shopping around for the card you want to carry in your wallet, be sure to find out how the money gets sent back to you and choose the one that suits your lifestyle and needs the best.