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Wednesday, July 15, 2015

Cash Back Rewards Credit Cards

Cash back reward credit cards are a wonderful thing, if you use the credit card wisely. It is a great to earn points that can be redeemed for cash, travel vouchers or others types of merchandise just for using your credit card.

Not all credit cards give back, so be careful and do your research and read the fine print on the credit card application. The cards that do offer cash back do not all give back the same amount, each card offers different incentives when rewarding the purchaser.

Here are some guidelines for choosing the best rewards credit card for you.

Credit Score

Each card company will have different qualifications for their cards. Know your credit score and check with the card company to see what their average approved credit score is for their rewards card. If you have a medium or low credit score then most likely you will have a hard time getting approved for a rewards credit card.

High Cash Back Rewards

Not all rewards cards offer the same cash back. Some credit cards only offer 1 percent cash back on purchases, while other card companies will offer a higher cash back reward. Again do your research and try to get approved for one that offers higher cash back rewards.

Unlimited Cash Back

Again not all cards are the same even when it comes to the amount of cash back they will award you. Some companies put a cap on the amount of money they will reward you, while others have no cap on their cash back rewards.

Sign Up Bonus

Several of the rewards cards offer great bonuses if you spend $500 dollars within the first 90 days of having the rewards credit card. This is a great way to maximize the cash back benefits right in the beginning. Some card companies offer different types of promotions from time to time, check with your card company and see what types of promotions they offer.

Annual Fee’s

Check around, you should be able to find a rewards card that does not have an annual fee tied to it. Some cards may have an annual fee but the cash back rewards outweigh the annual fee being charged so in this case the fee is worth it.

Remember these rewards cards are credit cards, so if you want the best from the rewards then you need to pay off the balance every month so you don’t start acquiring interest. Having interest charges on these cards negates the cash back rewards, Another thing to remember is just because you are getting cash back rewards does not mean you can go out and overspend and ruin your budget. It can be tempting to overspend and purchase items you really don’t need. These cash back rewards cards are great if used responsibly and used sensibly.

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