As homeowners are trying harder than ever to pay down debt and save, it looks like one credit card issuer wants to help out in the best way it knows how. That issuer is Wells Fargo, and it was recently announced that they will be expanding its Wells Fargo Cash Back Card program to give cardholders the ability to pay on their home equity loan principal by simply using their credit card.

So how does it work? Under this program all eligible purchases made with either the cash back card or Wells Fargo Home Rebate Card earns cardholders a 1 percent rebate which goes toward the mortgage’s principal. This rebate is then applied in $25 increments and has no cap on the amount of rebates cardholders can earn.

For Wells Fargo, cardholders using rewards they have accrued to go toward their principal on their home mortgage loan is nothing new. In fact since 2007, when their Home Rebate Card was first introduced, more than $10 million has been applied to home loans. This recent expansion however is something new as they look to capitalize on the growing amount of cardholders who now have home equity lines of credit, which have skyrocketed due to historically low interest rates. 

What is your opinion on a credit card that puts cash back earned toward your mortgage?

From something that started off very slowly, virtual coupons are now trying to find their way in to every Americans’ pocket book. In recent news, an Atlanta based company called Cardlytics has teamed with a couple of banks to offer their consumers a way to save money before they even use their card. These coupons can be used both in a store or when a cardholder shops online.

So how do "virtual coupons" work? With virtual coupons, merchants place rewards and discounts where cardholders can view them once they log-in to view online bank statements. Once a cardholder chooses which coupons they want loaded on their card, they can go and shop. These discounts will be deducted when the consumer uses the card to make the payment.

So why are virtual coupons such a big deal? In my opinion, this is a win-win situation for all parties involved. For consumers, you will start receiving discounts on the places you shop most, and don’t have to go looking for coupons or discounts. For banks, it offers a cost free rewards program to their cardholders as merchants pay fees to put their coupons in front of potential buyers. For merchants, it is a way to stay in front of competition as consumers migrate toward saving money in every aspect of their lives. It also gives them a way to track consumer spending to create relevant rewards and target different user groups.

According to a recent article on Bankrate.com titled "Credit Card Rewards Help Foil Recession", it seems that the economic downturn is not only changing credit card reward programs but also the way that Americans collect and redeem the rewards. From this article it shows consumers are migrating to cash back rewards more than other type of rewards credit card due to the fact cash back can help struggling consumers make ends meet.

To many consumers and experts, cash back rewards on credit cards offer the most value and are typically the best type of rewards if looking to get a new credit card. As cardholders collect points for every dollar spent, they can redeem those points for gift certificates to specific retailers, grocery stores, restaurants, gas stations, and more. These are rewards that consumers tend to use more often because they normally go to these places anyway.

In my opinion, consumers that switch to cash back credit cards especially during times such as these are making a wise decision. Since many people are using credit cards for purchases that they make everyday, such as groceries, gasoline, and utilities it seems smart to get cash back whenever possible. The cardholder however must be smart about their purchase and make only those they are able to pay off at the end of the month. If not, the interest accumulated will not only negate any cash back possibilities but it could potentially cost you in the long term.