The Benefits Of Cash Back Credit Cards
By Eva Norlyk Smith, Ph.D.
May 22, 2009
It is said that there is no such thing as a free lunch, but cash back credit cards come pretty close to fitting the bill. These cards, which pay you a percentage rebate on the money you spend on the card, can earn you enough money during the course of a year to pay for a month’s worth of free lunches or even a weekend get-away for you and your family.
If you use a cash back credit card for most of your purchases and routine expenditures, you can accumulate several hundreds of dollars in savings over the course of a year. Not bad pay for doing nothing other than simply using your card.
A cash back credit card typically will offer a 5% cash back on purchases at supermarkets, drug stores, and gas stations and 1% on all other purchases. However, there are numerous variations on the specifics of these programs, so it pays off to do your homework to make sure you get the best possible card for your needs.
A cash back credit card is an option to consider only if you pay your credit card balance in full every month. If you keep a balance on your card, look instead for cards that offer the lowest interest rate.