The Ups and Downs of a Cash Back Credit Card

You see the most obvious reward to have is a cash back credit card, then there is not grey area that you have so many points but cannot use your air miles or that your gift certificate can only be redeemed at a specific store. So Cash back is always king in my eyes anyway. Forget the points and air miles I mean it. If you can spend earn cash back and actually decrease you payment to the credit card at the end of each month what a pleasure. But sadly not many credit cards offer that choice. They would rather send you a check but all the trouble in the end of clearing a check would not stop me from getting and using my cash back credit card.

Another way that Cash Back credit card is king is for the simple reason is that it is simple. How can the credit card companies make it more confusing they can’t. I mean it they can do it with air miles only limiting you when you can fly or you have to reach a certain number of points before you can fly. So they have the power to change it to suite them, but with cash it is simple spend money on the card and earn 5% cash back. Ok the only catch that there might be is that they only limit it to certain purchases. But at least you will know this before you make a purchase. They tell you 5% on all your gas purchases but only 1% on your drug store and groceries purchases. So at least you know that not like air miles where the rules will change from time to time and unknown to you. There is another catch I have seen credit card companies use now with the cash back credit card, and that is they limit the 5% cash back reward to a certain period like 3 months or a year. So be on the lookout for those credit cards, if you are not sure ask the question until you get the answer you want. They tend to tell you in an advert that they offer you 5% cash back, just be careful because it might be the credit card that is the top of all the credit cards they are offering. They tend to put a higher APR% on these type of cards otherwise you know the credit card company does not make any money, shame poor them. Then the one benefit that kills me and I do not understand why they limit it, but they do for instance you can only claim $2,000 per year for example and if you reached that in 6 months well unlucky for you. The rest of the year the credit card company smiles and you don’t.

Ok enough doom and gloom, let me give you some tips on how to get the most of your Cash Back Credit Card. Why not put your household expenses on your cash back credit card like cable,phone,electricity. Remember to choose a cash back credit card that you are going to make use of, like maybe your favourite clothing shop and the gas station you use a lot. Have your wife on a secondary card so that you can maximised the cash back reward when both of you spend.