How to Get the Most From Cashback Credit Cards

As with any credit card offer, including cashback credit cards, it is absolute imperative that the consumer carefully reviews all the features, benefits, terms and conditions that accompanies it. Far too often people simply gloss over these important facts because they’re only interested in the rewards, rebates or bonus points. That can be a very costly mistake.

Oftentimes credit cards will come with a low interest rate or 0% introductory offer in order to pick up new customers or lure cardholders away from their competitors. That’s all well and good, and we’re all for catching a good deal, but make sure to read the fine print to know exactly what the rates will be when the introductory offer expires.

I can’t even count how many times we hear from people that spend like Vikings because they’re not being charged interest only to suddenly be “surprised” when the intro offer ends and the interest rate charges begin. That’s just being irresponsible so don’t let that happen to you.

Cashback credit cards are in and of themselves a fantastic way to save money. Doesn’t it make sense to find the best cashback offer on the market and use it as often as you possibly can to save every time you shop? It surely does make sense but with one caveat… you must pay your bill in full each and every month.

While you most certainly can get up to 5% cash rebates on their everyday purchases such as groceries, gas and other merchandise, those savings will quickly be wiped out by the interest rates you will be paying if you end up carrying a balance from one billing cycle to the next.

That door swings both ways and the credit card issuers know that only too well and that is why they offer these incentives to begin with. Trust me when I tell you that the banks and financial institutions crunch the numbers constantly in order to to ensure that there’s more money coming in than going out.

When it comes to cashback credit cards their edge is the fact that the people that carry a balance will end up paying so much money on interest that it will far outstrip any money that they may be losing through their cash rebate programs.

And I would be remiss if I did not mention annual fees. We will now begin to see annual fees being assessed at a higher rate because credit card companies are scrambling to make up for lost profits. Be sure that any fees charged on the cards that you are interested in will be more than offset by the savings you will receive. Otherwise it just doesn’t make sense for you to use the card.

So there you have it. That’s how you get the most from cashback credit cards. They really are a good deal but only if they are used the right way. And as we have just learned, using them the right way means paying your balance in full every month. That’s how you beat the credit card companies at their own game.

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