Cash rebate credit cards, also known as cash back credit cards, are cards that give you a cash rebate when you use them for purchases. They are ideal cards for individuals that don't carry a balance from month to month. You essentially get paid to make charges.
About Cash Rebate Credit Cards
It is common for individuals to learn about cash back cards only when a lender sends them an application or offer for a program. From the outside, all of these cards look similar to each other. However, this is misleading. Numerous programs exist, each with their own terms and policies. To get the most out of these programs, compare various credit card offers to each other to find out which benefits you most.
Discover was the first credit card issuer that offered customers cash back rebates. It gave consumers one percent cash back on purchases. The program worked well for the company. Today, Discover is still one of the most frequently thought of companies when it comes to cash back programs.
Tiered Spending Considerations
Many companies use a tiered approach for their cash back card. This means that the rate of cash back is dependent on the amount of money the individual spends using that credit card. When you notice advertising for these programs, keep in mind that the percent cash back mentioned is often the one associated with the top tier of spending. Read the fine print to see the specifics.
Those who spend in the base tier level, charging the least amount of money,earn, for example, between .25 percent and .50 percent back. Those in the next tier up may spend twice as much and earn .50 percent to .75 percent in cash back. The cash back rate would increase marginally for each tier, up to the highest one, for those who spend the most.
Cash Back Card Comparisons
There is no better way to understand the rewards and benefits of cash rebate credit cards than to compare several cards to each other. Individuals who are looking for a new credit card will want to visit the websites of these companies to learn about the current offers available. The credit card offers and terms listed here are accurate as of August 2010.
Chase: Chase offers the Freedom Visa credit card. Individuals will receive a sizable amount of cash back bonus cash after spending $799. The company offers five percent cash back in bonuses for purchases in department and home improvement stores and for gas purchases. Individuals can earn an unlimited amount of one percent cash back on all other purchases. There are no spending tiers.
Discover: Discover offers the Open Road Card to consumers. This card offers two percent cash back to consumers who use the card at gas stations and at restaurants. In addition, between five and 20 percent cash back is given on purchases made through the company's online shopping site. In addition, consumers can earn up to one percent cash back on all other purchases.
Capital One: The No Hassle Cash Rewards program is one of the most straightforward cash back offers. Individuals earn two percent cash back on purchases at gas stations and grocery stores. In addition, one percent cash back is granted for all other purchases. There is no limit and no expiration of benefits. The card also has no annual fee and a zero percent APR introductory offer.
This is just a small sampling of the options available to consumers who are looking for cash rebate credit cards. Most credit card companies offer these lines of credit to qualified individuals. Good credit history is often a requirement.