Are Cash Rebate Credit Cards the Choice for You?
When Cash Rebate Credit Cards Make Sense and When They Don’t
Now that more and more credit card companies are offering cash rebate credit cards, it seems that everyone wants one. After all, who wouldn’t want to get cash rebate on everything they charge to their credit card? If they charged their cash-back credit cards for each and every purchase they made, it’d be like getting everything on sale all the time. But are these cash rebate credit cards as good as they look on the surface, or are there other things you should consider?
The Whys and the Why Nots
Cash rebate credit cards are indeed a dream come true for a huge number of credit card holders. Getting money back for every purchase made is definitely a great perk. But what happens if you have to pay more for the credit card than what the card’s actually saving you? It would turn out that the cash rebate credit card wasn’t such a good deal in the end, wouldn’t it? For some credit card holders, cash rebate credit cards aren’t as wonderful as they first appear to be.
Cash rebate credit cards tend to carry a higher interest rate than other credit cards available on the market. That’s why the only people who really should use cash rebate credit cards are the people who pay their balances each and every month. If you tend to carry a balance on your credit card, then you should probably forego the cash rebate credit cards and opt for low interest credit cards instead – otherwise the cash rebate you receive from the credit card may very likely be less than the excess interest you end up paying.
Now don’t get me wrong – I’m not saying cash rebate credit cards are a bad thing. Let me reiterate that I think cash rebate credit cards are absolutely wonderful for those who don’t carry a balance on them. It’s just a matter of evaluating what your spending habits are and determining which credit card is right for you.
If you’re someone who pays your credit card balance off each and every month, you probably want to apply for one of the cash rebate credit cards available at this site.
However, if you’re someone who tends to carry a balance you should probably opt for one of the low APR interest credit cards available here.
Comments
We use our AAA credit card, which offers a 5% rebate on
gas which is taken right off your invoice the next month!
No need to add up points or apply, then wait for a check in the mail. It's from MBNA.
Check it out at:
http://ww1.aaa.com/AAA_Travel/CreditCard/aaa_credit_card.htm
For 7.75% LOW INTEREST RATES, try Jupiter Bank:
http://www.juniper.com/app/ccsite/help/helpfaqDynamic.jsp#basics
For 7.9% LOW RATES, try
National City Bank:
http://www.nationalcity.com/personal/
Posted by: Bill Russell | June 28, 2006 6:15 PM
I think the cash rebate cards are the best if you use them wisely. Always pay them off in full each month and get that money back in the rebate! Put the rebate in a high-yield interest rate savings account and let you money make money for you. It's an easy way to win the game.
I am glad to offer referrals to Citibank Dividend Platinum Card. You get 5% rebate back for gas, grocery store and drugstore purchases, earn 1% for all other purchases. Once $50 in rebates is earned contact card issuer for rebate. Max $300 in rebates per year. If you have a credit limit of $1500 or more they give you a $5 rebate credit. FYI - when I got my card they sent it with only a $1300 limit. I called the company before I activated the card and got the limit increased to get the credit. At current gas prices it should not take long for you to get your first rebate check.
I can also offer referrals to ING DIRECT savings account. They give $25 for opening the account with an initial deposit of $250. Once you open the account you can make referrals and get $10 for each one that opens an account.
Please send referral requests to mio008@msn.com by July 10th.
Posted by: JP | June 29, 2006 1:29 AM