Wednesday, August 15, 2012

What Are Cash Rebates?

Cash rebates are a favorite type of reward. Many consumers are easily enticed by the line "Spend more to earn more." Credit cards that offer cash back or cash rebates let you earn a percentage each time you purchase against your credit. Most cards give you points or miles which you need to convert first to use them. Cash back is different since they are in the form of spendable dollars. Discover® was the first company to implement this offer and soon enough, other credit card companies followed suit.

How to Earn Cash Rebates

The process is actually very simple. All you need to do is use your credit card on purchases. It is similar to carrying a discount card around except that you don't get the discount on the spot. Often, companies will give you your cash back at the end of the month. The complex part is finding out how much percentage you get on each purchase. Thankfully, creditors have made it easier for consumers to compute their cash rebates by grouping the purchases together.

For instance, the amount of percentage you get from conventional purchases such as groceries, medicine, and gas is all the same. All other purchases entitle you to smaller rebates. However, if you purchase from their partner merchants, you can get really huge rebates. If your creditor has an online shopping website, you might want to shop there using your credit card. This is because they can give you 10% to 20% or even more for each purchase you make.

How to Qualify

First of all, you need a credit card that allows you to earn cash rewards. The catch is that most creditors will only approve applicants that have excellent credit. Even those that have good credit can be turned down. Aside from your credit score, they may also take a look at your employment status or your current income. There is often an income requirement since most of the credit cards that offer cash rebates come with high annual percentage rates, interest rates, and other charges. You should also be aware that you have to pay all your bills in full to avoid paying the high monthly interest fees.

Cash Rebates Tips

It is noticeable that the card offers are slightly different from one another. You can find cards that give you rebates each time you purchase on a particular category. You can sign up for each category every quarter of the year to qualify for the rebate. Other financial organizations will give their consumers a flat rate, which they need to earn throughout the year.

If you wish to gain more rewards, you may need more than a single card. With more cards, it would be easier to rack up on your total percentage. Additionally, using two or more rebates credit cards gets your more discounts on not just one type of purchase. Each card has unique privileges when it comes to cash back rewards.

Instead of using debit or even hard cash to pay for your purchases, use your credit card with cash rebates to get huge savings in the long run. Be sure to pay your dues on time, though, to avoid penalty fees and getting into debt.

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