Copyright 2006 www.Credit-Card-Surplus.comCash back credit cards are a big deal right now. Every
major credit card company is pushing them hard, and you can
stand to earn back a nice little chunk of change on your
purchases. Below are some suggestions on how you can take
advantage of these offers and get the most out of your cash
back credit card.
So What?s the Catch?
So the idea of getting paid to spend money is a little
counterintuitive, right? Most people think there is
probably some catch, or a slew of fees and pages of ?fine
print.? A few years ago that might have been true;
companies made these offers that were less than
straightforward. But as competition increased and the
concept gained momentum, these offers improved
dramatically. As a consequence they are usually pretty
straightforward, and not many will stick you with fees.
Pick a Card, Any Card?
If you are considering a cash back card you will need to
know about the different options in order to find the right
one. Many potential customers are either unsure or confused
on how these little guys work. There is no single
explanation, but because as the market has grown
competitive, companies have introduced new exciting
features. Here are the two basic ideas:
The General Cash Back Card - Your general cash back card is
pretty straightforward. It is probably best for the person
who has a broad and unpredictable spending pattern. Citi,
Discover, and Chase all offer very nice packages for
everyday spending. ?Every day items? can earn you up to 5%
back, where as other purchases will get you 1%. You will
typically get your cash back at the end of an established
cycle, or after you cross a value threshold.
Points Card ? Point cards are a little tweak on the
traditional cash back card. Purchases earn you points,
sometimes more points if you spend with specific vendors.
Amazon.com springs to mind, as does Overstock.com, and
Universal Entertainment. Many points cards are targeted on
specific purchases. Discover has a gas card, and the Chase
6 for 1 Flexible Rewards offers 6 points for every dollar
of gas, groceries and drug stores.
Tips for Maximizing Your Rewards
There are some very simple common-sense-tips to drive up
your cash back or point rewards. First and foremost,
determine your spending pattern. If you are swamped with
day-to-day household expenses you will definitely want to
find a card tailored to that situation. Determining the
nature of your spending habits can concentrate your rewards
from what you are doing most, because there is probably a
card that targets that market.
Make sure you read the fine print. Some points redemption
cards are restricted to specific kinds of purchases. For
instance, Blue by American Express limits your point
redemption to retail shopping deals and entertainment
packages. That?s great if it is up your alley, but look
into the details to make sure you are getting what you
expect.
Finally, create more opportunity to purchase. If you carry
a balance from month-to-month you are limiting how much you
can earn back from your card. If you have more capacity to
buy, you have more capacity to earn cash or points rewards.
Carrying a balance limits your available purchasing power.
Also, by paying your card?s balance each month, you will
see a credit line increase more quickly. This is the
cash-back jackpot. Upping your limit, as with paying your
balance, gives you more purchasing power, and thus more
rewards. Start that cycle early, and watch your rewards
pile up.
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To find Cash Back Credit Card Offers click
http://www.credit-card-surplus.com/cashback.php . Ed
Vegliante runs http://www.credit-card-surplus.com , a
directory enabling the consumer to compare and apply for
credit cards.
