The money-back option being offered by many credit card companies nowadays sounds so good to be true. It appeals to the average consumers who want to get some of their money back every time they swipe their cards. Thanks to the cash rewards card, this is all made possible. Each time you purchase on credit, you get a certain percentage of cash rewards.

Cash rewards card truly changed the way people see credit cards. In the past, people choose credit cards based on interest rates alone. The lower the interest rate, the better. When rewards cards were introduced, people started choosing based on the type of rewards they most need. It could be points they could use to get discounts in airline tickets or gas. But now, credit cards just got even better by offering cash returns.

Although many other rewards cards are also popular, some consumers find this limiting in a way that they can only get specific discounts depending on the type of card. If it is an air miles card, they can only get discounts on airline ticket purchases. If it is a gas rewards card, they can only use the points accumulated to get discounts on gas purchases. With cash rewards card, the money rebates received are savings that consumers may use at their liberty.

Credit card companies offer this type of card in their continued efforts to stay competitive in the business. To find out which companies are offering cash rewards on their cards, you can browse websites and look under the different types of cards they offer. Cash rebate rates vary depending on the company. The usual rate is from 1% to 3%. So if a card offers 1% cash rebate, for every credit purchase, you get back 1% of the total amount.

However, consumers should also take note that cash rewards card is not all that glittery upon closer inspection. If one looks at the annual percentage rate (APR) of such cards, it is much higher than other cards offering no rewards at all. Some cards offering cash rebates may offer zero interest APR but a customer should first read carefully the terms and conditions about his credit purchases that will incur interest. It is possible that his cash reward may turn out to be less than what he paid for the interest that accrued.

Credit cards offering cash in return for purchases really sound very appealing. But consumers should remember to be very inquisitive and learn everything about it first to be sure that this type of card is really perfect for them.

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