Cash-back reward cards offer good deals if offered by credit card companies who are true to their words. Some credit card companies say they offer 4% cash-back rebates, but consumers will later find out that as they stay longer in the company, their rewards rate decline. And for those with high cash-back rates, for about 5%, are commonly tied up with more restrictions. You will only get the rewards upon spending over a thousand dollars, quite a great amount to spend before being rewarded.
The APRs or annual percentage yields of cash-back credit cards tend to have higher rates than standard credit cards. They are even slightly higher than those regular credit cards with the highest APR. But if you choose your card wisely, you won’t be regretting paying higher rates since you are rewarded with sweet cash-back deals. Create a list of cash-back credit cards and do not just compare the rates. Try computing your rewards, meaning your expected spending multiplied to the cash back rewards rate, then compare. If possible, shop around for more in credit cards comparison sites to have a better or summarized view of the benefits of the cards.
You also need to read the terms and conditions that apply. Look for term changes. Some credit card companies reduce the grace period days without prior notice. When consumers complain, the companies will claim that they reserve the right to change terms and the customers have agreed to that to begin with. Too late for customers to realize that the reduction was indeed printed in the “page with tiny words”.
Make sure that you get your rebates on the specified time your credit company has promised. Some companies don’t inform or remind their customers at all, leaving the customers unaware that they can get a deal of rewards with their cards right now.
As a customer, it is your duty to read the fine print how boring they may be. Yes, those words are long and technical, but with enough self-taught credit terms lessons, you will be able to see the light of these words and you would already be ready for future changes in the company. Remember that card issuers always include a text about their right to change the cash-back agreement at any time. Learn to be aware at every change affecting your credit. Don’t let yourself be one of the people who end up being shocked upon receiving their credit bills and complaining that they didn’t know the term changes.