Credit Cards with Cash Rebate Offers
What You Should Know

Credit cards with cash rebate rewards return cold hard cash to you for every purchase you make. When you make a purchase you'll get a credit to your account for the value of your purchase times the cash rebate rate of the card.

Once you reach a certain level on your rebate account you'll be able to redeem your rebated funds via check or some other method. All the major credit card companies offer a card like this, though plan details vary somewhat.

Most credit card users prefer getting cash back to any other incentive available. Yes, there are lots of cards out there that offer airline miles, products, or in-house spending accounts; still find most people prefer cash.

Not for Everyone

If you are a card holder with a strong credit rating and you spend big bucks on your card every month you can get some big rebate checks back from your credit card. Obviously, this type of card won't be part of any debt reduction plan or credit card debt solution for most people.

Generally speaking you'll find these types of cards have downsides too. They may have higher annual fees, higher than average interest rates, and sometimes more onerous terms should you make a late payment. Your monthly interest rate will vary according to your credit worthiness.

This type of card is really only suited for users who always payoff their balance monthly. Cash back cards, like nearly all credit cards, are a poor choice when it comes to carrying a balance forward. You'll get hammered with interest payments that instantly wipeout any cash back you may receive.

How Much Can You Make?

The amount of cash back you'll get on any credit cards with cash rebate rewards varies from card to card. My research showed that the best cards offered a 1% rebate on all purchases with possibility of more depending either on the monthly amount you spent or the type of purchase you made.

In some instances, should you spend several thousand dollars a month on your card you may be able to get up to between 3% and even as high as 5% back on certain purchases. For example, one card I reviewed would pay back up to 3% on all gasoline and grocery purchases after you reached a monthly spending amount of $6000. Now that is a bunch of money, but still some people in certain situations may be able to benefit.

Before you bank on anything check with the card issuer to see if your particular circumstances would in anyway limit your rebate. A small business man running a sole proprietorship might be able to make some serious bank depending on his business and whether the card company would allow all purchases. Make sure you review the details.

When Do You Get Your Money?

Before you decide on a particular card you should find out when you're cash rebate actually pays out. Generally you will need to reach a certain minimum amount in your account, a certain time interval must be reached, or a combination of both.

Should your card have a minimum payout of say $50 keep in mind you'll need to spend $5000 on purchases to reach that amount. Once you have reached the limit, some card companies will send you a check, others will deposit the reward into your bank account, and still others will simply add the reward to your credit card account.

You need to decide upfront which payment method you prefer and then make sure that is an option on whichever one of the credit cards with cash rebate back you select.

Don't Pay Late

If you do some real searching you should be able to find a number of credit cards with cash rebate offers that don't charge an annual fee and will allow just about any purchase to qualify for a rebate. The only real big issues to note for those who always payoff their monthly balance is the very onerous late payment clauses you'll find.

If you make a late payment, even once, expect to get whacked hard. You will likely see an immediate interest rate hike to something around 30%, which of course is comparable to loan shark rates, but is legal in the U.S.

The first thing to do should this happen to you is to call the credit card issuer and try to get the charges reversed and interest rate returned to normal. If you always pay on-time and in-full you should expect them to waive these fees the first time you make a late payment. If you do it a second time, well...you asked for it.

The Best Cards Require an Excellent Credit Score

To take full advantage of this type of card you'll need to have at least a good and more likely an excellent credit rating, a need to spend several thousand dollars per month, and the means to payoff the balance every month.

If you can't meet these types of means tests, then this type of card won't serve you in any usefulness way.

To come out a winner, do your research, and choose one of the many credit cards with cash rebate offers that fits your needs.

Before you fill out any application make sure you know the potential credit limit, any possible fees, and the interest rate range you can expect based on your credit worthiness. Following these tips will keep your debt reduction plan firmly on the right footing.