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Learning About
Cash Back Credit Cards: Good or Bad Idea?
Getting a credit card that offers
cash back always sounds like a good idea.
What could be better than getting cash back
on all the purchases that you make with your
credit card? It sounds too good to be true,
doesn’t it?
Well, there are cards that give you free
cash, but it is usually only around 1% cash
back. However, free money is free money,
right? Well, sometimes.
If you like to buy a lot of things in one
month, this kind of credit card probably
sounds great to you. However, you need to
keep in mind that they are not going to give
you cash back on every purchase that you
make. Even if they claim to give you cash
back on every purchase, they will only give
you up to a certain amount per transaction.
The company also has a strict limit on the
amount that they will give back to their
customers. If you read the little, bitty
print on the form that you signed, you will
see a paragraph with their limits in the
terms and agreements.
This is another way to try to draw in new
customers for these companies. It is a good
credit card to have and sounds great in
theory, but they will have to check your
credit rating before they will give you
their card.
Research different credit card companies to
see what they are offering. You may be
surprised to find a cash back credit card
that offers you just what you need and want
with a high cash back percentage, few limits
on the amount they will give you back, and
instant cash deposits when you make each
purchase with their card.
Although these credit cards seem like a
great thing to have, some companies will
need your credit rating to be great too.
However, there are credit card companies
that offer these cards to people with a low
credit rating to help them rebuild their
credit. Research all of your options.
What should your decision be? If you have a
good credit rating, then this card is a
great option for you. Research different
card companies – there are cards out there
that offer you up to 3% cash back and impose
very few limits. If, however, you have a bad
credit rating, you may want to find a credit
card that will help you rebuild your credit.
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