Cash back credit cards are a type of rewards cards with which you get a certain percentage of your money back if you purchase something. However, unlike rewards cards, which give you bonus points, cash back cards give you actual money back.
Sometimes it may be 5%, but usually, it is equal to 1%. If you want to get this type of a credit card for your own needs, click here to get more details about them and find out how and where to apply for it.
Tip 1. Set Up a Direct Debit
It is important to set up a debit to repay in full every month so that you do not have to pay the interests, which will minimize your gain. If you apply for full pay off, you will convert your credit card into a debit one, which will give you a certain amount of money back every time you spend it.
Tip 2. Use it for Everything
As soon as you get cash back credit card, use it for all of your purchases. It does not mean you have to spend more money, but every time you need to buy something, buy it with that credit card and forget about cash, cheques etc.
Tip 3. Sort Out Your Debts
It is more beneficial to keep your debts low rather than having a cashback credit card. Thus, make sure that your debts are sorted out before you apply for cashback cards, otherwise, you will not save any money.
Tip 4. Do not Withdraw Cashback
In case, you need to withdraw this money, you will most probably have to pay a fee and lose a part of your cash back.
Tip 5. Do not Apply for Cash back Credit Card if You Need Another Credit
If you plan to take a credit soon, it is better not to apply for cash back credit card, as taking too many credits harms your credit score, and, as a result, you will not get the credit, which you really need.
Tip 6. You Get Consumer Protection if You Have a Cashback Card
Consumer protection means that you have an opportunity to get your money back if you buy something, which costs anywhere between $100 and $30,000 if something goes wrong with the retailer. Note that this protection is available only for the owners of credit, but not debit cards.
Use these tips carefully and always be smart about how you treat your credit cards and debts. It is always wise to avoid troubles with banks in the long run.
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