Cash Back Credit Cards - Deal Or No Deal?

Everyone knows you can spend a lot of money if you use your credit card too much, but there are some credit cards that can make you money as well. They are called cash back credit cards and they are offered by the credit card companies as an incentive to get people to take out and to use their credit cards. Of course the credit card company is hoping that they will make this cash back from their fees to the retailer and on the interest that you pay on the balance. But if you are careful about paying off your balance as quickly as possible then they can be a really good deal.

Some companies can offer as much as 5% cash back for anything that you pay for with your credit card. But you need to make sure that this is not just for certain types of purchases. One company was even offering 10% cash back for purchases on their card but it is more likely that you will find offers of around 1-5%. Not all of the companies pay the cash back in the same way. Some companies only pay twice a year or when your total reaches a limit that is set by them.
If you find a company that offers cash back on credit card purchases then it might be worth using your credit card to pay for things that you would not usually use it for, such as paying household bills. However, you need to make sure if you are using it more than usual that you pay off the balance immediately so that you do not forget and incur interest payments that might well cost more than the cash back that you made.

Cash back credit cards are a great way to cut the costs that you incur on your credit cards, but you have to make sure that you can use them intelligently in order to get the real benefit from them. If you are not able to pay off your card each month then it is possible that the interest will make it a bad deal for you and that there will not be any realized benefit or gain from the offered cash back incentive.

Of course, if you can pay it off each month then these cards can be a great way to cut the cost of your spending. Remember, be sure to look around carefully before you apply for your card so that you get the best deal.