It is so nice to hear that a credit cards will give you cash back rewards. Have you wondered why and how it works? Well, credit cards are also a business and in every business, they use some strategies to gain consumers. Before jumping into decision to have a credit card such as this cash back rewards credit card, one should have some ideas on how it works and how to compute or calculate the percentage cash back on a rewards credit card. Most of this type of card, the cash back rewards have higher interest rates and some even add some fees where in you don't know what you are paying for. It is more advantageous if you know how this type of card works.
Many issuers will not make it easy to know the cash back percentage you are getting when you trade points for rewards. Remember that getting rewards; you can earn back some money for your everyday purchases although all rewards cards are not created equal where in that depends on the companies. Having the best rewards depends how much money you spend each year through your card. Using your credit cards as often as you like and watching your cash back rewards get bigger and bigger. So nice to see and hear, but try to think if you can pay your credit cards on time on due date. The minimum payment you pay monthly only goes to your interest and the capital where still there which you need to pay on the expiry date. So always be aware of it so you will not be drowning with debt. Some tips on how to calculate the percentage cash back on rewards credit cards:
Find out the which things earn you points, since not all you purchases may qualify. This is how it works; in every dollar you spend you might receive a number of rewards points. Make list of that. Write down the points or rewards per dollar spent. For instance, if you have 10 points for every dollar you spend, make a list on that.
See the points for reward or reward amount or let us say rewards equivalent. Write that also in order for you to calculate the cash back rewards. Example you got 9000 points and when you turn in the points, you received $50.
To calculate, the points reward to percentage, this is how it works. 9000 divided by 10 is 900. So you have to spend $900 dollars in order to get the 9000 reward points.
And how much is the percentage, this is how to calculate, $50 divide by $900 would be % cash back.
There is no best card that is best for everyone since different cards benefit, different spending habits. In short, it depends on the cardholders how they spend. Remember that no matter what the advertisement says regarding their cards, you are still spending to save. Do not be enticed by bonuses and avoid taking cash advances as a way that you can rack up extra rewards points or you may be end with big debts.
You can find out more about cash back rewards credit cards by visiting the right websites. You'll want to make sure to read reviews and compare the cash rebate credit card percentage between cards.
Click on the links above to learn more.
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