People love getting paid for spending money. That’s the idea behind the growing popularity of a cash back credit card:
The more people spend responsibly, the more they receive back.
Cash Back Benefits
Most cash back card plans offer a multi-layered payment scheme. For example, for purchases up to $100, the card issuer might pay the card holder 0.5%. For purchases over $500, the plan might pay 2.5%.
The cash back plan might be anchored on the revolving balance instead. If a certain balance is maintained from month to month, the card holder could receive a portion of that back.
Read carefully the card use agreement and evaluate each tiered cash back offer. People who still have questions can call us, and we are happy to help clarify or define as needed. It’s better to ask than hope.
Interest Rates
Compare interest rates to find the lowest available and double the benefit for no additional interest accrual: That’s extraordinary financial management!
After identifying which tiered plans are most attractive, compare interest rates between them.
Final Decision
If the choice is still a difficult one, sit down with pen and paper and imagine what the card will most likely and most often purchase. It the card is for emergencies or larger amounts, the tiered plan may work, if the card holder can pay the balance off quickly.
If a longer-term payment is required, consider the lower interest rate.
If the card’s going to be used for routine purchases, either might suffice, and grabbing that interest free credit card that offers the cash back plan grants the best of both paths.
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