Until recently students only qualified for the most basic credit cards. Even those were accompanied by a high interest rate. Due to tough competition among the credit card companies, students were gradually offered better credit cards. These days students can even get the most rewarding card – a student cash back credit card.
While a young person is away at college or university, budgets are often rather limited and saving extra money can help a lot. Although most student cash back credit cards only offer 1% cashback, that can still add up to a lot through the school year. With the high cost of post secondary schooling, every bit helps.
Some people may think students are too irresponsible to have their own credit card. This may be the case for some students, but it is most often due to a lack of education and guidance. So if you are the parent of a college student, make a point of teaching them about proper credit card management. They just have to understand that a credit card should only be used when you can afford to pay it off or in the case of an emergency. Then encourage them to apply for a student cash back credit card to help with the financial burden of school.
Depending on how much you use your credit card, it can make a lot of financial sense to use more than one cash back credit card.
Some cashback cards give a higher cashback percentage at certain stores or within specific spending categories. So you should be using such a card anytime you shop at those places. This often results in up to a 5% savings.
When you only use one cashback credit card you are tied to the limitations of that card. Such limitations sometimes include maximum annual cashback earnings or maximum earnings at the highest cashback percentage.
Having a second cash back credit card, allows you to switch cards when you reach account limitations or when you will receive more cashback with one card over the other. This way you are earning the most cashback possible.
Do keep in mind that some credit cards have minimum spending limits to qualify for rewards. So make sure you meet all requirements before tucking away one of your cashback cards in the back of your wallet.
There are many factors that will go into how much cash back you will earn with your credit card. The most obvious ones are how much money you spend and how much money you spend in the card’s bonus categories, if applicable.
You can see that not every cash back credit card will give the same cashback percentage rate. Most cards will list at least a basic outline of their cashback reward program in their details bullet list.
What some people may not realize is that not everyone will qualify for the same cashback rates. Like your interest rate, you only qualify for the best cashback rates if you have a good credit score.
If your credit history is not great, you may not qualify for the best cash back credit cards. You might still get approved for a cash back credit card with a lower cashback rate. After paying your bill on time for a while, it is often worth calling your card issuer to request a cashback increase or apr decrease.
To get a ballpark figure of how much cash back you can receive, find a suitable cashback credit card and check the card terms & conditions. Take note of both the regular cashback rates and the cashback rates for specific spending categories. Also take into consideration annual cashback limits and any introductory periods. Then compare this with approximately how much you spend annually.
Remember that you can change your spending habits to use your cashback credit card more often instead of cash or debit card. Just don’t charge more than you can afford to pay off or our interest charges will eat up any cashback you receive.
When you compare cashback credit cards, you will find that there isn’t just one type of credit card that pays you to use it. Here are some common cash back credit card types:
The basic cash back credit card issues cash back monthly or annually based on how much you spend. The cashback rate is often a set percentage for all purchases, but the rate can go down over time.
Certain cash back credit cards will give higher cashback rates on gasoline purchases or even automotive maintenance purchases. A gas reward credit card is perfect for anyone who drives much, even as a secondary card.
If you shop at a certain store a lot, you can get a store branded credit card. Usually you only get benefits in that particular store though. Do again, it might not be best as a primary card.
Some credit cards have reward systems setup where you earn points that you can redeem to various merchandise. If the reward is something you actually need, you may appreciate this perk.
An airline credit card isn’t technically a cashback credit card, but if you like traveling it’s as good as cashback. With airline miles credit cards you can earn free trips and other flight benefits.
Check back for future posts when we feature each of these card types and explain how to get the most out of them.
Here is a quick post that answers the question “what is a cash back credit card?”
What is your definition of a cash back credit card?
Welcome to our new blog. Through this blog we will educate you about cash back reward credit cards and how to get the most cash back. While cash back credit card offers can be a financial blessing, you need to know how to properly compare cash back credit cards and you have to know how to exploit these programs.
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Jeremy Biberdorf
CashBackRewardCreditCards.net Founder
