Credit cards offer a variety of programs to help consumers seemingly make more from their purchases than they would otherwise. Most program cycle around point systems which can provide to you a variety of rewards towards things you want like airline tickets, or discounts on purchased items, and cash-back as a percentage of money spent.
However, as the variety of awards change so do the complications of using them. This both makes it confusing, but at the same time, if utilized well, you can end up with much more than a couple miles here and a couple miles there. You can afford the plane ticket to visit your parents across country for free, or maybe that luxury vacation you take every winter.
1) Cash Back
Cash back was one of the first perks that came out of credit cards. Essentially for every dollar spent you have the opportunity to earn a percentage of your money back in a bank deposit, or as credit to pay off your monthly credit card bills.
While cash back certainly is a big incentive many people don’t choose credit cards with this perk as much as they do credit cards with other options. Initially, cash back sounds like a bargain, however, as credit card users often have specific interests, they tend to go after credit cards that offer the perks specific to them, and pay off at a better rate compared to cash back.
Some credit cards have countered the decrease in cash back rewards by utilizing a cash back value in points that can also be utilized with other cards, or redeemed for specific items, many of which I will get into in a bit.
For now though, credit cards with cash back options have a good following, especially for people who enjoy keeping life as simple as possible.
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