New Survey Points to Rising Popularity of Cash Back... - Other News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » New Survey Points to Rising Popularity of Cash Back Reward Credit Cards

New Survey Points to Rising Popularity of Cash Back Reward Credit Cards

Add to Favorites:
New Survey Points to Rising Popularity of Cash Back Reward Credit Cards

If you are going to make the purchase, you may as well double dip as much as possible, right? Apparently, your fellow consumers feel the same way because cash back rewards cards are continuing to grow in popularity. It sweetens the pot when credit card issuers award more points for commonly purchased goods, such as gas, groceries and travel. In fact, a recent survey of cash back credit cards revealed that card issuers tend to pay 28% more points for these types of purchases than other purchases made with the card.

Friend or Foe?

It can be a rewarding feeling to get your credit card company to pay you for stuff you were buying anyway. Don’t be fooled into thinking that the credit card companies are not winning in the situation as well though. Here’s the thing, many consumers are propelled to use their credit card to make purchases because racking up the points and racking up the cash is an incentive. The problem is that some people get out of control and then can’t pay their balances off when the credit card bill comes due. In these situations, you may end up paying more in interest than you could ever reap in cash back rewards.

Cash in Your Pocket

Now, if you are not allowing the cash back reward incentive to change the purchase behaviors you have or you control the purchases, then you can benefit from the deal. Cash back rewards can work in a couple of different ways. You should check with your credit card issuer to find out how its program works. Some credit card issuers credit the cash back to your credit card balance, so it automatically reduces the amount you owe for the month of the credit. Other credit card companies send you a paper check in the mail. Still, a third option is that the credit issuer allows you to choose how you receive your award payments.

Take Advantage of the Bonuses

If you are truly a wise consumer, you will strategically approach how you use your cash back credit cards to reap the highest amount of rewards. Get to know your rewards program so that you know what types of purchases earn you rewards and which purchases earn you bonus rewards. For example, most credit card rewards programs pay more points when you spend money at the gas pump, grocery store or on travel-related expenses. So, instead of paying with your debit card, make sure that you pay with your credit card for these types of purchases and then pay off the balance when the bill comes in the mail.

Also, pay attention to statements, emails from the credit card issuer and statement inserts for bonus times. Some cash back rewards card issuers run special promotions, so for a one-month period any spending you do earns you more rewards. Or if you spend on certain types of purchases during the promotional period, you rack up extra points, which equates to extra cash in your pocket.

Add to Favorites:

Related News:

Debt Could Put a Damper on Romance

Posted: August 18, 2017

Does credit health factor into romance? The answer is yes, according to the new Chase Slate 2017 Credit Outlook survey. Carrying a lot of debt could be a deal breaker for some people, with 37% saying that it could make them think less of a ... Continue reading
Voting for Discover it Student Card Design

Posted: August 17, 2017

Discover is asking college students to weigh in on the new design for their Discover it Student Card, so from now until September 21, they can vote on their favorite design on Discover's website. To get the word out, they are running a ... Continue reading
Bank of America and PayPal Strike a Deal

Posted: August 16, 2017

With more and more people interested in making mobile and digital payments, Bank of America and PayPal have inked a new deal paving the way for Bank of America customers to be able to link their credit and debit cards with PayPal and use ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Match Mile For Mile: We’ll match all the Miles you’ve earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $150 into $300 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee. See WebBank/Fingerhut Credit Account Terms.
For Bad Credit