Finding The Right Credit Card For You Is As Easy As 1,2,3

Preferred Type of Credit Card?

Monthly Credit Card Use?

Do You Carry a Balance?

Cash Back Reward Credit Cards – Avoid The Traps

On the surface cash back reward credit cards sound like a great thing to have. After all, what could be better than going out and shopping and get money back for doing it. However, many of these cards are often not what they seem.

While they do offer cash back rewards some credit companies put all kinds of limitations on your rewards such as reward caps, annual fees and even excluding purchases made at some retailers. In fact some of these cards contain so much fine print and exclusions that by the time you get through reading them all your card may well have expired.

Here are just a few of the things you don’t want to see in those cash back reward credit cards.

Spending Thresholds

When your credit card has a spending threshold that means that you have to spend a certain amount on your card before those cash back points begin accumulating. The higher the spending threshold the more charges you will rack up and the better chances that you could end up hurting your credit by overcharging on that credit card simply to get the cash back you were promised.

Exclusions

While some cash back reward credit cards give you a percentage on anything you purchase other credit cards exclude certain merchants. So, if you buy at say Sam’s club or other discount stores, you may not get any cash back regardless of how much you spent on your purchases.

Limitations On How You Spend The Cash You Get Back

Most people feel that the cash they get back from credit card is their money and should be spent anyway they please. While some credit card companies agree there are some that actually tell you how to spend the cash you get back. For Example the Fidelity Retirement Rewards American Express credit card gives you cash back but, only if you put that cash into your Fidelity IRA.

What it all boils down to is that although reading all that fine print can be a chore and tedious, it is important to know exactly what you are getting before you choose one of those cash back reward credit cards or you just might find yourself deep into debt with nothing more in your pocket that a dream of getting cash back for your purchases.

Related Information:

  1. Cash Back Reward Credit Card – Helpful Tips for Choosing One A cash back reward credit card can be a wonderful way to keep more money in your pocket but you must first understand how they work and what to look…
  2. Take Advantage of Cash Reward Credit Cards When you are buying goods and services why not use cash reward credit cards to give yourself an instant rebate? Find out how they can benefit you here….
  3. Credit Card Offers: Avoid the Traps, Get the Facts Find the credit card offers that best suit your financial needs while avoiding those that are not in your best interest….
  4. 0 Interest Credit Cards – Avoid the Traps, Get the Facts 0 interest credit cards can be a great way to save money, but you can also get burned by them. Get the information you need to succeed right here….