The most attractive thing about credit cards is the promise they will honor every time they buy. Whether there is a reward or not, this deployment is very reasonable for those who want to use credit cards. However, if you deprive the first credit card of the cash rebate, there will be financial problems. Points and privileges still exist, but card issuers recognize the power of attracting consumers with cold cash.
There is no doubt that the credit card industry is still very profitable. Issuing companies attract smart consumers by promising free funds and large bonuses. However, responsible consumers should think about why card issuers provide such services from the beginning. They may be pleased to think that we want the best, but the reality is that they cannot be expected to be so kind.
If you don’t choose the right card, the cash back card may not be what you expect. Please note the following, leading credit card companies:
Don’t let me play games
In order to convert the registration bonus into cash, you can issue several new cards and cancel them after receiving the cash. Opening and closing credit cards at will will affect your credit score. Credit usage is included in the final score, so if this ratio increases, the score will decrease. In addition, if you can’t reach a certain limit, you will lose the rebate of your credit card. If you overspend just to get kickbacks, your financial loss is greater than anything else.
Do mathematics
Don’t be attracted by the attractive 2-6% cache discount. The average exchange difference is 1%, so we should be alert to abnormally high quotations. If you are not able to read these high percentage rebates, you will realize that they are limited or almost impossible to obtain.
For example, some credit cards promise a 5% yield on food and groceries. However, if the majority of grocery shopping is conducted in the member warehouse, they are not eligible for discounts. Issuers usually exclude certain types of stores from their plans.
The revolving category also makes it more difficult for cardholders to track and obtain the benefits of high rate transactions. To make matters worse, you must register to join a higher discount category. Therefore, the bonus will never be realized when the credit card company purchases items without explicit confirmation.
In other cases, you must agree to a high annual membership fee to get a high rebate. It is reported that more than 65% of cardholders did not convert the rebate into cash. Ambiguous terms and the continuous obstacles of card issuers are the reasons why some consumers give up in frustration.
Read fine print.
All credit cards have their own rules related to repayment, expiration and forfeiture. For example, the cash rebate may accumulate losses over several months due to payment delays. Compulsory salary increase is another way for the card issuer to withhold some of your funds. Therefore, if your account has irregular amounts (as is often the case), you will remain in the account until the required minimum amount is reached.
Card issuers have also changed cash deposits, so cash recovery does not necessarily mean cash recovery. Rebates can be applied to invoices or paid to popular retailers as gift cards. Don’t assume that all credit card companies will send your payment by check. This obvious strategy used by some vendors makes it more important to carefully check the details before registering cards.
Get help before registering
If it seems difficult to find a suitable cash back credit card, many consumer centered comparison websites can help you find the answer. As long as you provide the details of your consumption mode and needs, you can get the results that are most suitable for these needs.
