Cash rebate credit cards are one way that the consumer can receive something back for spending with their credit card. Many credit card providers use a rebate program as a way of enticing new customers to their products and keeping existing customers happy.
Each time you make a purchase with your credit card the bank or merchant services provider makes a commission from that sale. The rebate programs work by giving you back a percentage of that commission, usually around one to two percent of the total purchase price.
Unlike a typical rewards program, a cash rebate program deals in dollars only rather than points or rewards that are given to the cardholder once a certain level is reached. Naturally some people prefer to see an actual dollar amount come back to them from their spending which makes these cash rebate programs very popular.
This all sounds great though there is a few points that you need to understand before rushing out and signing your life away. Cash rebate credit cards typically have a higher annual percentage rate than a similar card without the rewards program. While this may never be an issue if you are able to clear the balance every month you still should be aware of how much it will cost you should be able to meet the required payment at the end of the month.
Be sure to check the relevant fees and charges that you are likely to have to pay before signing up to a cash rebate program. You do not want to find out the hard way that any rebates you receive are far outweighed by fees and charges. Also inquire into any limits that are placed on any rebates you receive. For example you might be keen on the latest flat screen TV and think that you should be owed to a decent rebate amount by buying it with your credit card, when in fact they may have a limit to the rebate that you can receive from any one purchase and you would have been better off paying another way.
A cash rebate card is about the only way that you can actually be rewarded for spending, but obviously there are certain limitations and conditions that you should be aware of before jumping head into a rebate program. Use your card wisely and watch your spending and there is no reason why you can not continue to earn a decent amount of rebate cash for years to come.