The Popularity of Cash-Back Reward Credit Cards Continues to Grow
We all love our cash-back rewards credit cards, and now that the bulk of the credit crisis has been resolved, credit card companies are once again hunting down credit card customers who want a great deal on cash-back rewards.
A cash-back credit card can be a great deal, provided you follow the new credit card rules. If you act responsibly and pay your credit card on time, a cash-back credit card can provide you with many perks – simply for spending as you normally would.
Although credit card companies are stilling shelling out loads of cash-back rewards to their customers, the rules have become slightly stricter, particularly for individuals who fail to pay their bills on time. Another factor to also consider when choosing a cash-back rewards credit card is the interest rate, as some come with fairly high APRs.
Cash Back versus Other Perks
Do you want cash back or do you like the perks, such as airline points? It seems that the vast majority of people want the cash. In fact, according to J.D. Power’s 2009 credit card satisfaction survey, nearly 62 percent of respondents opted for cash rewards, which was nearly five times that of the next popular perks, which were airline points or rewards.
This is probably due to the fact that many individuals just don’t want to deal with points and rewards, all of which can prove to be quite confusing. But let’s face it: cash is cash and everyone understands that.
There are also many credit card companies that offer very generous cash-back programs, such as Discover. Using their 5% cash back program, customers can earn rewards on everyday purchases, such as gasoline, groceries and restaurant bills, just to name a few.
Chase’s Freedom card also offers good cash rewards, as it boasts a 0% introductory rate, as well as a $100 cash reward if you charge at least $799 on your credit card in the first three months.
Considering that the average family spends about$6,000 a year on credit cards and it’s clear that rewards programs can certainly pay off for many credit card customers.
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