Be familiar with your Cash-Back Credit Card
By Ankit Sharma
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Credit cards not only enable you to make cashless transactions but also offer you a range of additional benefits including rewards programmes, lifetime-free services and cash-back offers. However these are strategies that credit card companies plan to trap the customers. Now-a-days card issuers are increasingly engaged in schemes that compel consumers to spend more on a regular basis.

Cash-back credit cards are one of such kinds that lure consumers to spend more as it enables one to earn money while using this particular card. Basically it is a special type of reward credit card that pays back in cash. Whenever you use your cash-back credit card to make purchases, a percentage of it is returned back to you. The cash-back rewards can be redeemed as gift vouchers or cash.

The cash-back which is in the form of percentage differs from issuer to issuer. Normally it ranges between 2% and 5% but under some promotional schemes, it may even go up to 10%.

Cash-back credit cards provide a great opportunity for consumers to get something in return for the spending that they are already doing. However, the consumer should look carefully at the pros and cons of their card offer in order to choose the one that is going to give them a maximum benefit.

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Abdul Majeed (Posted: Dec 4, 2015)
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