There is no better way to win consumer loyalty than paying them to shop. Cash back credit cards aim to do precisely this. A percentage of every purchase you make is set aside as points. Once you hit a certain number of points, you get it back as cash! You could use it to pay off part of your credit card bill, or even have it credited to your bank account. While most cash back credit card companies give cash back at the rate of 1% or less, you could find one with higher rates as well.

How It Rebates Work

Customers love cash back credit cards and that helps build strong customer loyalty, providing a lucrative proposition for both the card companies as well as their customers. A customer will be more inclined to use a particular credit card for all of his shopping needs once he is sure to get back a significant amount of cash from his purchases. In fact, he might even continue with one service provider over time for this very reason. The more money you spend on your credit card over a longer period of time, the more money that card issuers can make with this incentive provided to consumers.

When you enroll for a cash back credit card program, make sure you know how many dollars you have to spend in order to start receiving rebates. This is primarily because you may end up being locked into a long-term plan with the credit card company without tangible benefits.

Where to Find a Card

Ask your credit company if they offer a cash back rebate feature on your current card. There may be incentives that you are not even aware of so be prepared to do some groundwork regarding cash back offers.

If you are in the market for rebate credit cards, here are some tips to help you compare and choose the best one for you:

1) Identify your daily expenses or priority purchases. Choose a cash back scheme that pays you for purchases you would normally make anyway. The right card for you is the one that gives you cash back service on all your purchases.

2) Don’t be blinded by the highest percentage of cash back. This may not always be the best deal. Some cards offer you up to 5% cash back, but only on certain purchases, or purchases from select merchants. If those are not purchases that you would normally make, it is not going to be the right card offer for you.

3) Pick the cash back card that suits you best. Some give you immediate discounts on your purchases, some reduce your account balance by the amount of your benefit and some send you checks or gift vouchers periodically.

4) If you like having a bonus check to spend, choose a card that pays out a semi-annual or even an annual dividends check.

5) A gas cash back credit card can help you save every time you fill up, offering cash discounts on every gallon of gas that you buy. In addition, many also give you rebates on any purchases made at gas station convenience stores as well.

6) Cash back credit cards that pay you a rebate for every purchase generally offer a lower percentage savings, typically around .5 to 1%. Don’t let this discourage you. This can add up to considerably more cash back for you in the long run if you don’t typically patronize a very specific select group of merchants.

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