Earn Money Back With Cash Back Credit Cards

By Nick Makaryk

One good way of earning money back is to get a cash back credit card. Once you have established credit for yourself and have been using them as a matter of convenience and not making any late payments, then it would be well worth it for you to get your hands on a cash back card. They are available for both personal and business people alike.

Using these cards makes makes good sense because you have to make purchases anyway, so you might as well use them and get cash back. If you have own a gas card, you might choose instead to use cash back credit cards to purchase your gas. The gas cards most likely do not give you anything back in return, but people will always need to purchase gas anyway for work, shopping and just getting around so you might as well get some money back for purchasing your gas.

When you use cash back cards for your gas purchases and pay cash for everything else, you will get some money back for your gas purchases and continue to pay off the bill each month. You need to keep up with your monthly payments or else it will end up costing you way more when it comes to paying for your gas. With the way that gas prices continue to rise, that's probably the last thing that you want to do, is to be late with your monthly bill.

Bank issuers and card companies want you to charge as much as you can, because they want you to carry a balance on your card. Carrying a balance on your card, you will need to pay interest. Interest rates are high on some cards because they are unsecured debt. Some high interest cards have interest rates of 21 percent or more. You certainly do not want to pay an extra 21 percent interest on your gasoline purchase, if you fail to meet your monthly payments. Always pay the your bill off promptly and be sure not to go over the spending limit.

Card companies make money on fees, and are charged to you as well as to the vendors. The vendors pay a fee of upward of 5 percent to allow you to use your card. One of major reasons that vendors don't mind paying the fee is because they know you will be spending more money when you are paying with a plastic card and not cash.

Also they make money on fees that you will have to pay if you go over your limit or if you are late on your payments. And,in many cases, you will have to pay about $30 - $40 each time you are late on your credit payment. When added to the interest fees you already owe, this can really end up being a lot more.

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