Cash Back Credit Card — How it Works and Who It Benefits
Cash back credit cards seem like magic to those who use them. Who would have ever thought that you could actually be paid to shop? Cash back credit card programs work that simply; a percentage of every purchase you make is set aside for you as points. When you reach enough points from your purchases, you can pull that cash out of the fund. That cash can then be applied directly to your cash back credit card balance, or you can request it in the form of a check. The best cash back credit cards will offer up to 3% cash back, but 1% or less is most common.
How it Works
It is easy to believe that cash back credit card companies have hired the wrong person to do their math. It’s anti-intuitive to think that a credit card company that lends you money will give you even more money the more you shop! In actuality, cash back credit cards benefit the credit card company as much, if not more, than the consumers who use them. The reason cash back credit cards work so well is that they build strong customer loyalty. When a customer knows that he has the potential to gain a significant amount of cash...
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