Do Cash Back Credit Cards Mean Money In The Bank?

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Do Cash Back Credit Cards Mean Money In The Bank?

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.

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