Cash back credit cards vary in terms of the amount of incentives and the set up for the programs. Some cards simply offer a percentage of cash back for each dollar spent. While rewards do vary, most card companies offer cash back rewards in the range of 1-1.5 per cent. Some cards reward every purchase equally, while others reward users with bonus rewards for buying products from network companies. Card companies are partnering with retailers and other businesses and some cards pay rewards up to five per cent or so for in-network card purchases.
Points based cash back programs are also very popular. As opposed to offering a percentage of cash back for purchases, some card companies award points to card users for certain amounts and types of purchases. Users can then exchange points for cash back or other types of rewards.
Credit card companies reward users for various reasons. Sometimes card companies want consumers to spend money to carry higher interest-bearing balances. Others reward consumers more for frequent card uses as a way to increase revenue for transaction fees charged to merchants. Merchants typically pay transaction fees to card companies to process card purchases. Thus, a modest 1.5 per cent cash back payment to a card user is reasonable to the card company who gets significantly more in transaction fees from the merchants.
The biggest decision for consumers considering cash back and rewards programs is what types of benefits and perks are most preferred. Some credit card companies offer cash back only cards that pay the percentage rate in cash back. Others use the point based system but offer a wider selection of reward perks. Many companies rely on their partner relationships to offer higher value non-cash rewards to consumers. Additionally, there are combination rewards programs that allow consumers to choose between cash rewards and other product and service rewards at any point in time.
As with any type of credit card offer, borrowers need to consider their own spending habits, and optimal benefits when reviewing card options. Cash back incentives are most beneficial to users who use cards regularly and in the ways rewarded by the card company.
About the author: Michael writes on a variety of credit card offers including balance transfers, cash back cards, and rewards programs.
Article Source: http://www.articlealley.com/cash-back-credit-cards-reward-regular-spenders-571468.html
Will I be able to buy a house?
Here's the scenerio:
I am a single mother with one child. I am in my last year of law school, recently paid off all credit card debt, and will be leaving school with approx. $120,000 in student loan debt and no prospect at a full-time job. I have very little savings due to being in school full-time and had to even move in with my mother because I could not pay the rent. I ended my lease at the time it was to renew, so I have no issue with that. I do have a car and insurance payment as well as life insurance and rent to my mother, but that's it with debt. My credit is fair; in the mid 600's. There is no child support.
I want to get into a house as soon as I find a job as I put it off in order to go to law school. I was thinking of taking out a private loan my last semester of school as I do not have any private loans and do not have to pay for bar review courses. I have enough savings to get me through the summer financially, but I would need a job by September. Is this adviseable?
The issue is not to get from under my mom. I just feel it is waste to rent at this stage in my life. I need to maximize my income instead of throwing it away by renting. But I do not plan to start looking until after I find a job, just to clarify. But that will be my situation after I find a job and am looking for advice based on that.
Answer
Being a Realtor, I would advise to not get into a home so quickly. It will be better for you to save up some money, and then get a home. You want to have some money in reserves in case something breaks in the home and you need to fix it.
answer? Kindly help others and answer below.
Posted in 
Tags: 