| Cash back credit cards are now being made available | | | | what the customer who only glanced through the |
| in a variety of new options. However, it is important for | | | | brochure expects. |
| consumers not to skip over the process of | | | | Another big catch is the high credit rating necessary to |
| researching all details of a card before applying. Cash | | | | get one's hands on any of the best cash back credit |
| back credit cards, although useful credit card solutions, | | | | cards. The most popular cards all require at least a |
| also frequently carry with them several "catches" | | | | good credit rating, with many asking for excellent. The |
| (targeted reward categories, high credit necessary to | | | | effect of this is to push the target market of typical |
| apply, potentially capped rewards) that consumers | | | | cash back credit card consumers toward two groups: |
| need to inform themselves about in order to maximize | | | | first-time credit card applicants and the very financially |
| their effective use of the cards. | | | | prudent. And it is a nice bonus for people with good |
| In a world of rising gas prices and falling employee | | | | credit (or at least no bad credit) to be able to earn |
| compensation, it's more true than ever that a small | | | | typically 1% of the purchase of price back on most |
| amount of cash can go a very long way. This, at least, | | | | goods, but for anyone in dire financial straits looking to |
| is the logic behind the variety of new cash back credit | | | | put together some extra money through cash back |
| cards that now flood the market from many major | | | | rewards, it would be wise to look elsewhere. |
| providers. These cards offer a number of different | | | | The biggest catch of all, though, is that the promised |
| cash back plans for several types of purchases: cash | | | | rewards may run out sooner than the uninformed |
| back for retirement, for charity, for affiliate products. All | | | | customer thinks. Depending on the individual card, |
| are designed, at least in part, to encourage credit card | | | | percentage rewards in some cases only apply after a |
| use by returning some percentage of the purchase | | | | certain amount of money has already been charged |
| price to the consumer at the end of the year. It sounds | | | | to the card in a given year ($2000 and up, in the low |
| like--and can be--a good deal, the literal truth of the | | | | range), or more alarmingly: rewards may stop applying |
| classic adage "spend money to make money." | | | | after a certain amount of money has been put toward |
| But in addition to the good deal, cash back credit cards | | | | the products that generate the highest percentage of |
| carry with them hidden hooks and lines. The card | | | | rewards ($1,200, to quote one of the high figures.) If a |
| application always lists these plainly, but customers | | | | customer spends a large amount of money on fuel in |
| who just want to cash in on the promise of quick | | | | a year, expecting cash back options to alleviate some |
| percentage rewards can often overlook the most | | | | of the sting of current high gas prices, that customer |
| crucial caveats of all. More savvy customers, | | | | may find the rewards less rewarding. In some cases, |
| however, should ask themselves maybe the most | | | | the number of cash back rewards earned through |
| important question anyone can ask when considering a | | | | using a cash back credit card can even be capped at |
| new credit card: what's the catch? | | | | a certain figure, at which point what the customer has |
| The first catch is that the high-end cash back rewards | | | | left is just a credit card like any other. |
| don't usually apply to entertainment, housing, or luxury | | | | So yes, the percentages sound good, initially, and do |
| items. Since these make up a large portion of most | | | | help to offset typical expenses. But, as always, it's |
| people's paychecks, anyone who believes that a | | | | wise to look carefully at the fine print of an agreement |
| hypothetical 5% cash back guarantee will apply to | | | | before signing, and to remember that there is no hook |
| everything purchased with that cash back credit card | | | | without a string attached. Cash back credit cards can |
| will be in for a rude surprise. The higher fees are | | | | be a powerful tool for consumers to get something |
| typically targeted toward fundamental goods in our | | | | back for what they put into the economy, but without |
| society: supermarket purchases, drugstore runs, | | | | informing themselves and doing the research, they |
| gasoline. Most of the best cash back credit cards | | | | may just find themselves caught up in trouble of their |
| offer a flat 1% fee on other purchases, which can be | | | | own making. |
| substantial by the end of a year, but still possibly not | | | | |