Watch Out
for Cash Back
Many people take out credit cards that offer them cash back.
However, this “cash back” can end up costing them more than
they get back from their card. Initially, these cards can
seem very appealing, but because of the way the system works
it can end up costing much more than you initially thought
it would.
As it is with most credit card offers, you will find that
what you are promised is not what you get. There are terms
that are in the contract that you may not see, and that is
pretty much what they are counting on. If you plan on using
the card a lot, you are going to want to read the fine print
on it, or you will quickly find yourself in debt over your
head.
Depending on the card, you will get points or dollars
depending on where you shop. Some cards give you these for
wherever you shop, others it is only in predetermined
locations. Some give you points for every dollar spent;
others do it on a percentage basis.
However, many of these cards have higher interest rates, and
for those that give you money only for shopping at specific
stores – those stores are usually higher priced stores. You
can find yourself racking up these cards to get the cash
back, and really you are only hurting yourself. If you want
to use these cards, you must be sure to only spend what you
can pay in full each month. This way you can get the
benefits of the cash or points, but you will remain debt
free.
SIGN
UP
