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5 Tips for Choosing the Best Cash Back Credit Card
The offers to make money as you spend money are quite enticing to the modern consumer. With a cash back credit card, you can earn percentages that can reap rewards at the end of the year. So to choose the best cash back credit card for you, here are some questions that you will want to ask.
1. What counts toward the cash back?
While it might seem that any purchase or addition to the overall cash back credit card balance would reap rewards, this is not generally the case. Many times, balance transfers and cash advances do not contribute to the percentage back. If you think that you will be using the cash back credit card for those purposes, youll want to see if you will be rewarded or not.
2. How much cash back are you receiving?
Of course, if youre looking for a cash back credit card, youll want to choose the one with the highest amount of percentage that you can get back. And the cards vary widely in this respect. Look at several cash back credit card companies to see if one seems particularly high.
3. Can you increase your cash back?
Besides increasing the overall balance and contributing to the cash back, some cash back credit card companies also encourage customers to frequent certain retailers to get a larger cash back amount. If you already go to these establishments, these cash back credit card companies might work out better for you.
4. How can you redeem the cash back?
When youre using a cash back credit card, you want to be able to get your rewards as frequently as possible. There used to be a time when you had to wait until the end of a twelve month cycle to receive the benefits, but it has changed. Some companies are now allowing customers to redeem their cash back as payments against their balance or to contribute to a charity as frequently as certain amounts are accrued.
5. What are the fees?
As with all credit cards, youll want to be sure that the cash back credit card you sign up for doesnt charge a large fee that actually upsets any rewards that you might be receiving. Try to find a cash back credit card that doesnt make you pay for your cash back.
With a cash back credit card, you can earn a little money as you spend for things that you already need.
Credit Card Cash Advance or Payday Advance?
People will always have some reason for needing cash that they do not have. It does not always have to be an emergency such as unexpected expenses in between paychecks. It could also be because they want buy big-ticket items or go on a grand holiday. For whatever reason, two of the fastest ways to get funds is through credit card cash advances or payday advances.
Both have its advantages and disadvantages. It all boils down to the borrowers ability to pay. Below is a comparison between the two options:
§ Payday advances have a higher interest rate than cash advances from credit cards. The $10 to $30 finance charge per $100 borrowed may not seem too much to pay at first, especially if the borrower is able to pay off the loan after two weeks. However, if the borrower cannot pay on the deadline, the finance charge is compounded for every week that the loan is unpaid, a rate of increase much faster than for credit cards.
§ Credit card cash advances can take a longer time to pay. The usual practice of credit card companies is to apply payments to any existing balance first before paying off the cash advance itself. Unless the payment is large enough certainly well over the combined minimum payment for the current balance and the cash advance it will take a long time for the borrower to make a dent on his credit card debt.
§ Payday loans have no effect your credit history. Because the terms are quite short and the loan is guaranteed against the borrowers next paycheck, payday advances do not contribute to or detract from your credit score. This is unlike credit card cash advances, which are included in your credit history.
§ Borrowers get cash faster with payday advances than with credit card cash advances. There are usually less requirements, no faxing of documents and credit history checks, making the loan process faster and the loan guaranteed, more or less. On the other hand, credit card cash advances are subject to credit history checks and is not guaranteed.
Based on the pros and cons listed above, fast cash loans, like payday advances, seem to be the better choice over credit card cash advances. However, the borrower has to keep in mind that fast cash loans are short-term loans only and should not be used as a long-term financial solution. It is better only if the loan is sure to be paid on or before the deadline.
If the borrower is not sure that the loan can be paid in two weeks, a credit card cash advance would be better because of the longer period for payment. However, one should not make a cash advance on a card with a large balance or, worse, maxed out. People should avoid maxing out their credit cards because it becomes harder to pay several of these at once. In the end, only the borrower can decide which of the two options payday advance or credit card cash advance is more suitable for the situation.