A recent research made in the credit card industry shows that there is a rising fame in the use of the cash back credit cards among the credit card consumers. It is a good way for the credit card users to make their finances go further. The latest marketing trend in many credit card companies is offering the benefits of rewards and cash back programs for their subscribers who frequently use their credit cards. This form of reward has become popular in many credit card companies in the past two years and it continues to gain preference among the many credit card users in the following years thereafter.
Credit card companies provide rewards to their clients by providing them a cash back incentive for shopping. The reward points are higher in purchases made for shopping which is offered in about 20 percent in most credit card companies. The cards that you can use with the cash back reward feature are mostly classified as standard instead of the gold or platinum cards that demand high level of requirements to meet by the credit card applicant.
Next to the cash back reward, air miles reward is another popular way to entice people to get credit cards, taking about 10 percent in popularity among the available incentive reward programs. The increasing preference among credit card users on availing the cash back reward incentive is due to the increasing points earned in every amount spent using the credit card facility. As the point accrues, you can cash out the equivalent amount of your earned points either on an annual or monthly basis.
Getting a credit card is a good way of obtaining a personal loan without the need to apply every time you need cash. It is in fact a faster way to get a quick cash loan. The point earned in the cash back program usually varies from the credit card companies. The American Express Platinum Cash Back Cards for instance pays 5 percent in every £2,000 spent from their credit card loan. Consumer protection agencies usually remind credit card users not to be carried away in habitually using credit cards for every purchase made, forgetting about the interest rates that apply on top of the amount loaned from their credit line.
It seems that in order to maximize the benefit of the cash back program, you need to frequently use your credit cards to earn more points. From paying for gasoline, groceries and dining out, credit card users are enticed to use their credit line to build higher points. Thus, it may be assumed that changing your financial habit of paying cash into making purchases using credit cards instead is part of the game. However, it is always important to use credit cards more wisely and make sure to pay off your loan on time to avoid incurring additional interests to pay for. Financial advisers always give constant warning in using credit cards in emergency circumstances only. Weighing the risks and benefits of using credit card facilities is a matter involving sound discretion of credit card consumers.
About the Author:
Mackenzie Salis is a finance writer for 3 years. She is the author of the site: OnlinePaydayLoansGuide that can provide all valuable information about loans and warn you against fraud and swindle.