What Are Rebate Credit Cards? Are Rebate Credit Cards Right For You?

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Here is a great article about rebate credit cards. I use rebate credit cards myself and I've learned some helpful tips from Darin Shebesta, here's a summary of what Darin had to say:

Wouldn’t you like to get back some of that hard earned money you spend everyday? Well, I have been doing just that for a couple of years simply by using a credit card. Sounds too easy, right?

Please note that in order for the credit card companies to pay me back, I have to first use their card by making purchases of some sort. Banks offer reward/cash rebate cards that pay you back a certain percentage of the money you spend. However, there are some steps that need to be taken to ensure that rebate cards are right for you.

Finding the right rebate card

For those of you who do not pay off your credit card balances every month, this type of card is probably not right for you. That’s because the Annual Percentage Rate (APR) tends to be higher on rebate cards. If you were to carry a balance on a rebate account, the interest rate typically tends to be higher than for a non-rebate card.

For those who carry a balance, using a card that offers a low APR is appropriate so you’ll pay less interest charges. There are plenty of 0% APR cards available, but be careful to check how long the low interest rate introductory period lasts before your rate is raised.

For those who are still interested in rebate credit cards, here is more important information. Some rebate cards require you to carry a monthly balance to earn cash rewards. This defeats the purpose of using a rebate card because you end up paying interest on the balance carried (the APR is usually higher on a rebate card).

If you don’t carry a balance to the next month, no rebate is accumulated. I spent at least six months trying to figure this out with a so-called “rebate” card. I stopped using the card for my purchases once I realized there was no incentive for me to do so.

Darin then goes on to write about credit card rebate award rules, as well as credit card tips like signing up for online bill paying, avoiding cash advances and comparing credit card fees. Read the full article here.

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