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U R @: Education Center : Money Savers : Cash Back Rebate Credit Cards: Get Paid up to 5%
CASH BACK REBATE CREDIT CARDS: GET PAID UP TO 5%
Over the last few years, cash back rebate credit cards have changed. Why? Because credit card companies were losing money on them. Yes, as strange as that sounds, it is true. One year ago, there were a handful of credit cards that offered 5% cashback on all gas station, grocery shop, and drugstore purchases. Today, there is only one that offers 5% cashback at all of these locations.
Currently, the Blue Cash® from American Express credit card offers a full 5% cashback on everyday purchases at gas stations, drugstores, and grocery shops. However, there is a slight catch: you must spend $6500 in order to get the full 5% cashback. For the first $6,500 of spending, you only receive 1% cashback on everyday purchases and .5% on all other purchases. But, once the spending threshold is met, not only will you earn 5% cashback on everyday purchases, but 1.5% cashback on all other purchases.
Let’s examine the savings. Our first assumption is that you use your card for every possible purchase. Our second assumption is that you spend $150/week on groceries, $75 a week on gas, and $25 a week on drugstore purchases. Additionally, we’ll add in $200 a week for living expenses and entertainment. That brings weekly spending to $450, a very modest number for families.
With these expenses, it will take about 15 weeks to reach the $6,500 threshold. During that time, you will earn $36 cashback on everyday purchases and $15 on other expenses for a total of around $50. While its not a fortune, its still cash in your pocket.
During the remaining 37 weeks of the year, your purchases move up to the full cashback level and the benefits of this credit card really kick in. Your everyday purchases will now earn you a not so measly $457. Plus, your general expenses will earn you a respectable $112. All together, you would earn $619 cashback in one year by using the American Express Blue Cash credit card instead of cash or your debit card.
If you do not pay your credit card balance in full every month, the cash back you earn can offset your interest fees. However, if you take advantage of the interest free grace period and pay your balance in full each month, your $619 cashback bonus is as good as cash in your pocket.
Click here to view more information or to apply for the Blue Cash® from American Express credit card or click here to view all current cash back credit card offers.
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