A cash rebate credit card has one unique feature that is different from regular credit card. It returns a percentage of the total amount of money charged to the credit card back to the card owner. The rebate may be given on a monthly or annual basis. The rebate percentage usually range from zero to two percents but can go as high as five percents for some credit cards.
Interestingly, the cash rebate is seldom in the form of cold hard cash. Neither do the credit card companies send checks to the cardholders. Instead, the rebate appears as a credit entry in the monthly or annual credit card statement, which effectively reduce your existing outstanding balance.
As an example, if you charged $5000 to your credit card that offer a 1% rebate, you will have $50 credited to your credit card balance. You now owe the credit card company $4950 instead of $5000. However, this is an ideal situation. It is possible that you will not receive the stated rebate in full due to some surcharge or terms and conditions lay down by the credit card companies.
Besides cash rebate, card holders can also accrue reward points which allow them to redeem other rewards such as free air ticket, discounts at gas station and restaurants, gift certificates and other brand name merchandises. Other extra perks may include zero dollar fraud liability guarantees and no annual fees.
Many established banks such as Bank of America and CHASE offer cash rebate credit cards. You can visit the local offices of these banks to submit your application. Many of these card offers come with no annual fee and a zero percent annual percentage rate for the first 6 or 12 months.
An easier way is to apply for it online by visiting any credit card directories on the Internet. This way you do not have to join any queue or waste time travelling to the banks. You can browse and compare different cash rebate credit cards in the comfort of your chair. Once you are ready, simply fill up the application form online and submit it with a click of your mouse. For security reason, online application should never be done in public places like an Internet cafe.
If you frequently use a credit card for most of your purchases, consider switching to one that offer cash rebate. Over a long period of time, the rebates you receive can be pretty significant.
By: Stephen Chua