Have you heard of this Cashback Creditcards? What basically is this and how can it give you an advantage over a normal traditional credit card?
They are no different from any traditional credit card. In fact they are credit cards but the lender is giving an opportunity to you to make some extra cash by giving you an incentive to accrue some points by spending on their designated locations where lender have established relationship. This way you spend your money on a designated Mart, shopping center, Airline etc and Lender will continue issuing you points or percentage in refund to your account. Usually it stands at 1-2% but now a days many banks do offer 5% Cashback to attract more people to their new cards. These Cashback Creditcards are in fact more popular over traditional cards because a customer can see that they are getting some refunds at the end specially when it doesn’t matter to customer on spending their money on those designated locations because they would other usually spend money over there any way.
Usually the 5% Cashback rebate is valid for a certain period of time such as 6 to 12 months and after this the cashback rate will revert back to it’s usual rate which may be 1-2%