How to Compare Rebate Credit Cards
- 1). Compare where you earn cash-back rewards, as credit cards often offer tiered rebates depending on where the purchase was made. For example, you may receive a higher return at a gas station than at a fine-dining establishment. Consumer Reports magazine recommends focusing on cards that give the highest rewards for the shopping categories in which you spend the most money.
- 2). Check the annual percentage rate (APR), which denotes the interest you must pay if you don't pay off your entire statement balance. A lower APR is ideal, according to the Federal Citizen Information Center.
- 3). Review any fees assessed for using the credit cards. This most often includes an annual fee, which the Indiana state government likens akin to membership fees. Additional fees may include cash advance fees or late payment fees. These fees may eat into the rebates you earn with the card. Lower or no fees are best.
- 4). Calculate the actual reward percentages earned. Some rebate credit cards give you straight cash back at a percentage of your purchases, such as 2 percent. Others reward you with points that you must redeem for a rebate, often at a different value than they were earned. For example, you may earn one point for every dollar spent, but you must redeem two points for every dollar in rebates you request. Review the terms provided with the credit card application or call the credit card company to get the actual cash value of any rewards, as specific rates vary widely by company.
- 5). Read the credit card terms or ask a credit card company representative if there are limits for your earnings. Consumer Reports magazine warns that some rebate credit cards only let you earn rewards on a limited amount of purchases every month. For example, you may only earn cash back on the first $1,500 in purchases made every 30 days. Cards with no limits are preferable.
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