What is Cash Back Credit Cards?
Credit card cash back (or cashback) is a promotional instrument of various financial institutions, intended to induce cardholders through a cash reward. Such rewards are a minor percentage of the purchase price of any product or service paid for by the cardholder through their cards. They are real cash values that cardholders can use for paying off bills or having them deposited into their bank accounts.
Are Cash Back Credit Cards Different?
Cashback credit cards work the same way as your standard credit cards. The difference, however, is that in the place of rewarding you with points, the cashback credit card will reward you with actual cash.
While with regular credit cards, the points awarded to you can only be used by you to redeem the services or products that the issuer of the card is promoting, there are simply no such bindings on the manner in which you decide to use your cash back credit card rewards. You are free to use your cashback rewards to buy whatsoever you wish, pay off your next bill for the credit card, or deposit the cashback amount into your bank account.
Cash Back Credit Cards Calculator
The easy-to-use Credit Card Cash Back Calculator of our lendmemoney.com affiliates takes your cash back limit into account. If you have a limit on the amount your credit card allows you to earn as a reward, select the “Yes” option, and enter the amount of your cash back limit.