Credit card holders find credit card deals from time to time from credit card companies, motivating them to make purchases of certain products and services. They find credit card deals on such purchases beneficial because there is some discount or rebate associated with them. They also find credit card deals in cash back offers. Customers can compare credit cards for getting the best cash back offers.
They can also compare credit cards for the type of products for which these cash back offers are available. They can, of course, compare credit cards for other benefits as well such as low interest rate, less finance charges and higher interest-free period.
Cash back offers do not generally mean that cash is given back to the consumer for making a purchase through the credit card. Credit cards are not usually associated with cash except for the cash credit given along with consumer credit. That is, if the credit card holder needs cash, he can use the credit card at the ATM and withdraw the amount. This amount is fixed and is lower than the credit limit available in the credit card. The cash withdrawal is governed by different principles unlike credit-based purchases at merchant outlets.
The cash withdrawal from ATMs using credit cards attracts high interest rate from the very moment it was used at the ATM. Besides, there could be other finance charges also associated with this type of activity. Consumers are usually advised not to withdraw cash through the credit card until it is a necessity. Though there may be offers and deals in this regard, credit card holders are best advised not to take this option carelessly.
Coming back to cash back offers, there are offered by credit card companies to consumers on purchasing certain products or services, which are associated through business partnership with the credit card company. Suppose, one has bought air ticked from a particular airline company with whom the credit card company has a business agreement of this kind. The credit card company offers back the cash by crediting the amount to the card in the subsequent month. Credit card companies advertise these options, promising a certain percentage of the cash back offer for a product or service the consumers have purchased through the credit card. However, if the credit card company says that the cash back offer is 10% or 30% or 50% of the purchase, people often underestimate this.
The cash back offer is only for the base charges of the product or the service and the taxes or other charges are not included here. This means that the cash back that really takes place could be actually less than what is advertised and it is not for the full amount spent for the product. This is generally not noted down by the consumers while watching the advertisement on the television or reading it in the newspaper. They only come to know of the fact when they get the credit card bill with the percentage of the amount spent credited to the bill.