Which Credit Card Company Was the First to Offer a Cash Back Bonus
Sears is the first credit card company that introduce the Discover cash back bonus credit card in 1986. After Sears debut the Discover cash back card, many other credit card companies start to offer features like signup bonus, miles and zero percent intro promo period. From that time onwards, credit cards become popular with consumers. With more and more credit card companies offering rewards credit card, there are now millions of cardholders. This is a major boost in the industry given there were only a few thousand cardholders before the cash back rewards credit card is introduced.
Cash back bonus card allows you to earn a certain percentage of cash back on your purchases. The card could offer a flat rate cash back program or a rotating bonus category program or both. To make signing up the cash back card worthwhile, you must use it regularly. You can think of ways to use your card as often as possible. As long as you have the financial means to pay back the card, it will be wise to use the card for spending money on your purchase.
The cash back rewards that you have accumulated are shown in your online account. You can check your account online to find out how much cash back you have accrued. When you have accumulated enough cash back, you can exchange it for a gift card, travel statement, direct deposit in your bank account and e-certificate. Many cash back cards don’t have expiry date for the cash back rewards so you don’t have to worry about remembering the date to redeem your cash back. The cash back rewards will not expire as long as your account is open.
Using a cash back card to pay for your purchase not only help you to save money on cash back rewards but it also provides a safer method for you to pay your bill. When you use the credit card to pay for your purchase, you are like borrowing money from the credit card company. You are billed now and the bill will be recorded in your credit card account balance.
You are required to pay back either by making a minimum monthly payment or settling the balance in full at the end of the month. If you make a minimum monthly payment, you are only paying back the interest and the balance gets rolled over to the following month. If you can afford, you should settle the balance in full at the end of the month prior to the due date.
Paying your balance in full at the month end prevents you from getting APR interest fee charges. This will in turn maximize your cash back rewards earnings. Additionally, it also entitles you to a rewards program that the card offers. For example, Discover it Cash Back Match card offers annual cash back match of the rewards earned at the year end provided that you pay your balance in full every month before the due date.