Chargebacks911® COO Weighs in: Should You Consider a Cash-Back Credit Card?
Cash back credit cards are a popular option for those who prefer more immediate credit rewards, but they aren’t for everyone. In response to this reality, Chargebacks911 Co-Founder and COO Monica Eaton was asked to comment on the value of cash back credit cards in a recent post for Real Simple.
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According to the article, credit cards boast important advantages like convenience, fraud protection, payment grace periods, and systems to track your spending. Additionally, many credit cards offer lucrative rewards like points, miles, and cash back benefits.
Cash back credit cards, for example, are ideal for people who don't want to pursue travel rewards and prefer their rewards in cash back statement credits or bank deposits. The trouble is that some rewards are only good so long as you use them. Hoarding points can be a bad long-term plan.
"Points aren't always permanent," said Monica. "Depending on your card company, your points could expire after five years and airline credit card miles often have expiration dates."
You should also be wary if you need to cancel one card and switch to another, she explains. "You ought to be very careful, because not all points are transferable. By contrast, a cash back card doesn't have expiring benefits. As long as you keep your account open and in good standing, you'll continue to derive the cash back benefits."
