Cash Advances Credit Cards

Cash Advances Credit Cards

Cash Advances Credit Cards

According to a TNS Global Financial Services research study, 57.4% of rewards credit cardholders have cash back cards. Consumers can select from a large variety of cash back credit card programs that provide different benefits depending on individual spending habits.

Flat Percentage vs. Tiered Rebate Programs

Flat percentage rewards programs simply provide a steady rebate of approximately 1% on qualifying purchases, regardless of the amount charged throughout the year. On the other hand, tiered cash back credit card rewards start with small percentage rebates that increase only after cardholders meet specific spending thresholds. Tiers may also be set based on specific purchase categories.

For instance, American Express’ Blue Cash program offers 1% rebates on everyday purchases until the cardholder spends $6,500. After that, the rebate jumps to 5%. However, the card only pays 0.5% cash back on other purchases until that spending reaches $6,500, at which time the reward jumps to 1.5%.