Risks of Using Cash Back Credit Cards: Watch Out for These Costs
Saturday, 4 May 2024, 12:30
Risks of Using Cash Back Credit Cards: Watch Out for These Costs
Cash back credit cards are Americans' favorite type of card. Learn how these cards could end up being expensive, though.
1. High purchase APRs
Cash back credit cards often come with high annual percentage rates (APRs), which can lead to paying more in interest than the cash back earned.
2. Hoarding cash back
Waiting to use cash back rewards can result in decreased value due to inflation.
3. Getting a card with no annual fee
While no annual fee cards can be appealing, cards with fees may offer more lucrative benefits, especially for high spenders.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.