What is it and how to take advantage of it?

Every day new cards come onto the market promising very good returns and additional benefits to their users; and one of the most popular is the CashbackToday we explain what this resource consists of and how to make the most of it.

What is Cashback and how does it work?

Cashback is a benefit that many companies include in credit or debit cards, as well as in other financing resources. It basically consists of the refund of a specific percentage on a purchase that the user made with the card.

For example, if a card has 6% cashback, following making a purchase, you will get back 6% of the total amount you paid.

This benefit can be given in cash or credit that will be useful to the user for future purchases using their card. It is important to highlight that both the cashback percentage and the terms and conditions of the same vary from card to card.

Benefits of credit cards with cashback

Own a credit card with cashback It has many advantages, as we will see below:

• Saving: Thanks to cashback, users pay less for their purchases, which allows them to accumulate money in their account and minimize the amount to be paid at the end of the month.

• Greater control over the budget: Cashback cards allow users to know how much they will save with each purchase and better manage their personal budget.

• Additional rewards: Some cards offer additional discounts and specific offers on selected stores or products, such as clothing, travel or restaurants. This is in addition to the savings already provided by the cashback available with each purchase.

Cashback Examples

If a person has a card that offers a 4% Cashback, they would have the following benefits.

• Save $4 on $100 purchases.
• Save $40 on purchases of $1,000.

This same model can be applied to all cashback cards depending on the percentage they offer.

What to consider when choosing a cashback card?

The first and most important thing is to take into account the requirements to obtain the credit card.

Some options like A story They offer their users the possibility of accessing financing with few requirements, even if the applicant does not have a good credit record. However, other alternatives have somewhat higher requirements.

Another aspect to watch out for is the percentage of cashback they offerSome cards may offer higher cashback percentages, but the benefits may only apply to specific products or stores, so it’s important to read the terms and conditions of the service carefully beforehand.

Another important aspect is to review the commissions and fees from the card.

For example, the Stori card charges fees for card replacement and late payments, but It does not generate usage fees or annual fees. This, along with interest rates, are some of the most important data to pay attention to.

Finally, you should find out if, in addition to cashback, your credit card offers you Additional benefitssuch as discount coupons, points programs or other incentives.

Comparing different options will allow you to choose the financing method that best suits your needs.

And now you know. Cashback is one of the best benefits you can get, so get ready to make the most of it on your next purchases.

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