Its doubtful anybody is telling you to actually start using credit cards more often. But credit card use can be a very good idea - and one that actually pays.
San Francisco State University senior Amber Zuckswert applied for an Amazon.com VISA card when she was buying her textbooks online. Amazon offered her a $30 credit for being accepted, as well as three percent cash back for all purchases made from the online retailer. One percent of spending is rebated on purchases made anywhere else.
Now Ms. Zuckswert puts all of her spending onto her Amazon card. 'The cash back is really more fun than anything', says Zuckswert, 'and every two months or so I get a $25 gift certificate to use online.' The dance major says she often saves her gift certificates to purchase textbooks at the start of a new semester.
The Amazon card is just one of many cash back cards. Here are some examples of other cash back cards as listed on credit information website Cardweb.com:
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- The Chase Plus Rewards Visa Card - offers users 5% cash back at grocery stores, gas stations and drug stores. Now you can fight off rising gas prices. This Chase card offers 1% cash back on any other spending, as well as a 0% introductory APR on purchases and balance transfers. There is no annual fee.
- The Blue Cash American Express card - returns 5% cash on qualified purchases, no annual fee and a flexible payment schedule. To receive this card you must have excellent credit.
- The Citi Simplicity Rewards card - gives holders 5% cash back at supermarkets, drugstores and gas stations, as well as 1% on all other purchases. The Simplicity card has no fees for late payments, but be careful, late payers might see their APR suddenly jump a few percentage points.
Many of these offers are subject to other requirements. Always read deep into the credit card application before accepting an offer or following up on any information from this article. Always use credit with caution.