There are dining credit cards that will help the cardholder earn money whenever they use their credit card to buy food, or reward points to specific restaurants. Some of these dinner credit cards offer a higher percentage of money back on regular grocery purchases while some focus more on restaurant charges.
These credit cards are a great way for people with high credit scores to get more out of their credit cards. Staying on top of monthly payments with this type of card is very important if the cardholder wants to maintain their good credit score. To learn great ways to manage your credit cards responsibly go to MyMoney.gov.
Why would someone choose a cash back credit card?
A cash back credit card is another type of rewards credit card except with this card you do not earn rewards points that can be exchanged for frequent flier miles you earn a certain percentage of the money you spend back, kind of like a rebate. The amount of money the cardholder will earn with each purchase varies by card so looking at the fine print is very important.
These reward specific dining credit cards are a great way for someone to save money and cut back on their food expenses. Many Americans are eating at home less and restaurants can get expensive, especially for people with families, so many of these cash back cards offer a higher cash back percentage for restaurants. Many cards are more general and offer a certain amount of cash back for grocery purchases.
Exactly how will I earn and receive my rewards?
Earning the cash back or restaurant points is easy; you just use the credit card as you normally would. The card provider keeps track of how much cash you earn for certain purchases. Once you reach a minimum amount of earned cash, you will be issued a refund. If you are receiving points you will be able to redeem those at the specified restaurant.
The percentage of money the cardholder can earn with each transaction depends on the type of purchase being made. While most cash back credit cards allow the cardholder to earn 1% cash back on all transactions some purchases qualify for a higher percentage, sometimes up to 5%.
To get as much money back from this card as possible the potential cardholder should track their spending habits for a month or so before applying for a new card. By tracking their habits, the cardholder can figure out what types of purchases they make the most and find a cash back credit card that offers the highest return for those types of transactions.
The cardholder should also decide how they want to receive their refunds. Most of the time refunds are posted to the cardholder’s account in the form of a credit. This is a good option for someone that has a balance on their card since they will basically be paying off their credit card balance by using the card.
The more popular refund option is a check mailed to the cardholder. By receiving the money directly, the cardholder can use their refund in any way they want. The most responsible refund option would be having the refunds deposited directly into some type of savings account where they could earn interest. This is a great way for the cardholder to save even more money.
What is an example of a good cash back credit card?
Citi Bank currently offers a cash back credit card called the Citi Forward card. This card lets the cardholder earn cash through a points system rather than a percentage system. Someone that has a regular rewards credit card will be familiar with the points system.
The cardholder earns five points for every dollar they spend on entertainment and restaurant purchases and one point for every dollar spent on all other purchases. Once the cardholder has earned 10,000 points, they can redeem them for $100.
This credit card has no annual fee and offers a special zero percent interest rate on purchases and balance transfers for the first year. Depending on the cardholder’s credit score, their interest rate after the first year will be 12.99%, 18.99%, or 22.99%. If the cardholder makes one late payment or has a payment returned their interest rate will immediately be changed to 29.99%.