If you have a dining rewards credit card that offers a percent or points when you eat out, and you are willing to visit the approved venues, then these so called restaurant credit cards can help you with saving money. For instance, the Chase Freedom Visa offers 5% cash back on dining in certain restaurant for a set time frame. The CitiForward card offers reward points for dining. Many of the cash back credit cards on the market today can save the cardholder a lot of money when used in this way.
Click here to apply for the Chase Freedom credit card NOW!
You can also compare the customer ratings of these types of cards at JD Power.com. Read on to learn the details of dining and rewards credit cards.
How does a cash back credit card work?
A cash back credit card is a type of rewards credit card that gives the cardholder a refund on certain purchases. The refund is a percentage of the qualifying purchase, usually 1% to 5%.
These special credit cards often have specific types of purchases that they reward more than others. For those that eat out at restaurants a lot they should look for a card that highly rewards food purchases.
Some of these cash back cards rotate which purchases earn more rewards during certain quarters. If the cardholder has one of these cards, they should stay informed on which purchases offer the most cash back at any given time so they can take full advantage.
The refunds that the cardholder earns are typically applied directly to the cardholder’s account. If they have a high balance, this credit will help to reduce the balance. Some cards issue refunds through a check mailed directly to the cardholder. Not many cards issue refunds in this manor, but many people prefer them since they can use the refund money however they want.
Some cash back credit cards even let the cardholder have the cash back refunds directly deposited into a savings account.
This is a great way for the cardholder to earn interest in their refunded money, which will make the rewards earned even larger over time.
Who benefits the most from a cash back credit card?
These types of credit cards are usually only available to people with very high credit scores since they are meant for more responsible credit card users. Someone that uses their credit card for everyday purchases, instead of checks or a debit card would get the greatest benefit from this type of card.
What is one of the more popular cash back credit cards available today?
The Chase Freedom credit card noted above is one of the more popular cash back credit cards available on the market today. With this card, the cardholder can earn $100 if they spend $500 the first three months the card is active.
This card is the type that rotates which purchases earn the most back each quarter. These are called bonus rewards. The cardholder will earn 5% cash back up to the first $1,500 spent on these special bonus rewards. On every other purchase, they will earn 1% cash back with no limit to how much they can earn.
Chase also lets the cardholder shop through them online. They can earn as much as 10% cash back on these purchases.
The first year the account is active is a very opportune time for the cardholder. There are interest charges for purchases or balance transfers this first year. After this year has ended, the cardholder will have an interest rate between 11.99% and 22.99%.
The other two interest rates for this credit card are for cash advances and overdraft advances. The rate for these interest payments is 19.24%. There is also a penalty interest rate associated with this credit card. The interest rate will jump to 29.99% permanently if:
- The cardholder makes a payment late
- Goes over their credit limit
- Has a payment been returned?
- Have any of these things happen with any other account they have with Chase?
All of these situations will also charge the cardholder a fee. The fee for a late payment is between $15 and $35 depending on the balance of the card. The fee for going over the credit limit and having a check or payment returned is $35.
Make sure you always take the time to find good credit card providers, and compare which providers work for you!
- Where can I find dinner credit card offers?
- Is there such a thing as a dining credit card?
- Can a food credit card help me with groceries?
- What is a good restaurant credit card?
- What are some gasoline credit card companies?
- Slate from Chase Credit Card Review
- Chase Sapphire Preferred Credit Card Review