Cash-Back Credit Cards
Cash Back Credit Cards
Can I add an authorized user to leverage their spending for cash back rewards?
Yes, an authorized user can be added to a primary account that will allow the account holder to accumulate cash back rewards from the spending on that additional card. Authorized users are typically spouses, partners or children but can include any trusted individual designated by the primary account holder.
Where do I find the cash back rewards information on a credit card?
The specific terms for a cash back credit card, such as cash back percentages earned for various types of spending, annual fees and interest rates can be found within disclosure information on the issuer’s website as well as within the cardholder agreement that is sent to new customers upon account opening. Ultimately, the cardholder agreement is the governing document for the account and supercedes any other disclosures.
Is it possible to pay off other credit cards with a cash back card?
No, one credit card can not be used to directly pay off the balance of another credit card. This prevents individuals from gaming the system and using payments for amounts owed on other cards to earn rewards points, miles or cash back without spending money for new purchases. Balance transfer and convenience checks can be used from one account to pay down another but these payment methods do not earn rewards.
Can you earn cash back rewards in Bitcoin?
Yes, there are recent cash back rewards credit cards that have been launched by fintech companies that allow rewards to take the form of Bitcoin rather than straight cash back. Issuers such as BlockFi, Gemini and Upgrade now offer cards that earn cash back in Bitcoin, while Sofi offers a rewards card that allows points to be redeemed for cryptocurrency.
How do I stop getting cash back credit card offers in the mail?
The best way to stop getting credit card offers in the mail is to sign up for the national do not mail registry at DMAChoice.org or Directmail.com. Once an individual adds their name and mailing address to this list junk mail should stop within a few months and the protection lasts for five years, though opt-in and opt-out choices can be made as needed at any time.
Discover card is a credit card network that also issues their Discover-branded cards directly to the public rather than through a network of member banks as with Visa and Mastercard. Discover card launched in 1986 as the first card offering cash back on all purchases with no annual fee.
Subprime Credit Card
A subprime credit card is a product tailored to the risk profiles of individuasl with low credit scores or no credit history. Subprime credit cards typically have much higher interest rates compared to those offered to individuals with higher credit scores and also often charge annual fees and have lower credit lines.
Deadbeat was a slang term used by the credit card industry in the 1980’s and 1990’s to describe cardholders who paid their balance in full each month and did not incur interest charges on outstanding balances and thus were considered freeloaders. In subsequent years card issuers came to realize that this type of customer actually presented a profit opportunity since they had very low default rates and generated significant revenue through merchant swipe fees, especially when using rewards credit cards.
Credit Card Encryption
Credit card encryption involves security measures with cards, payment terminals and data transmission to prevent theft of card or personal information on credit and debit cards. Encryption involves the process that scrambles or encrypts data before being transmitted for settlement and subsequently decrypted with a key by card networks and banks once transmitted and received by the end party.
Zero percent refers to the interest rate during an initial promotional period following the opening of a credit card account. Promotional introductory periods offering zero percent interest often span 12 - 18 months but can vary depending on market conditions. Zero percent interest can apply to new purchases, balance transfers or both.
Plain Vanilla Card
Plain vanilla credit cards, also known as no-frills credit cards, are cards that offer no rewards of any kind on spending or any promotional introductory rates on purchases or balance transfers. Congress mandated that all major card issuers make plain vanilla cards available as part of their product offerings as part of the Credit Card Act of 2009.