How does cashback work?

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yeyeman9
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How does cashback work?

Postby yeyeman9 » Fri May 25, 2012 6:15 pm

Ok, so I am a credit card newb. I actually don't have any credit right now. I am going to start my first full time job in a few months. So I am currently looking for a credit card to start with, my question is, when they say "cashback" where is this "cashback" going to? How does it work?

I mean, do they literally deposit the cash back to my account, or is it in credit card credits or something?

Also, what kind of credit card would you guys suggest to start off with? Given I don't have any credit yet...

Thanks a lot!


yeyeman9
Green Member
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Posts: 14
Joined: Fri May 25, 2012 6:13 pm
Location: Tampa, FL

Postby yeyeman9 » Sat May 26, 2012 2:13 pm

Nvm. I found out. For those of you who don't know, basically you are given a statement credit. What this means is that for example, let say you have $200 in cash back. If you pay for something that costs $1,000, you only need to pay $800 for it if you use your $200 in statement credit. That's basically it.

Cheers!

Money card
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Postby Money card » Sun May 27, 2012 11:09 pm

Let's see if I can answer your question.

Cash back from credit cards can be redeemed for gift cards, charity donations and often times you can request a check or statement credit.

Let's say for example you have a Blue Cash card from American Express and you need some items from Macy's, JCPenney's or Sears. These are department stores. So if you spent $115.00 at Macys, $65.00 at Sears, and $35.00 at JCPenney's you would get 2% cash back on all of these purchases because the Blue Cash card gives 2% cash back for department store purchases.

But now let's say you bought something from the Gap, J Crew, Bed Bath and Beyond and you ate lucnh at Ruby Tuesdays. You would get 1% back on all that. It will say what you have earned on every statement.

Every card works different.



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