Emily Clarke

4 Benefits of Earning 1% Cash Back on Transactions

Cash back is a compelling perk many banks and credit card providers offer. The concept is simple: You spend money, and the bank gives you a percentage of qualifying purchases back. Rates can vary, but 1 percent is the norm.

Other reward cards exist, but why find a card that offers 1 percent cash back? Here are some benefits worth considering.

Real Money Value

One of the most significant benefits of cash back cards is getting real money. You might get offers for travel cards that offer thousands of points or miles in return for spending. While those cards can be beneficial, the value of those rewards can fluctuate.

That's not the case with cash back. You're getting money with fixed cash value. It's easier to understand and doesn't require complicated conversions. What you see is what you get! When it comes to banking for contractors, simplicity makes all the difference. If you are looking info about banking for contractors, visit this website.

Flexible Redemption Terms

Another perk is the ability to redeem your cash how you want. Exact redemption offers can vary from one bank to the next. However, you can generally choose to apply your cash back as statement credits. It's a chance to lower your balance directly from your rewards!

Some banks also allow you to use rewards to cover online purchases. You may even have the choice to get a gift card or check. It's far more flexible than applying points to airline ticket purchases.

Higher Rates on Specific Purchases

Some banks offer higher rates on a specific type of purchase. That gives you more opportunities to maximize your rewards. For example, banking for contractors can offer double the cash back percentage for purchases at home improvement stores or material suppliers. You may also see higher rates for dining, groceries, gas, etc.

An Easy Way to Save

Finally, cash back gives you an easy way to save. This perk applies most to cards that you use for everyday purchases. Many financial institutions let you transfer cash back to another account. Send it to savings, and you can turn your standard purchases into an avenue for financial responsibility.

Author Resource:-

Emily Clarke writes about sales and business automation tools for construction companies and contractors. You can find her thoughts at software for contractors blog.