I happened to pass by a gas station today that had a sign advertising a credit card with a 5% cashback option. While there was probably a catch since I whizzed by the advertisement sign, I was with another person who made a comment on how he felt that credit card rewards with points such as airmiles are a waste in comparison.

I personally prefer cashback options, although from a value point of view in most cases the reward options you receive seems to be almost inline with each other. The only main difference I see is that with one option you are forced to get something that you don’t necessarily want.

One thing is for sure though, I hate having to pay for those premium reward options and would usually avoid them if they require any kind of additional fee.

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Like many others, I constantly receive mails and offers from companies who want you to sign up for their credit cards. For myself, I have always been a one credit card person as I never really saw the need in requiring more than one and figured that it would be easier to manage my credit card bill this way too. Recently, I received a mail for a business credit card and most of them usually emphasize on how I am pre-approved for a high credit limit or that they have a low interest rate. Neither of those benefits really interests me as my current limit is good enough for my needs and considering that I always fully pay my bills on time the low interest rate is kind of pointless.

What caught my attention about this offer was how they were emphasizing the cash rebate program where you could receive up to 2% of your annual purchases back in the form of credit. Considering the volume of purchases that I do in a year, this actually got me thinking as it does seem like a good benefit. Currently, I receive airmile points for my purchases and to be quite honest I personally think the rewards compared to how much I spend is pretty low when you look at it from a dollar value. Like always though, you shouldn’t jump into anything hastily and I will definitely be reading all the fine prints. We’ll just have to wait and see on whether or not I will be carrying two credit cards in the future.

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