January 4th, 2011

Not In Their Debt: The Problem With Cash Back Cards

cashback card

**Today’s guest post is contributed by LearnVest **.

Cash-back reward programs on credit cards aren’t too good to be true—in truth, they’re inspiring more debt among their users than rewards of cash.

Debt Now, Cash Soon.

A study run by three economists and mentioned in the Wall Street Journal found that among 12,000 credit card accounts, those users offered cash-back rewards not only spent more, but assumed more debt as well. From the Journal:

The extra debt could mean two things: People spent more overall or they shifted spending to their cash-back rewards card from some other card in their purse or wallet. Sumit Agarwal, one of the co-authors, says the study found both. That means that, for a lot of people, the benefit of a cash-back reward is negated by increased overall spending and debt.

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September 28th, 2010

Points, Miles, And Cash Back: The LV Guide To Credit Card Rewards

credit rewrads

At LearnVest, we believe that you should always make money on your money, from beginning to end: You should earn interest in a savings account before you spend and then credit card rewards once you do spend. In order to help you make the most of your money, we bring you the 9 rules you must read for rewards cards.

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August 11th, 2010

Wednesday Trends in Credit Cards & Debt

wells fargo thumb

One major issuer didn’t get away from consumer watchdogs this time, and paid a pretty hefty price. A judge ordered Wells Fargo to pay $203 million in restitution to Californians for manipulating overdraft fees.

Also, check out our favorite personal finance picks from the web.

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June 23rd, 2010

Want MORE Cash Back? One Company Is Listening…

While credit card perks are getting slashed and debit cards and checking accounts face looming fees, the start-up Perk Street Financial will soon be offering the irresistible upgrade to double their debit card’s cash back program to 2% cash back on every dollar of debit card purchases the cardholder signs for. If you’re looking for […]

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June 7th, 2010

REVIEW: Chase RealCash Debit Card

If you crave the rewards a credit card offers but need the security of a debit card, Chase’s new RealCash Debit Card comes close to a perfect union of the two. (Chase is a Credit Karma partner.) RealCash’s cash back program turns your debit card into a moneymaker, minus the risks of paying interest, getting […]

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May 28th, 2010

Getting A New Credit Card

There are many reasons to want to get new plastic: maybe you want another open credit line, or need a back-up credit card, or are interested in bonus rewards or cashback. Whatever the reason, getting a new credit card is exciting, but can also lead to a bad decision of getting the wrong card, getting […]

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February 1st, 2010

Review: Retirement Rewards Credit Cards

The next wave of rewards card programs is flooding the market, offering what’s termed “retirement rewards”. These rewards offer consumers the opportunity to turn points into cash to be invested in their retirement fund. The more familiar, traditional rewards programs of airline miles and cashback offers will have to move over for the innovative programs […]

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January 14th, 2010

Redeem your American Express Rewards Points To Pay Your Taxes

American Express (a Credit Karma advertiser) introduces the industry’s first rewards points-for-taxes program that enables cardholders to trade-in rewards points to pay their tax bills. AmEx is offering the sensible and recession-friendly opportunity to use rewards points on a necessary expense like taxes as an alternative to spending points on hotel and flight upgrades.

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