Like when a card says it offers a percentage of cash back
Wth does that even mean? If I borrow 200$, then I pay back 200$ or more, so what is cash back?
In: 5
For most credit cards it is done with a point system.
For example, if you spend $300 you get 3 points.
Sometimes they give you more points depending on what you purchase. They will usually advertise this, but for example, restaurants and gas are usually at a higher percent.
Once you earn a certain amount of points, you can redeem them for “cash” and apply it to your balance.
Example: 500 points = $5.00, which is then subtracted from your credit card balance.
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