How do Credit Card Rewards Work?
Credit cards are one of the most important financial tools you have at your disposal. They can either make your financial life or break it. If you know how to work the system and pay off credit cards each month, certain cards can actually make you money when you spend with them.All of that sounds a little weird though when you think about it. How can a company offer you, say, $500 when you sign up for the card and spend money? Or how can credit card companies give you 2% cashback on all purchases?
Obviously, the money has to be coming from somewhere, so how are banks getting all that cash to keep up with those rewards? There's 3 different ways.
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