Modest Income Earners Are Locked Out From Top Reward Cashback Credit Cards

Although you can have a reward credit card for cash rebate with a low income, it is clear that if you earn less than $60,000 per year, you may not qualify for the top reward cards. There has been increased trend in issuance of reward cards as consumers seek for ways to save money amidst an economy that is ailing from the past recession. Premium cards like MasterCard’s World brand and Visa’s Infinite brands are designed for the highest spenders.

These cards come with annual fees and if you are to make any meaningful gain from the perks, you probably have to spend at least $2000 in a month. This is pretty high for the middle and low income earners. In addition, bearing in mind that credit card debt continues to haunt many card users, these perks are only likely to benefit the wealthy class and higher spenders.

Reward cards like Example Three and Scotia require a card user to have at least an annual income of about $60,000 for an individual and for a household, it is $100,000. If you do not have this income, then you are not likely to qualify for one. One of the reasons why low income earners are not able to benefit from the top reward cards is because the Federal introduced a voluntary code of conduct that is designed to help protect small entities from the increased processing fees of credit cards.

Despite these regulations, the credit card issuers have developed reward cards designed for the low income earners. One such card is the RBC Cash Back MasterCard, which requires a minimum annual income of $15,000. MBNA’s Smart Cash card is a good option for the card users who earn at least $35,000 per year. This card gives back 5 percent cash rebate on groceries and gas in the first six months. After that you get 2 percent on purchases.

For the frequent flyer, getting a reward credit card can help save money in making trips to different destinations with their favorite airlines. Business travel in increasing and this is being demonstrated by the increased business class seat in major airlines. When choosing a flyer credit card, you need to ensure that you can benefit from the program. Your spending on flight trips will determine whether you will be able to enjoy the reward perks.

Some of the perks may require you to spend certain amount of money before you get them. The US Airways Premier World MasterCard allows a traveler to earn miles on purchases. With this card, a traveler may earn 2 miles in every dollar that is spent on US Airlines. However, for other purchases, a card user earns 1 mile in every dollar that is spend.

It is important to choose a frequent flyer reward card that can earn you miles in other purchases so that is not limited to only travel expenditures. In essence, using cash back reward cards can help get some cash back from your purchases and although the low spender may not benefit much, they may be able to get about $10 to 20 dollars per month. This is an amount that can help offset the card fees.