Top Reward Cashback Credit Cards Lock out Low Income Earners

Reward credit cards are designed to help consumers save money through a number of perks offered by the card issuers. However, for you to enjoy the top reward cashback credit card perks, you have to qualify for the card issuance. Although you may still qualify for a cashrebate reward credit card with low income, you may not benefit from the top rewards as they are offered to high spenders.

If you earn less than $60,000 annually, you will not qualify for those top reward cashbacks cards. In 2010, the Federal put in place a voluntary ethical code of conduct that was meant to protect small business entities from the rising processing fees charged on credit card. This is the reason why modest income earners cannot enjoy best reward credit cards and therefore, they are virtually locked out.

Initially, before this code of conduct was issued, small entities complained that they were compelled by credit card issuers to pay more in processing premium card. Therefore, Ottawa concluded that premium cards should not be marketed to consumers if they do not meet certain income level. In recent times, there has been proliferation of reward credit cards which are aimed at saving consumers money whenever they spend in purchasing goods and services with their cards.

High spenders can benefit from premium cards like Visa’s Infinite brands as well as MasterCard’s World brands. For you to benefit optimally from these premium cards, you need to spend more than $2000 per month, and this for the low income earner, is pretty large amount to spend. Considering that credit card debt still hurts many consumers, it would not be easy for them to spend such amount and these cards will remain to benefit the wealthy class and high spenders.

In order to qualify for reward cards like Capital One and Scotia, the card users need to have at least a personal annual income of $60,000 and a household income of at least $100,000. However, despite low income earners being locked out of the premium reward cards, they can still enjoy reward card perks that are designed for the modest income.

One of these cards is the RBC Cash Back MasterCard. You are only required to have an annual income of $15,000 for you to be issued with the RBC Cash Back MasterCard. Another low income reward card is MBNA’s Smart Cash card, which requires you to have at least an annual income of $35,000. The MBNA’s Smart Cash card offers a cashrebate of up to 5 percent on gas and groceries in the first 6 months of use. After that grace period, you are offered a 2 percent cashrebate in purchases.

Other cards that have been designed for the low income earners are Scotia Momentum No-Fee Visa, which requires a low amount of $12,000 annual income to qualify. Capital One Aspire Cash Platinum requires an annual income of $30,000 while CIBC Dividend Card is designed for consumers with an annual income of at least $15,000.

However, the perks are far much less compared to the premium cards. In addition, since the more you spend, the higher the perks you enjoy, for low income earners, definitely, they will benefit from less perks compared to the wealthy class.

Nonetheless, using these no-fee reward credit cards can help the users save about $10 to 20 dollars in every month and this can go towards meeting the card fees. The MBNA’s Smart Cash card gives card users the most cashrebate considering that you can get 5 percent on gas and groceries in the first six months spending.