Cashback or low interest:
Cashback is generally defined as the complimentary points for purchasing by using the credit card. The credit card companies’ gives this rewards for each purchase as payback to the cardholders. It is also known as an act of linking up with the merchant and requesting cash while making the transaction that provides the buyer with cashback at time of purchase. This incentive is used to attract new customers and keeping old customers. Usually, Cashback reward percentage will range up to 5% of the transaction and some transactions may also offer double reward percentages through merchant partnerships.
The low-interest is a small percentage charged on the amount borrowed. The low-interest rates are intended to prompt the economic growth by creating it lower to borrow money and spend them on both physical and financial assets. The special reason for low interest is the negative interest rate. The excellent credit score is usually mandatory to get the low-interest financing.
To know which one is better?
- Understand cash back rewards cards.
- Evaluate low APR offers.
- Know the credit score.
- Look for extras and perks.
The components included in the cashback or low-interest calculator:
- Cashback amount: The amount received as cashback.
- Interest rate: The interest charged on the credit card.
Low-interest rate offer:
- Interest rate: The low-interest rate charged on the loan.
- Auto price: The purchasing of property or vehicle.
- Loan term: The time period of the loan.
- Downpayment: The payment made while purchasing the property or vehicle.
- Trade-in-value: The trade value of the property or vehicle.
- State: The location where the person stay.
- Sales tax: The sales tax paid on the property or vehicle.
- Title, registration and other fees: The fee paid for registration etc.
Use this calculator for help. It will give the total interest saved from the low introductory rate. It computes cold and hard figures to distinguish between cash back and low interest but keep in mind that take into account outside factors wisely.