If 5% cash back sounds good, remember that by paying month to month by this encouraging 5% back, you're not really saving money. And that 5% back is made to make you think you're saving well 5% on anything you buy. If you spend more than you can pay back by the months end, this really only turns to be a one time 5% reduction in interest on that months purchased goods. Going from 29.9% (Highest rate allowed) to 24.99% isn't much of an decrease. Realistically of course the compounding percentage rate is APR so 24.99% / 12 = about 2% a month. And as I mentioned earlier, this is compounding interest, adding onto itself, each month. Effectively, you aren't saving any money but rather adjusting your immediate rate, which only saves those with the foresight to budget and only buy what they need anyways.
If anyone, has a more precise method of calculating this out and explaining, I'd love to hear it. I truly believe knowledge is power, and wish that more people cared about their finances, time and spending as a consumer.
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