Cash Back Back On Credit Card Interest? | CreditShout

Cash Back Back On Credit Card Interest?

By Kevin / August 28, 2010
What Happens If I Only Pay The Minimum Payment On My Credit Card

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Q: I cannot always pay my credit card bills in full. Those interest charges are pretty high. Is there any way I can earn cash back on credit card interest charges?

Most consumers dread the interest charges assessed to their credit card accounts. But now, there’s a card where account holders can actually benefit from the interest on their account. Earlier today I mentioned how we never recommend carrying a balance.

However some of you may not have the option for business or personal reasons and may have already amassed a large balance.

The Discover® Motiva(SM) Card offers cash back rewards like other Discover cards, but also issues rewards to cardholders for timely payments based on their interest charges.

Every time that a cardmember makes six consecutive on-time payments, Motiva will deposit a “Pay On-Time” Bonus into the member’s cash back account that is equal to a full month’s interest.

So suppose that the annual interest rate on the card is 20% and the account balance is $15,000. If six on-time payments in a row are made, the cardholder would receive $250 in his or her cash back account (or 20% of 15,000 divided by 12).

The Pay On-Time Bonus comes in addition to normal cash back bonuses on all charges of up to 1%, as well as 5% to 20% cash back on purchases made through Discover’s online shopping mall.

New Discover Motiva cardholders will get an APR of 3.99% on purchases for the first 12 months and a similar rate on balance transfers for 15 months. You can read our full review of Discover Motiva here.

The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone.Additionally, the opinions of the commenters are not necessarily the opinions of this site

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