Contrary to popular belief, credit cards do not always lead people to debt. While the temptation to use them is strong, the choice to do so usually depends on the card holder. As long as you use them wisely and properly, they will serve as a viable financial source. And, with cash back credit cards becoming more popular, you now have more opportunity to earn extra money with every purchase.
The rules are not that simple, however. Unlike rewards from online shopping that you can get in a straightforward manner, getting cash back perks from credit cards requires some work. In order to make the most of them, you should keep the following pointers in mind:
Know how much you will earn. Different credit cards offer different rates, which would vary from 0.5% to 1.5%. Others also base the amount to be awarded on the type of spending you make. Certain credit cards, for example, offer a higher rate if you use them at the supermarket and even bigger returns if you purchase fuel through them. There are also instances where the rewards depend on your total spending, regardless if it is a straight or separate transaction.
Know more about the other details. Remember the fine print that you are supposed to read in all your dealings, especially those that involve money? Yes, cash back credit cards have them too, and knowing all about these things will enable you to maximize your earning. Some of the terms that you should be aware of include.
The rules on getting rewards. Most credit cards would only give perks if you pay your bills in full every month. If you fail to do so you could incur charges instead and all the points you have earned could be wiped out. This is why you have to make sure that this is not the case with your card, because you would probably be better off with low interest rates and 0% introductory offer.
The annual fee is appropriate. Some cash back cards charge as much as $35 yearly fee, which is undeniably higher than those imposed on regular non-earning cards. If this is the price to pay for extra money rewards, then you have to make sure that the perks are really good. Otherwise, you might as well settle for the traditional kind sans the bells and whistles.
The terms on shopping transactions. You have to make sure that you will get rewards regardless of how much you spent on a single purchase. After all, you are going to pay for all your shopping expenses in a month’s time, which is still money coming out of your pockets. If you only start making points after accumulating a certain amount, it may turn out to be a deal that is not as sweet as you would have hoped it will be.
Money that you worked really hard to earn is not something you would want to give away so easily. Although you would temporarily forget about all your hard work with plastic money on hand, it is best not to go overboard with your spending. You should also ensure that you get more value for your money.
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