There are a lot of people who give a negative reception towards credit cards. They perceive it as a tool for guiltlessly spending money. Some are aware of the interest rates that they have to pay to keep the card going, which in turn, will make them spend more money.
If you think that credit cards are just for spending money, think again. Reality has it that there are cash back credit cards that give cardholders, most especially big shoppers, a chance to get rebates from their purchases. If you possess one of these, here are tips on how to get some of your money back while spending.
First, you can always go for the “double the points” option. If your card is sponsored by establishments such as gasoline stations, supermarkets, diners, boutiques and drugstores, using it for every purchase or transaction will earn you points that you can convert into reward items.
Or better yet, you can use your card in purchasing items for your friends, relatives and even neighbours. Once the purchase is charged to your credit card, you can be at ease as far as paying interest charges are concerned.
Moreover, do not limit your credit card use to shopping alone. Why not use your cash back credit cards in paying bills as well? Since these bills arrive technically the same time every month, using your cash back card to pay all of these is a great strategy to pile up those points with ease.
You may also earn money from your credit card by coursing your company or organization reimbursements through it. When these reimbursements have been deposited, you need not worry about paying the interest charges of your card as well.
Paying the entire interest rate of the credit card instead of carrying over some balance can save you some money as well. Because most rewards program-based cash back credit cards have a higher annual percentage rate, you may utilize it in skipping the interest rates and in turn, earning some cash.
However, be aware of the limits that these reward credit cards have. Yes, you can accumulate reward points by using them in any permissible transaction; however, these can be forfeited if they are not redeemed before a certain date. The sad part is that credit card companies do not allow unclaimed points to be carried over after the blackout date.
Therefore, if you are keen in applying for one, choose those cash back credit cards that offer flexible point collection plans. Through these credit cards, you will earn more by spending more.
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