A lot of credit card companies offer special programs and discounts to entice more consumers to use their credit cards. When we use their cards, or the ones called cash back credit cards, we get to have discounts for the purchases we make.
Many of these cash back cards could give up to 5% cash back in purchases, mostly at supermarkets, gas stations, and other stores. This is like getting a 5% discount on the things you buy or the services you avail – definitely big savings on our part!
Credit cards also give out rewards points. We get to earn a certain number of points for a certain amount that we used the card to purchase. Through these accumulated points, we get to convert them into items, like cameras or other good looking stuff, depending on how many points we earn.
They also have other programs, like frequent flyer miles. Every time we use our credit card, we get points that we could exchange for free air travel, free products or services, and other fantastic things. These points must be consumed as soon as possible though, since some companies have expiration dates on this or they could cancel them if the card has been inactive for a long period.
Although we would think that we have made the best deal by using credit cards in our transactions, we must not forget our credit limits. Cash back cards are only best for those people who can pay their credit bills in full and on time. Otherwise, we would all be in debt just to get the latest gadget we earned through the rewards system. And to think, it would have been better if we had paid for the thing in cash than have an outstanding amount three times what it would have cost us!
Sometimes, these cards can also have restrictions that only apply to a certain amount of money spent. So, be on a watchful lookout for that and avoid the pitfall. But, if we are resourceful enough, we could actually find rewards cards that are best suited to our lifestyle and thus give us the best deals. It is only a matter of choosing the right one.
So, if you do not pay your bill full in a month, it might be better off to get a non-rewards card with a lower interest rate. Otherwise, it would cost you a fortune just to get that free stuff as a reward and your expenditures would a mile higher than the money you earn.