The credit card industry is a competitive industry. As a matter of fact, new credit cards are being promoted on almost a daily basis that have more creative offers. If you know what you are doing, you can put yourself in a position where the financial institutions are paying you to use their credit cards. Some consumers consider a cashback credit card the best type of reward credit card. I mean, what can be sweeter than that check arriving in the mail.
Do you think there is a catch to this? Well, there is. You just have to know how to handle the cashback credit card. Read the fine print and make a few rules of your own to make you the winner and laughing all the way to the bank.
Many reward credit card offers to give you options for how you want to spend your bonus points. So make sure that cashback is one of your selected options if you need more cash
Not all reward credit card offers include a cashback feature. So it is recommended for you to search for credit cards online that provide you with the cash rebate. You also need to be sure it includes the cashback for all purchases. The cashback credit card offers usually come with no annual fee.
To make the most of a cashback credit card, you need to charge just about everything. That’s correct, everything including the items that you normally pay for. This includes the fast trip to a drugstore, groceries, and a hardware store.
The trick is to set aside the amount spent each time you use your card. For instance, you might opt to deduct the amount spent from your checkbook and use your check register account to keep track of it. This will enable you to pay the full balance due at the end of the month when the bill arrives. You don’t want to pay interest that will eat up any savings you’ve built-up.
The result, … you’ve accumulated bonus points, then after you reach the required redeemable level, you’ll receive a check in the mail. Some cashback credit card offers to issue a check each time you reach a limit of $25, while others issue a check at the end of the year.
Either way, if you follow this simple plan, you can be the winner here. A cashback credit card can save you hundreds of dollars a year.
Oh, one more thing. If you want to be even more of a winner with this plan, use that cashback check to open an interest-bearing savings account. That would make the cashback credit card the ultimate reward credit card!