Credit cards with cash reward programs are a great way to save money on your everyday purchases.
Since the Credit Card Cash Rebates are applied to all of your purchases, you can shop as usual without worrying about buying from specific stores, and you’ll easily get a 1% cash rebate on everything you buy.
Other credit cards offer higher cash rebates if you make purchases at specific types of merchants like Gas Station Rebate Cards or grocery store rebate cards, so you can save even more money on common everyday purchases.
However, many cash reward cards have limiting tiered rebates, so you won’t always earn the full rebate with all of your purchases.
For instance, you might only earn a full 1% rebate after your spending level reaches $3,000 in a year, having to settle for a 0.5% rebate for all of your purchases under $3,000.
In other cases, you may earn 1 point per $1 spent, but only be able to exchange 10,000 points for a $100 rebate at a rate of 1%, while a $50 rebate may take 6,000 points, which reduces your rebate percentage to 0.83%.
Make sure you choose a card with a flat rebate or an even 1% exchange rate, and this will easily be avoided.
It’s also important to get a Credit Card with No Annual Fee, as having to pay an annual fee will cut into your savings.
Many cash reward cards also come with 0% APR Introductory Rates on Purchases, which you can take advantage of to make larger purchases and increase your savings, but you’ll want to be sure that you pay off any balance before the introductory rate expires and continue to pay your monthly bill in full after they have expired, because any unpaid balance that’s collecting interest will quickly reduce your savings to nothing.
As long as you make your monthly payments in full and simply use your credit card for all of your purchases, you’ll easily save hundreds of dollars a year just by using a cash reward card.
Cash Reward Credit Cards help you save money on your everyday purchases, without having to change any of your shopping habits.