How to Earn Cashback & Save With Your Credit Card
Now a days, lot of people carry credit card in their wallet. In previous time, credit card wasn’t so normal. But, now people own multiple credit cards. Every credit card offers great different deals and benefits. So, lots of people have started using credit card for day to day payments. We are going to discuss one such benefit. We earn cashback by spending money using credit card. Earning cashback and saving money with your credit card can be a smart financial strategy. But you need to use the card wisely. Here’s a step-by-step guide on how to earn cashback and save with your credit card:
1 Choose the Right Credit Card:
You have to search a credit card which offers cashback rewards as some cards offer cashback on specific categories like groceries, dining, or gas, while others provide a flat cashback rate on all purchases. Look for cards that match your spending habits and lifestyle.
2 Understand the Terms and Conditions:
Carefully read the terms and conditions of your credit card to understand how the cashback rewards work. Pay attention to the cashback rate, annual fees, and any introductory offers.
3 Use the Card Responsibly:
To maximize your cashback earnings and avoid debt, use your credit card wisely. Pay your statement balance in full and on time each month to avoid interest charges.
4 Set a Budget:
Create a monthly budget of expenses to track where you spend money. Knowing where your money goes will help you to choose which credit card to use for different types of purchases.
5 Use the Card for Everyday Spending:
Use your cashback credit card for everyday purchases such as groceries, gas, dining out, and other routine expenses. Just don’t overspend to earn cashback; only charge what you can afford to pay off in full.
6 Monitor Promotions and Bonus Categories:
Keep an eye on any promotions, bonus categories, or limited-time offers provided by your credit card issuer. They may offer extra cashback for specific purchases during certain periods.
7 Redeem Your Cashback:
Check your cashback balance regularly. Different credit cards offer different ways to redeem cashback rewards. You can typically redeem your cashback rewards as a statement credit, a check, or use it to offset your card’s balance. Some credit cards may also offer the option to redeem for gift cards or merchandise.
8 Automate Payments:
To avoid late fees and interest charges, set up automatic payments to ensure you never miss a due date. This helps you in maintaining a good credit score.
9 Monitor Your Credit Score:
Regularly check your credit score to ensure that using a credit card responsibly is positively impacting your credit history.
10 Avoid Cash Advances and Balance Transfers:
Cash advances often come with high fees and interest rates, so avoid using your credit card for cash withdrawals. Balance transfers may have fees as well and may not earn cashback.
11 Transaction reversal/Returns:
Sometimes, customers end up returning an item or cancelling their booking while doing online shopping, flight booking, etc., . Under such circumstances, cashback may be refunded back to your card, but this is different for each credit card issuer. Hence, it is best to check in with your credit card issuer’s policies.
12 Be Cautious with Annual Fees:
Some cashback credit cards have annual fees. Calculate whether the cashback you earn is less than the annual fee. If so, you might want to switch to a no-annual-fee card.
13 Pay Attention to Expiration Dates:
Some cashback rewards have expiration dates, so make sure to use them before they expire.
14 Combine with Other Rewards:
If you have multiple credit cards, consider using the one that offers the best cashback rate for each type of purchase. You can also combine cashback rewards with other loyalty programs, such as airline miles or hotel points, to maximize your benefits.
15 Review Your Statements:
Regularly review your credit card statements to spot any unauthorized or erroneous charges. Reporting and resolving issues promptly will protect your financial well-being.
By following these steps and using your cashback credit card wisely, you can earn rewards and save money on your everyday expenses. Just remember to maintain good financial habits, pay your balance in full, and avoid overspending to truly benefit from cashback rewards.