How can you use your credit card to maximize savings on everyday purchases? If you have multiple cards, use them to maximize benefits. For example, Discover, American Express, Chase all rotate categories when you can get up to 5% back on purchases. January to March, Discover offers 5% back on travel purchases (airline tickets, hotels, cruises, car rentals) and purchases at restaurants, so rather than just reaching for any credit card, reach for the one that gives you 5% off this month. For March, they offer 5% back on Grocery store purchases.
Of course, there's one catch. You can only get up to a certain amount back, but you at least get some money back for your purchases that you would ordinarily make. Although a 1% cash back is standard for many credit cards, next time you're about to pay at the grocery store or pay for that cruise, see which credit card will give you the maximum benefit, and use that one rather than just getting the first card you see.
However, these type of rewards only make sense if you can pay off your balance each month. If you only pay off the minimum amount on your credit card statement, you get killed with the interest rate. That's how these credit card companies make a lot of their money. So, before you start trying to get cash back, pay down any outstanding balances, not only to improve your credit score, but also to make sure you're not a victim of those ridiculously high interest rates.
Of course, there's one catch. You can only get up to a certain amount back, but you at least get some money back for your purchases that you would ordinarily make. Although a 1% cash back is standard for many credit cards, next time you're about to pay at the grocery store or pay for that cruise, see which credit card will give you the maximum benefit, and use that one rather than just getting the first card you see.
However, these type of rewards only make sense if you can pay off your balance each month. If you only pay off the minimum amount on your credit card statement, you get killed with the interest rate. That's how these credit card companies make a lot of their money. So, before you start trying to get cash back, pay down any outstanding balances, not only to improve your credit score, but also to make sure you're not a victim of those ridiculously high interest rates.
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