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MAKING THE MOST OF YOUR CREDIT CARD – HOW TO EARN REWARDS AND CASH THE EASY WAY, JUST BY CHARGING YOUR CARD!
_Getting something for nothing is an appeal that has long played out on the American landscape!
Credit card companies in America are well aware of this. Over the past few years the major companies have competed to design schemes that play on this appeal, and have achieved massive amounts of success in many cases.
The two schemes that have come out on top are the "rewards" credit card and the "cash back" credit card.
Millions of Americans take advantage of these offers every day, earning rewards and cash whenever they charge a product or service to their credit card.
It seems everyone has their preferred card scheme! They may sound similar at first, but there are some key differences that make them quite different. With the type of rewards on offer, it is generally easy to find the right card for you, if you know what you are looking for.
When it comes to credit cards giving out prizes, a rewards card takes the cake.
When it comes to getting back some cold hard cash, then cash back credit cards are the clear winner.
Still, there are enough similarities between the two types of cards to make it quite confusing for the consumer.
We'll pick apart these two types of cards to help you determine which one is right for you!
Cash back credit cards, as the name suggests, let you earn cash depending on the amount you charge to your card each month.
Cash back credit cards typically give users one point for every purchase and up to five points for select purchases. This select category may include cash station purchases, groceries, the drug store, etc.
Once a certain threshold has been reached - let's say 2000 points - the cardholder could be eligible for a cash withdrawal of $20, or the same amount credited to their account.
Either way, a cash back credit card can add up: in most cases the more points you accumulate, the faster you can reach your goals of getting more money back.
A rewards credit card works in a similar way when it comes to points accumulation.
The difference with this type of card is you typically get rewarded with useful prizes that cost a certain number of points and can be redeemed when you have accumulated a set amount.
With some rewards cards you don't get rewards until you redeem your points. So, if you want a free night at a fine hotel, that could cost you 20,000 points. Or, if you want to get a $75 gift certificate to a big box retailer, that could cost you 9,000 points.
Usually, the rewards card provider gives you a catalogue and lets you choose your prize.
Some of the typical rewards offered are:
The most popular credit cards currently on the market offer the best of both worlds – a rewards system with a cash back feature.
In this case, you can redeem points for money OR prizes.
Unlike the cash back or rewards credit card you have a choice – cash or prizes. These cards have increasingly grown in popularity because of this added feature.
Some people look at such offers with skepticism thinking that nothing in life is truly free.
In some sense they are right: if you don't use your rewards or cash back credit cards wisely you could pay a bunch of fees and interest charges!
It is important not to make the mistake of over-charging your card in order to earn points. It is tempting to buy more than you intended, so that you can make up more points to spend at the end of the month.
You should ensure that you are only charging what you can afford. A good way to look at it is, if there were no points to be earned would you still be buying the product? If the answer is no, then you should be more careful about charging your card.
Of course, the credit card companies use these schemes to retain your loyalty – knowing that if you are focused on earning points you are more likely to use their card than another.
This is not necessarily a bad thing, as long as you don’t change your spending habits.
For the most part, however, the credit card rewards systems are a great way to earn back some of what you spend.
With careful use, you can easily make a difference to your budget every month. All you need to do is find the right company and card for you, and then spend as you normally would.
What's in your wallet? Make it work for you today in the form of cash back or great rewards!
Credit card companies in America are well aware of this. Over the past few years the major companies have competed to design schemes that play on this appeal, and have achieved massive amounts of success in many cases.
The two schemes that have come out on top are the "rewards" credit card and the "cash back" credit card.
Millions of Americans take advantage of these offers every day, earning rewards and cash whenever they charge a product or service to their credit card.
It seems everyone has their preferred card scheme! They may sound similar at first, but there are some key differences that make them quite different. With the type of rewards on offer, it is generally easy to find the right card for you, if you know what you are looking for.
When it comes to credit cards giving out prizes, a rewards card takes the cake.
When it comes to getting back some cold hard cash, then cash back credit cards are the clear winner.
Still, there are enough similarities between the two types of cards to make it quite confusing for the consumer.
We'll pick apart these two types of cards to help you determine which one is right for you!
Cash back credit cards, as the name suggests, let you earn cash depending on the amount you charge to your card each month.
Cash back credit cards typically give users one point for every purchase and up to five points for select purchases. This select category may include cash station purchases, groceries, the drug store, etc.
Once a certain threshold has been reached - let's say 2000 points - the cardholder could be eligible for a cash withdrawal of $20, or the same amount credited to their account.
Either way, a cash back credit card can add up: in most cases the more points you accumulate, the faster you can reach your goals of getting more money back.
A rewards credit card works in a similar way when it comes to points accumulation.
The difference with this type of card is you typically get rewarded with useful prizes that cost a certain number of points and can be redeemed when you have accumulated a set amount.
With some rewards cards you don't get rewards until you redeem your points. So, if you want a free night at a fine hotel, that could cost you 20,000 points. Or, if you want to get a $75 gift certificate to a big box retailer, that could cost you 9,000 points.
Usually, the rewards card provider gives you a catalogue and lets you choose your prize.
Some of the typical rewards offered are:
- Stereo systems
- Cookware
- Electrical appliances
- Video games
- Hotel stays
- Gift vouchers
The most popular credit cards currently on the market offer the best of both worlds – a rewards system with a cash back feature.
In this case, you can redeem points for money OR prizes.
Unlike the cash back or rewards credit card you have a choice – cash or prizes. These cards have increasingly grown in popularity because of this added feature.
Some people look at such offers with skepticism thinking that nothing in life is truly free.
In some sense they are right: if you don't use your rewards or cash back credit cards wisely you could pay a bunch of fees and interest charges!
It is important not to make the mistake of over-charging your card in order to earn points. It is tempting to buy more than you intended, so that you can make up more points to spend at the end of the month.
You should ensure that you are only charging what you can afford. A good way to look at it is, if there were no points to be earned would you still be buying the product? If the answer is no, then you should be more careful about charging your card.
Of course, the credit card companies use these schemes to retain your loyalty – knowing that if you are focused on earning points you are more likely to use their card than another.
This is not necessarily a bad thing, as long as you don’t change your spending habits.
For the most part, however, the credit card rewards systems are a great way to earn back some of what you spend.
With careful use, you can easily make a difference to your budget every month. All you need to do is find the right company and card for you, and then spend as you normally would.
What's in your wallet? Make it work for you today in the form of cash back or great rewards!