Credit cards can be a huge tool for people who utilize their credit card cashback system. Most credit cards offer some cashback points reward system. The premise is that when you use your credit card to complete a purchase, you will receive a certain amount back as cash. This may be a tactic to get people to spend money on things they don’t need because they will get money back, but for serious credit card users, this is how they make out of all their purchases.
To take advantage of cashback offers, you need to know what areas you spend most of your money on. For most people, this will be gas, groceries, entertainment, and online shopping. There are many credit cards that offer cash back on purchases like these.
Once you know your areas of spending, you need to decide what type of card is best for you. Some credit cards offer rotating 5% cashback on certain categories. They can be dining to Target to wholesale clubs. These are great cards if you see future categories that you’ll be spending money on. This is one of the highest cash-back percentages and can really add up if used properly. In the fourth quarter, many cards offer 5% back on Amazon. This is a great time to do your Christmas shopping on Amazon and get the most cashback.
If there are areas where you spend often every month, then it is best to get a card with that category in the highest percentage. For some cards, you can choose your top category and some offer a tiered percent category. Have one card for each of your top spend categories. Have a grocery card, entertainment card, online shopping card, and travel card. This ensures that you will get the most cash back and utilize this offer in the best way. Getting 3-5% on these top four spend areas will add up. It’s better than using one card and getting 3% back on groceries, 2% on dining, and 1.5% on everything else. This does take some concentration since you will have to remember to have your grocery card with you if you are at the grocery store, but this will become easier as you use this system.