Maximizing Cash Back Credit Cards Can Be Easy And Convenient
“Cash Back.” You have seen it on billboards, print ads and leaflets, heard it on radio and television. If anybody needs an enticement to get back cash for spending it, a cash back is a promise that fulfills itself. Regular user of credit card users can only obtain more benefits when they learn that maximizing cash back credit cards is a scheme that may be hard to pass up.
While some people look at cash back only as something that can pay off the interests of their cards at year’s end, those who think of it as a method of paying off their cards in full every month are actually the savvy users.
The holder of a credit card with a cash back program should know that regular and full monthly payments made using the card is to his advantage: the receipt of cash for the price of every item that you purchase or service that you use like electricity or the telephone is a no-brainer.
Two Credit Cards May be Better than One
When paying debts incurred through a credit card, make sure that your payment is made in full to avoid being saddled with monthly interest typically charged on the actual, or principal, amount. There are credit card companies that offer lower interest rates with the same cash back rewards of similar companies with high interest rates. Keeping track of your expenses and their due dates for payments so you don’t end up paying more than receiving is the only option to elude that compounded interest. Maximizing cash back credit cards by paying in full any balances that you may have at the end of every month is another way to avoid credit card problems.
There are companies out there that offer up to 40% cash back on top of the regular cash back that you already have by using your card. To make the most out of this particular option, some people maintain two credit cards, whereby one card with the lower interest rate is utilized exclusively to pay for items that the holder can pay easily and quickly, while the other card is used for items that the holder can pay off over a certain duration of time, usually a longer period. This method allows you to avoid interest payment on the card which has the cash back rewards.
Know Your Card’s Restrictions
As simple as everything seems, cashing in on cash back programs is not as easy as pie. Consider that maximizing cash back credit cards is dependent on a specific company’s policy regarding such a cash back program, with restrictions and limitations governing each conversion of points into money. The cardholder usually receives a certain percentage between 1% and 6% of cash back on purchases made for a year, but remember that these purchases are categorized.
A case in point is when you buy items from Mom-and-Pop stores which are not considered as “real” grocery stores. You don’t get cash back rewards even if you buy a carload of items from these stores because of this classification, ergo, what you buy cannot be termed “groceries.” Common cash back rewards may be availed of when you use your credit cards at for gas, restaurants, retail items and for groceries bought from supermarkets.
Read Through the Contract
Read the fine print of the contract of the credit card you apply for. You might discover, and to your dismay, that what you signed doesn’t actually refund you with cash but in kind, usually gift cards and other non-monetary perks. Read through the contract so you can be guided by the restrictions set by the company regarding missed payments, wherein the penalties may be severe enough to disregard any cash back rewards you have already accumulated, or unpaid balances within a certain time frame that could negate your rewards because of the interest.
Paying property, federal withholding, business and state withholding taxes with cards is another way to take advantage of maximizing cash back credit cards, as well as using the cards to pre-pay your cell phone and internet connection bills. Ask if your utility companies allow pre-payments of bills with the kind of cards you have.