Did you recently acquire the Citi Double Cash Card or the Chase Freedom? Some of you may already have the Blue Cash Preferred or the Discover It. The type of credit card you have does not matter. The real benefit comes in how you use it. Using your cash back rewards card will give you discounts and perks like you never seen.
There are some details you need to be aware of before, during, and after you use your card. These tips will help you to make better choices for your purchase and keep you in good standing with the company.
You Do Not Want To Carry A Balance
Carrying a balance may be a problem for some users of the Chase Freedom card. You get so caught up in the high of making a big purchase, you forget you have a bill to pay. You will get a window to make your payments. Most cards will give you a year or so without any interest rates.Cards like the Blue Cash Preferred and the Citi Double Cash card gives you about 18 months to pay down your debt on orders totaling $299 or more. You will get an annual fee once the year is expired. Carrying a balance is going to reduce your chances of getting more discounts and perks. They will give you perks as long as you manage your finances well.
Making a Purchase
Many of us like to think about the cash back when we make a purchase. Cash back credit cards are famous for perks like this. The card will pay you every time you need to make a purchase. Users of the cash back credit cards mess up when they make ill-advised buys. You need to learn the difference between a need and a want.
- Clothes for you and your kids.
- Home improvement projects and other household items.
- The latest iPod.
- The latest game console for Xbox.
This sample listing will give you some idea as to what we are talking about. You do not want to blow all your cash rewards on acquiring unnecessary junk. You get all the rewards and end up with a huge debt.
Cards With An Annual Fee
The Discover It card offers it and so does the Chase Freedom. You may want to inquire about getting a card with an annual fee. The cards with the annual rates will offer more savings and perks with spending. Do you buy enough to warrant the extra cash? Some cards are worth paying extra. Some are a waste of money.
Your Spending Limits
We all get into this jam; myself included. We spend more than the card allows. The Chase card offers 5% cash back on purchases, but only on select merchants. Read the fine print with these cards. You do need to pay attention to the spending limits the cards offer. Your card may offer a certain limit before they cut you off. Some will tell you their rewards are only good at select retailers.You need to pay attention to how much you spend as you use your card. Spending money to earn the rewards is one thing. Spending for the sake of spending is another. You do not want to increase your debt ceiling through spending for the sake of spending. You will end up with items you do not need and a debt you cannot pay down right away.