There are a few ways that you can form the perfect cash back strategy this summer. If you learn some tricks, you’ll be able to earn back a lot of cash.
Maxing Out Bonus Categories
Some cards offer category based bonuses like earning five points per dollar on the purchase. These categories change every quarter of the year so shopping at such outlets is a strategic way to help you earn more points in over a period.
Choose More Cash Back on Regular Shopping Or Selected Categories
Although it may sound appealing when card companies boast a whopping 5% cash back on categories that rotate quarterly, it’s far better to opt for a 1.5% cash back instead that will cover all your purchase. This is because choosing to get 5% back on categories will lead to only 1% back on regular purchases.
Save Your Travel Expenditure on a Rewards Card
It’s a smart move to use your rewards card when travel season is coming close because reward cards can stock up on points which you can exchange for miles. Read How to Make The Most of Cash-Back Rewards from Credit Cards and Getting Cash Back for Traveling for more information and tips.
Take Advantage of the Sign-Up Bonus and Earn Some Cash Back
You won’t be cheating on your rewards card if you get another card which offers a good sign-up bonus. This will allow you to get cash back as long as you don’t pay interest and pay your bill on time.
Pair Together Two Cash Bank Cards
One way to get more money is to use different cards to make separate kinds of purchases. An example is rotating categories of grocery shops and other services that users can avail using their credit card. However, the 5% cash back that you received won’t last forever. This makes it better to get a card with 1.5% cash back that can be availed of all your regular shopping because other cards only offer 1% back.
How You Should Manage Your Credit Card
Whenever you hear a person’s bad experience with credit cause, it’s most likely due to foolishly spending money that they didn’t have. Don’t make the same mistake and treat it as the same amount that’s present in your bank account.
With credit cards, it’s really easy to get carried away and overspend which leads to many people getting in trouble with their respective credit card companies. Sign up for account management services online with your company. Check your account weekly so you can avoid forgetting that the money will eventually go out of your account to pay for it.
Don’t Wait Until Your Bill Is Due
Paying your credit card bill more than once a month will help you stay on track of your expenses and on top of your finances which delivers you peace of mind. At the very least you should pay your bill before the month ends to avoid overspending and helps imitate the feeling of having spent money.
Don’t Pay Interest
By following the steps above; you won’t have to pay interest on your bill because it won’t be overdue. Otherwise, you’ll be spending more money than saving it and having to pay interest is a clear sign that paying for expenses through a credit card is unmanageable for you.
Benefits of Using a Credit Card as a Budgeting Tool
Earn Cash Back
If you still use your debit card or cash to pay for your expenses, then you’re missing out because there’s much to gain by using a credit card. If you follow through responsibly, you can earn up to 5% back on your purchases with a credit card.
The way to do this is by opting for a suitable credit card because there are different kinds of credit cards that are suitable for certain needs. Getting a card that is suitable for the purchases you make regularly is a good way to earn and save points regularly.
Basic Tips on Maximizing the Cashback
Make A List Detailing Your Annual and Monthly Expenditure
Your monthly spending will help you know if it aligns better with a card that offers cash back on categories. Meanwhile, your annual spending will determine if you spend enough to use up the rewards offered by a credit card with a designated category.
Choose a Rewards Program Suited To Your Spending
After you’ve noted down what exactly you spend money on, you can sign up for a cash back credit card. The list can go on, but the top contenders are Discover It®, Blue Cash Preferred® and Chase Freedom® because their features are suited to a large variety of people.
Track Expenses with a Credit Card Statement
Use your credit card statement to see where you stand regarding expenses and update your list accordingly.
4 Best CashBack Credit Cards in Canada
Here are 4 examples of the best cashback credit cards available in Canada:
Further Advice on How To Maximize Your Cashback
Prepare For Category Season
Make sure that you get maximum cash back by not missing out on opportunities of seasonal categories. Learning the categories of each season beforehand will help you plan out any expenditure that you might have to make around that time of the year.
Redeem Your Points in Cash
Instead of redeeming your cash back in the form of expensive and luxurious items, it is recommended that you take the cash. This will have a real impact on you about how your smart spending decisions brought a positive outcome.
Helps in Compensating For High Gas Prices
Having a credit card that offers cash back on purchasing fuel can be very beneficial if you’re one to drive around a lot. It can help compensate for whenever gas prices get higher, so you earn more points when you purchase gas at inflated prices.
Gift cards are also a good way to redeem your cash back, and they’re also a way to ensure that you can save money outside the category period. If you haven’t spent the maximum amount within three months, you can assess whether you feel like you’ll need to save in the same category in the future months. If so, you can redeem your cash back in the form of gift cards.