Hello Fix Your Credit Consulting community! Today we are going to explore one of the biggest benefits that you can get just from using a credit card: rewards and cashback for shopping!
In the world of credit repair we sometimes encounter people who are reluctant to sign up for credit cards, more often than not these people don’t know about the rewards most lenders offer for utilizing their credit card service. Nowadays nearly every kind of credit card offers some kind of bonus when you make a purchase that translates into money going back into your pocket.
Often these rewards take the form of points you can earn by just using your credit card to buy things, usually at the rate of one point per one dollar spent, with the vast majority of lenders offering extra points for certain kinds of purchases. That means they might offer more points for using their card to buy groceries or they might offer a certain amount of free airline miles per a mile flown when you buy plane tickets with one specific kind of credit card they offer. They might also offer bonus points when spending at specific companies that have partnered with your lender. For example, you might sign up for a credit card that has a special deal with a specific coffee chain, either giving you discounts when you buy your coffee there or giving you even more points when you use your card there.
All of these various reward point bonuses, and which companies and types of purchases net you the most, can be an important thing to consider when deciding which credit card to sign up for. Think about where you shop and eat most often and find the card that has a reward program that best lines up with your habits.
Alternatively, if you find a card that has an amazing rewards program with places you do not normally shop at, then you can take that into account when deciding where to eat dinner, purchase gas, or in any other similar situations to make sure you are getting the most out of your spending.
These points that you rack up can then be redeemed for a variety of things depending on your lender. One of the common forms of rewards are airline miles which means you can fly up to a certain distance (the amount of free miles you have) for free. Points can also usually be redeemed for gift certificates for specific outlets or chains, usually chains that have partnered with the lender, meaning places where you are already getting a discount or bonus points for using your card. However nothing beats getting your points redeemed for a straight monetary rebate on your next credit statement! That means full on cash back, no strings attached.
Taking everything above into consideration, this means that you can essentially be getting free money by just using your credit card! And if you use your credit card responsibly, meaning never spending more than you have and paying off your card in full every month and on time, then this is a great way to get more out of your spending while building your credit and raising your scores!
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