Credit card cashback bonus points can earn you money, if you have the facts. People use credit cards for all different reasons and to varying extents. Some people need credit cards to finance purchases that they can’t afford right now but still want to make. Other people use cards for convenience or to extend warranties. But it is becoming more and more popular today to use cards as a way to earn cashback rewards and bonuses.
You can, actually, make a decent sum of money using your credit cards to earn cashback. But first you have to get past these 4 myths to really make the most of your cashback rewards.
A lot of people think that they simply do not shop enough to make money with credit card cashback bonus rewards. This is not usually true. Often you can pay bills using credit cards. You might be able to pay your car insurance, property taxes and utilities with credit cards. If you find a card that gives 2% or more cash back you could easily net $1,000 a year simply by paying your bills!
Some people think that cashback rewards just don’t add up fast enough to be worth it. But even a modest 1% reward can provide you with a few hundred dollars a year. First, think about what you really spend. Maybe $125 a week on groceries (probably more)? Do you spend $75 a week on gas? $100 a week going out to eat or seeing a movie? Just those necessities and you’ve spent $300 in a week. At a modest 1% cash back rate that’s just $3. But multiply that times 4 weeks in a month and you’ve earned $12 in a month. In a year you’ve earned $156. It adds up!
Then, imagine how much you spend on holiday gifts, clothing and vacations. Now add in some bills, per Myth #1, and imagine the rewards you can earn.
Do be sure to take advantage of special 5% cash back offers that your credit card companies may have. But also beware of caps – many companies put a maximum on how much cash back you can earn, so you might do best to spread your spending out among a couple of cards with good cashback programs.
A number of credit card banks, such as Chase, offer generous bonuses for getting credit cards with them. Rest assured that with legitimate companies these bonuses are real. The bank is counting on you paying enough in interest to make the bonus worth it to them, but if you spend carefully you can come out ahead!
It is up to you to check your credit card cashback bonus points balance, request reward payouts and such. Do not count on your credit card company to ask you if they can send you your reward. In addition, when you do claim a reward check your balance again after your next statement to see if you have earned more cashback since your cash out.
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