When you have a credit card, you should not just let it lay around your wallet and not use it at all. It will be a waste because your credit card most likely has a rewarding cash back program that allows you to earn a lot of cash back. The following are 4 ways on how to use a credit card to improve your cash back rewards.
1. Pick the Right Cash Back Credit Card
If you want to get the most cash back rewards, you must choose the right card from the start. A good cash back cardshould offer at least 1.5% cash back for flat rate rewards. You should find a card that offer more than 2% cash back if it is a card that offers cash back on rotating categories. As a rule of thumb, you should have one credit card for everyday use and the other card for special purchases like travel or dining at an expensive restaurant.
2. Use the Cash Back Card Regularly
After applying for a credit card, you must regularly use it to pay for your expenses. One way to use your card regularly is to use it to pay various types of bills such as internet, TV and phone plan, online subscriptions, car installment, insurance premium and utility bills. You can use the credit card to pay for everyday purchases like grocery, and gas. When you want to pay for something expensive like travel, you can use the card with the bonus rotating category rewards to pay for the expenses such as air ticket, car rental, hotel.
3. Take Advantage of the Signup Bonus Program
Many rewards credit card offers a signup bonus that allows you to earn a large amount of points at one time when you meet a minimum requirement. If you can afford it, you should use the card to make a big purchase and don’t let the signup bonus go wasted. With the points you earn from the sign up bonus, you can redeem a travel statement that is worth a few hundred dollars.
4. Find a Cash Back Card that Has the Lowest Fees
To maximize the rewards you earn, you must find a card that has the least fees. It is best to find a card that do not include an annual fee. Some cards also waive the late and penalty fee which is charged you make a late payment. In order to decide which card to sign up, you must first estimate how much rewards you are able to earn with your spending habit. The estimate cash back rewards that you earn should be higher than the fees that you will pay on the card.