How to make more money using your credit card?
First of all, you have to consider if it’s worth having a credit card at all, even if you have enough money to pay for a purchase upfront. Cash back credit cards, where you get money back simply by using the card, is that the way forward to make more money using your credit card? Sounds too good to be true or just an other good idea?
Keep in mind, with a credit card, you can enjoy the privilege of being able to borrow money for up to 59 days without paying any interest. Also, when you make a purchase with a credit card, you automatically get certain legal rights that debit cards don’t offer.
Then there is the choice between the different cards, from 0% balance transfer cards, 0% purchase cards, low standard APR cards, cashback cards to reward cards,
This article concentrates on the cash back credit card. Usually you get around 1% cash back on the amount you purchased on the card. With some cards, you get a higher percentage back in the first three month.
It sounds great, especially if you like to buy a lot of things in one month. Keep in mind that not all credit cards give money back on all your purchases and that some limit the amount they pay out. The terms and agreement details will give you these information.
Companies will have good offers and try to draw in new customers. But realise that they have to check your credit rating before they will give you their card. You might find a great cash back card, that offers you just what you need and with a really high cash back percentage, few limits on the amount they will give you back and even instant cash deposits when you make each purchase with their card.
These companies do need your credit rating to be great too. Therefore, research all our options is key. Start on Google and look for: compare credit cards (followed by: UK or the country where you want to apply for a credit card). If you have a good credit rating, then this card is a great option.
If, however, you have a bad credit rating, you may want to find a credit card that will help you rebuild your credit.
Some cards give you a choice of getting straight cash or they have a reward scheme where you can chose from various products. Some cards offer voucher for several high street shops. In general, you get more money back with the vouchers than the straight cash back.
Comparing cards, make sure the sites you use are independent or are making clear who they are working with. As great as credit cards can be, the companies are there to make a profit. It could be worth changing your credit card once in a while if you don’t mind the hassle of transferring standing orders, that you might have. Obvious, the more payment go through your credit card the more rewards you get. Biggest warning: pay this type of credit card of in time. Otherwise the interest you pay, might get bigger than your reward.