Many people, especially when they are young, receive a credit card offer in the mail, fill out the application, and wait to see if they are approved. Once they are approved, they happily start charging. Often they run up balances and begin paying interest. In recent years, credit card companies have increased interest rates, annual fees, late payment fees and returned check fees. If you are not careful, using your credit card for the convenience can become a very expensive proposition. Rather than signing up for the first card offered, take the time to research cards and make them work for you.
There are credit cards that offer point rewards, airline rewards, and cash back rewards. The card that can easily meet all of your needs is a card that offers cash back rewards. A Capital One Venture Card review shows that this card pays 2% cash back on all purchases. While some other cards offer more generous cash back rewards (some as much as 5% cash back), these rewards are usually offered with contingencies such as you will only receive 5% during certain months on certain purchases or only if you register for the rewards. Most of us are busy and don’t have time to keep track of such things. It is easier to have a card that offers 2% no matter what the purchase.
In these days of credit cards seeking to make more and more money off of consumers, turn the tables and instead make money yourself from using the card. Be disciplined to pay off the card every month, thereby avoiding interest payments, and reap the rewards of getting cash back for every purchase you make. If you put most of your purchases and bills that you pay monthly on your credit card, even with a modest $2,000 charged and paid off monthly, you could earn $480 per year in cash back. Now that is using a credit card wisely!
Guest post by Melissa