Credit cards are not first choice for wealth building. But a great opportunity to learn good habits. Cash rewards may work for or against you. Many buyers are getting cash rewards for credit cards. Be careful and give much consideration before you use this perk. Have a plan as to how this will work for your overall personal financial health.
Cash rewards are shopping offers. You may receive a small percentage back pending on the purchases you make. If your offer is for 1% then you receive 1% of the value back for a given purchase. Essentially, this is a discount to you for using your credit card.
Depending on how you use this feature, cash rewards may either be a benefit, or a burden. Using your card wisely, will allow you to maximize this offer. That is smart shopping decisions. An outstanding balance or overspending could cause you problems. If you’re carrying an excessive balance over each month the card APR will undermine your returns.
Have a limit. If your balance carries into the next month, pay more towards your bill each cycle. If you have been responsible, try to use the rewards offer. If you have a bill you pay each month put it on your credit card. Save the discount and enjoy the extra savings!
But remember, Credit cards are not first choice for wealth building. But a great opportunity to learn good habits. Those earned cash rewards for credit cards may work for or against you. Be careful and give much consideration before you use this perk. Have a plan as to how this will work for your overall personal financial health.