I am a big fan of credit card rewards, as I have mentioned in the past I managed to cut the cost of my Honeymoon in half by using those rewards. I am always monitoring my cards, checking to see which cards offer the best rewards in which categories. Some give you cash back on gas, other give you points for travel. Promotions are popping up and changing all the time so you have to be nimble.
My favorite type of reward is probably cash back. As the commercial says “Who doesn’t want more cash?” I view cash back as an additional discount on my purchases. If something cost $200 and I find it for $150 and use a card with 5% cash back I have managed to stack another $7.50 in saving on top of my other deal. Five percent cash back is pretty much the pinnicale for cash back.
Plenty of card will offer you 1%, some will go as high as 3%, but 5% is usually the best you can do. This is the case with my Discover card. Up until this month they were offering %5 cash back on gas purchases. I relly liked this offer because it not only gave me a good return, but it helped me keep track of my fuel spending. I kept my discover card in my car and only used it to buy gas. A t the end of the month I could see exactly what I was spending on gas.
This month all of that changed, Discover card likes to rotate their 5% rewards category, this time it’s online spending. At first I was disappointed, but then I realized one simple fact. I spend a lot more on my online purchases then I do on gasoline. This will be especially try as we get closer to the holidays.
Now I keep me discover card near my computer, I break it out whenever I buy something online, which is how I do the majority of my online shopping. If I can complete my Christmas list without setting foot in a mall I am a happy guy. If you are the same way you might want to consider getting a Discover Card and enrolling in their cash back program.
*** Please keep in mind that carrying a balance on a credit card will almost instantly wipe out and rewards or savings, please use your credit card responsibly.