Credit cards get a bad rap a lot of times. Many people want to associate credit cards as something evil. This is typically because a lot of consumers aren’t very good at managing their money. Additionally, there are credit card consolidation options for people who could benefit from it. I’m here to tell you that if you can be responsible then there are many benefits of having a credit card. Making sure you get the right credit card is a key decision that you will have to make, which is why you may want to look around and compare different deals from all the major credit card issuers before making your final decision. You may want to check out a site like gobear.com if you are looking to compare credit card deals, as a lot of their recent content has been based around credit card promotions. One of the benefits you can get with a credit card is the cash/rewards you get just for using your it.
I’m currently using two main credit cards:
- Amex Blue Cash – I call this the 1,2,3 card. I get 3% back at supermarkets, 2% back at gas stations and select department stores, 1% back on everything else. Yes, it’s all cash back. It also has no annual fee.
- Chase Freedom Card – You get 5% cash back on quarterly rotating categories. Currently it’s gas stations and Kohl’s department stores. You get 1% cash back on everything else.
So currently I’m using my Chase card at the pump, my Amex card at supermarkets and either card on whatever else I want. When the categories rotate again next quarter I may use my Amex at the pump.
I also just redeemed more points on my Amex for cash in the amount of $200. In fact, since the beginning of the year, I’ve received $500 in cash back on this card! These cash back rewards can really add up.
You see, I don’t pay any interest on purchases (my total balance is set to automatically get payed each month). This is extra money I receive for doing nothing else but using my card for expenses I am going to have anyways.
This $200 will be used to take my wife out to a nice dinner where I will likely pay with my Amex card. Not only will this earn more points on my card but I may even earn some points with her! The remainder will go right back into my brokerage account where I’ll be putting it to work for me by purchasing more dividend producing stocks.
How do you use credit cards?