Thursday, August 18, 2011

Bragging about...CASH BACK CREDIT CARDS

Most people have a love - hate relationship with their credit cards.  They love charging them, but hate paying them.


Plus, these days everyone seems to have at least 4 credit cards.  Then you get married, and you've got 8 bills to pay.  That many credit cards not only makes it more daunting to pay off, but also harder to keep track of spending, thereby increasing your total spend.  On top of that, it makes it easier for bills to fall through the cracks and pretty soon you have late fees racking up.


My golden suggestion: The Chase Freedom Credit Card.  (And no, they're not paying me to write this.)


1) If you're married/have a partner, get the same card in both your names.  This way, you have one card to pay for both of your expenses, thereby eliminating the need for yet another bill.
2) Plus, where possible, charge it (with the disclaimer being that you need to be able to pay off your monthly bill).  The rationale for doing so: CASH BACK REWARDS
  • 1% back on all charges with no max limit (i.e. - the more you charge, the more cash back you get)
  • Extra 5% each quarter on "bonus" categories.  While they change each quarter, the bonus categories include groceries, gas, and home improvement stores, to name a few.  The cap: max of $1,500 cash back each quarter
  • AND NO ANNUAL FEE!!!
  • Plus, if you have a Chase Checking/Savings Account, you can just have the Credit Card company deposit your cash back earnings DIRECTLY into your account, thereby forcing you to SAVE that money (and avoiding the hassle of checks). 
Sure, there are a lot of credit cards out there offering rewards.  But in my experience, they are just not worth it:


  • Credit Cards offering Airline Miles make it too difficult to even use with all the blackout dates and hidden fees.  Plus, these cards often limit you to which airline you can use, and often times you can find a lower rate on another airline.  
  • Credit Cards with Rewards Points to redeem online actually charge more  than what the product should even cost.  Plus, it forces you to purchase products they offer vs. a Cash Back Credit Card that gives you hard cash that allows you to buy what you want, from wherever, or better yet - allows you to SAVE that money.  
And yes, there are many cash back credit cards, but here's what I've learned: 

  • While the Citibank Dividend World MasterCard is very similar in that it offers a no fee, 1% cash back on all purchases, and 5% back on select categories, this credit card limits your cash back to a maximum of $300 in one calendar year  

So the way I see it, if I'm going to use a credit card anyway, I might as well get paid to use it. ;) 



Got any Credit Card Deals to Brag About? 
BRAG AWAY! 

2 comments:

  1. Thanks Sabreena! This is perfect...I was just asking people about the best rewards credit cards. Great blog!! :)

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