Match Your Own Money Back

Category: Finance, Credit.

Money back credit cards( otherwise known as cash back or cash rebate cards) are a great invention.

Most consumers who have a money back credit card are satisfied with this benefit. They are a way for consumers to save money on every purchase that they make by getting a percentage of the purchase back from their credit card company at the end of the billing cycle. But those consumers that are really smart with their money can actually benefit a lot more from the use of their money back credit cards. The way to really get a good chunk of money from your cash rebate cards is to create a savings account using the money that you get back from your purchases. Creating a Money Back Savings Account. Instead of just leaving that money sitting on your card, cash out and put it in a savings account at your local bank.

By putting the money into savings, you actually make that money useful. This will allow that money to generate interest which isn t going to be the case if it s just being deducted from your outstanding balance every month. Match your own Money Back. In other words, let s say that you spent$ 1000 on a card that gives you 1% back in cash. To really cause your savings to grow, you should challenge yourself to match your money back card savings each month. That equates to ten dollars that you ve gotten from your card.

Now, just by spending money on your credit card, you ve got$ 20 in savings. You can easily find a way to pull ten dollars out of your paycheck and match that amount by adding it to your savings account. As the months go by, that s going to add up. There are some money back credit cards which don t actually give you the cash back but instead apply it to paying off your bill. The key to making this work is to make sure that you select the right cash back card. That won t benefit you in the same way.

Make sure that you read the terms carefully so that you get a card that is actually going to let you cash out your rewards. There are also cards that advertise a certain percentage back but actually give you a lower percentage if you opt for cash instead of gift cards or other rewards. Paying off the Card. In order to really make money from your money back card, it s important that you pay off your balance in full each month. Of course, none of this is really very good if you re just racking up credit card debt. This lets you avoid paying money in interest rate fees and finance charges.

By paying off charges as quickly as possible, you also free up the card for more expenses. The less money that you spend, the more money you re saving. The more frequently that you use your card and pay it off, the more quickly that cash back is going to add up.