That was good advice then, and it’s still true today. But, the credit card, when used wisely, can also be a powerful tool in the battle against higher prices.
That’s because many credit cards now offer rewards for purchases. And, if you select the right credit card—one matched to your buying habits—these rewards can be significant. You can receive free flights, gift cards, electronics, and even cash.
It’s important to remember that cancelling an account may impact your credit score, so it’s not recommended to open and close credit card accounts too frequently. In addition, if possible, don’t carry a balance on your credit card. Use your card to pay as many expenses as you can every month, and then pay your balance in full so you don’t incur interest charges.
Now, onto the good stuff!
Currently, the competition among credit card companies is intense and banks are getting more and more aggressive in the amount and type of rewards they are offering. If you select the right rewards card that matches your habits, the amount you‘ll earn back can be significant.
For example, if you fly frequently and are able to primarily use one airline, check out an airline credit card that works in conjunction with the airline’s loyalty program. That way, the money you spend on your tickets will earn you even more points with the airline. You would be surprised how quickly you can start flying for free.
Many travel credit cards also offer generous bonuses when you sign up or make your first purchase. With some airline credit cards, you get over 20,000 miles just for signing up, which is sometimes enough to qualify for an immediate, free flight.
And, many credit cards now come with additional perks. For example, being able to check your first bag for free and getting access passes to first-class lounges. The baggage perk alone could save a family of four as much as $200 on a trip.
If you’re not someone who travels a lot, then a general rewards credit card may be better for you. These cards let you accumulate points for each purchase you make, which can then be redeemed for a huge variety of goods. You can choose from restaurant gift cards, iPods, home appliances such as vacuums, jewelry, DVDs, pet accessories, and much more.
If you would rather earn money back rather than get merchandise or free travel, cash back credit cards are the way to go. These cards give you a percentage of cash back on each purchase. Some cards give you a larger percentage of cash back on specific items, such as groceries or office supplies.
Recently, with the increase in gas prices, gas rebate cards have become extremely popular. These offer as much as 3 percent back on gas purchases, as well as cash back for other types of purchases.
And last, but by no means least, switching to a new credit card can mean a huge additional savings to you. That’s because many of these cards offer zero interest on balance transfers for up to two years! That means, if you do have an existing balance on a high interest card, you can transfer the balance to the new card and take up to two years to pay it off while paying zero interest on the balance.
So, how do you go about finding the very best rewards credit card?
There is a great, free online service called CreditCards.com that can help you find offers from credit card companies eager to get your business. All of the credit card offers are presented clearly so they’re easy to compare, and you can find the offer that works best for you.
The site is also a tremendous informational resource for consumers wanting to make informed decisions about their spending.
For many people, a rewards card is a complete no-brainer, and can result in significant savings each month. And, using a service like CreditCards.com is one of the best ways to find the rewards card that will provide the biggest payoff for you.
To search and compare reward credit cards now, click here.
by http://www.howlifeworks.com/
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