Aug 11
31
Reward Credit Cards for a Frugal Time
You have no idea how excited I am. I’m going to be taking a Caribbean cruise but that’s not the exciting part. We’re staying in a suite. My wife and I are going to wake up in the morning and step out on to our private balcony to see the ocean. We aren’t amongst the wealthiest people in the world and I’m quite the penny pincher so how are we affording a suite made for the wealthy and why am I agreeing to pay for it? Our rewards credit card is making it all possible.
I’m surprised at how many people do not take advantage of a rewards credit card and how many do not even know know what one is. The concept of these cards is very simple. You receive a certain amount of points for every dollar you spend with the card. Once you have enough points, you are able to purchase merchandise with your points.
Some rewards cards are specifically geared for a certain type of reward. Some will earn you airline miles, rebates towards the purchase of a new car, or discounts on gas. Others are more general where your points will buy you anything in the company’s catalog.
Don’t forget that one point is not worth one dollar of buying power. A $50 gift card is going to cost you far more than 50 rewards points. For a gift card of $50 in one of my rewards catalogs I would have to pay 5,000 points!
Not a great deal, right? Well, on the second thought it is a really great deal. Think about it like this. you would use your credit card with or without the rewards points, right? The points are just an extra benefit for you.
Like all credit cards, you have to shop around. Some have annual fees while others don’t. Some pay you double points for certain purchases while others pay you a set amount of points for everything. The rules and regulations for your points are different with the different cards. Don’t dismiss the cards with annual fees. As with most things, you get what you pay for,
Although rewards credit cards are a good way to save money, if you do not pay your credit card bill in time each month, the interest you Bank Routing Number Cfbank will then pay is canceling the potential financial benefits you of the cards. It is always beneficial to have a rewards credit card if you’re paying interest, but your rewards are just paying a small portion of your interest.
How many rewards points did I need to be able to pay 60% of my luxury cruise? I’ll give you a hint: I needed a few years to collect the points and if I had that amount of rewards points in actual dollars, I could likely consider myself a rich person. If you apply a few key strategies, it won’t take you very long. I’ll write more about this in another article.
This is my first cruise and my friends are probably bored of hearing me talk about it. Nothing in world tastes better than a free dinner. In fact, the vacation is costing me very little and it is a penny pincher’s dream that come true. If anybody says that a rewards credit card is worthless and a waste of time or the annual fee, send them to me. I’ll tell them about the great cruise.
Compare the best cashback credit cards and then apply online. If you spend a lot on gas, you might want to consider a gas reward credit card.
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