Cashback credit cards are flexible and diverse, and are gaining more consumers than ever, seeing these cards as an opportunity to get some form of extra savings set aside beyond their bank account. There is so much that somebody can do with the spending rewards they get from their credit card. We’ll take a look at the benefits of account opening and what you can do with some of that bonus cash that’s building up and what your redemption options may include.
Pay Down Your Debts
If you’re looking for the best cashback credit card in Canada, you’ll want to make sure you check the terms and conditions before signing up. This will help you avoid any potential annual fee, and understanding any requirements that may come with receiving cashback rewards. These types of credit cards come with maximum earning rates on certain services, while others may have a schedule of where the cashback comes into effect such as gas stations one month, and grocery stores the next.
Credit cards are available through all of the major carriers like Visa, American Express, Mastercard, and Discover. An eligible purchase will get you a certain percentage back that can actually be used towards paying down your account. This use of a statement credit should be done in balance with how often you use the cashback card, as continuously rising debts will do nothing to level your credit score.
Incidents can happen at a moment’s notice that can lead to a major expense that we weren’t ready to see deducted from our bank accounts. That’s where it couldn’t hurt to use a cashback rewards program to save for a rainy day. Experts recommend saving from 3-8 months’ worth of living expenses to build a proper emergency fund. A flat-rate cash card may not only help you get money back on everyday purchases but are a great way to be ready for that rainy day.
A double cash card is a good solution to helping to build some extra funds on the side. Cardholders can take advantage of a welcome offer with some major credit card carriers for a rebate on balances depending on the amount of regular spending they use that cash-back card for.
Save Your Major Goals
Card issuers may specify on what you can capitalize your cashback rewards on, so it may be in your best interest to limit spending on that credit card to things in that scope. For example, if a cashback system only is expected at a wholesale club, use it when you buy in bulk only. Taking advantage of these perks can be a great way to monitor spending habits while saving up for something special.
Depending on a credit card offer, some carriers may offer additional benefits on your card beyond the cashback rewards program. Cardholders can capitalize on discounts on travel or mileage programs, and use their cashback towards that vacation they’ve always wanted to take. You may even get more cash back because you spent on travel purchases.
Splurge on Something
Beyond using your credit card for cash back rewards at the grocery store or another retailer, consider using that bonus cash on something you normally would. You could explore CBD products, using a CBDMD review to find the deals that are right for you as a newcomer. Some CBD users have found that these products reduce inflammation brought on by arthritis and, in some cases, reduces stress and anxiety.
CBD comes in all different forms from extracts and tinctures to gummies and topical creams. Be sure to look into the organic ingredients used by certain CBD products, and the milligrams of dosage to find the product that’s right for you to use your cash back card on.