Monthly Archives: May 2013

What are some creative ways to utilize your cash back credit cards

Cash back credit cards are a great way to earn extra spending money on various purchases. These types of credit cards can be used to pay monthly bills or to make an occasional big ticket purchase. Earning a cash back reward is a great way to save money without having to put money in the back. Spending cash back rewards can be done in a variety of creative ways.

Amazon Payment

Purchases on Amazon can now be made partially or fully with the cash back rewards that are earned on a Discover Card. This is a great way to buy a new camera or to reduce the price for an item. A user who has a $100 cash back reward balance on their Discover Card can reduce a $400 item to $300. Lowering the cost of an item means that less needs to be charged or paid with a debit card.

Buy Groceries
Monthly purchases on a cash back credit card may total $50 or more per month. This means the reward can be cashed in every three to four months to use for pay for a month’s worth of groceries. If a coupon is used to lower the price of various grocery items, then the cash back reward can go much further.

College Textbooks

Taking out a loan to for college tuition may not include the purchase of textbooks. Anyone that is short on funds at the start of the semester can use their cash back reward to buy textbooks. One thing to keep in mind is textbooks can cost up to $100 or more.

Medical Bills

Individuals who are required to pay a co-pay when visiting a doctor or dentist may choose to use a cash back reward from a credit card. This is a great way to avoid taking money out of savings or checking to make the payment. Make sure to see if the cash back reward can be transferred to a bank account. Most cash back rewards are mailed out a check that needs to be deposited.

Home Improvements

The amount of a cash back reward on a credit card may cover the cost of replacing a window, replace a section of gutter or any other small home improvements. Materials, such as caulk, nails, paint, brushes, and other items, can easily be paid with the amount received from a cash back reward. This will mean there is extra money available to spend on other improvements.

Give to Charity

Charities of all types are eager to receive funds. If a cash back reward is not needed, then it can be donated to a local charity. One benefit of donating to charity is that the amount is tax deductible.

How to Optimize Rewards on Credit Cards that Offer Rotating Categories Perks

Reward cards come in many shapes and forms and whereas there are those that offer uniform perks, there are others that provide the so called rotating categories perks. What this means is that in a certain period of time, the card issuers and partner stores will provide perks that change with time. For example, between January and match, you may have rewards on groceries, and between April and June, you could have rewards on restaurants and bars and from July to September, you have rewards on gas and from October to December, you have rewards on entertainment.

These reward cards are a great away to earn you from the different purchases you make throughout the year. For example, you only need to fill your gas once in 3 months period and this means that when you have filled your gas; you can switch to another form of perks such as groceries. However, the timing is very important because you need to activate your card for every category that is offered.

If you do not activate your card, it means that you will have to miss the perks. Although some people do not like to get bothered by such things as activating their cards every now and then, this is the only way you can optimize the use of rotating categories reward cards. They are designed to enable you enjoy a myriad of perks depending on your spending patterns.

Therefore, if you are just too busy to remember to check online, emails and mail boxes for the next period of perks and activate the card, it means that you are not the right candidate for these cards. However, when used properly, they can save you a lot of money, which you can use in other financial needs. A good example of rotating categories reward cards is the Chase Freedom Visa, which offers 5 percent cashback on rotating categories in quarterly timeframes meaning that there are cashback on categories that change every 3 months.

This reward card gives you a 5 percent when you spend $1,500 in every rotating category that corresponds to the quarter you are in. The categories rotate as follows in the 2014 year;
• From January to March- your earn cashbacks on gas stations, drug stores, and Starbucks
• From April to June- you earn cashbacks on restaurants and movie theatres
• July to September- you earn your cashback in gas stations, theme parks and Kohl’s
• From October to December- you earn cashbacks from Amazon and other selected stores.

Besides the 5% on rotating categories perks, the Chase Freedom reward card enables you to earn $100 cashrebate when you spend $500 within the first 3 months when you are issued with the card. In addition, the card has a normal 1% cashrebate on all other purchases apart from the 5% applicable cashrebates on rotating categories. Moreover, this card has a 0 percent introductory APR on purchases and balance transfer within the first 15 months.

The Chase Freedom reward card does not have annual fees. Other rotating categories reward cards for 2014 include the Citi Dividend Platinum Select Visa Card, which offers 5 percent cashrebates on purchases from home furnishing stores, home and garden stores and home depot. Its categories change quarterly and if you are having renovations for your home, you may need to have this kind of card.