Why should I use a credit card instead of cash for purchases?
Did you know that there is a way for you to get paid back for your spending? The strategy is to use your credit card instead of cash to earn points.
Purchases on most premium credit cards earn points that can be redeemed on travel or other things like cash back. These cards earn anywhere from 1 point per dollar spent to 5+ points per dollar spent. So, it’s important to understand what your card earns and how to redeem the points. You typically get much more value out of travel-based points.
Let’s take a look at a really basic example of why you should use a credit card for a common purchase. You go to lunch and buy a sandwich for $10. If you use cash to pay for that sandwich, you are getting an enjoyable lunch and spent $10. If you pay the same $10 on a credit card, you have a nice lunch, and receive some reward points. We think it makes sense to collect those free rewards on spending you’re already doing.
Spending just $1,300 per month on a card could earn enough points for a free flight from Raleigh to NYC in less than 5 months. Start using your credit card instead of cash, and you’re on your way to a free trip! Looking for a new credit card? RewardStock will help you find the best one for you!
It’s important to note that there is always a fee for using your credit card. Earning rewards may offset this transaction fee.