Enjoying Cash Back Credit Cards Responsibly

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Is there a right way to use cash back credit cards?

Enjoying Cash Back Credit Cards Responsibly

One of the major pitfalls of cash back credit cards is that you must spend money on your credit card in order to get any cash back. When you do this, you run the risk of amassing interest-accruing debt for the sole purpose of gaining cash back rewards on your expenditures. It goes without saying that they aren't really rewards if your interest outweighs them.

Here are just a few tips to follow in order to get the most out of your cash back credit cards:

  1. Pay your balance every month. Don't let your spending accrue and be subject to interest.
  2. Don't spend money just so you can get a reward. Only buy the things you need from the stores you can afford. Don't buy items simply because you could get cash back--that's wasteful spending and defeats the purpose of the reward.
  3. Use your rewards to pay off debt. If you really want to maximize the effectiveness of your cash back rewards, use them to pay off other interest-laden debt.

   

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