Don't be fooled by a credit card company's claims that credit cards can help you save money. Finance charges quickly erase any benefits that credit cards offer in cash back incentives unless you pay your credit card off at the end of each month.
Credit cards with rewards can have a benefit. When JC Penney's has a promotion with a certain percent off if using their card, I will use the card and after that transaction is done, I will then immediately pay on my card in cash for the amount I just put on it at the register. You then have a no balance and still get the discount off the purchase. You may also do this at the Children's Place and Sears.
Some reward cards such as Discover Card allows you to use your reward points to buy gift cards at a reduced rate. This has saved our family a lot of money. My husband and I use the same account card for everything, groceries, gas, entertainment, etc. and pay it off every month so we have no balance due (= no interest charges). Then, when I get enough points, I buy $25 gift cards for $20 in reward points at stores where I shop giving me another $5 in savings!
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