Use Credit Cards for All Purchases and Earn Cash Back

By (Guest Post)

This is not a good time to use credit cards, unless you are paying them off every month. With the economy in such bad shape it is likely that will pay very high interest rates and the company can and will raise your interest rate at any time. If you pay a bill with a credit card you should pay it off as soon as it posts to your account, that is the only way you will get your FICO to go up. You have to ask yourself, is the $50 (5%) in cash worth all the interest you are paying and having $10,000 in credit bills? The average good interest rate is about 12% right now, that is double what it was 5 years ago. Don't be fooled by "rewards".

By Kerry Cowley (Guest Post)

Go to bankrate.com to check which credit cards offer the best rewards. I use a Citibank Rewards Mastercard for all grocery, gas and small stand-alone drugstore purchases because it pays me 5 points for each dollar I spend. The only negative is to get the full 5% you have to wait until you have $100 or more in credit and they're good mainly to redeem for gift cards like Home Depot, Sears, etc. For other purchases I use my Citibank Dividend Card that pays 2% cash back for all utility payments and 1% for everything else. I use my Costco/American Express card whenever we eat out (it pays 3% cash back) and for airplane tickets, hotels and car rentals (it pays 2% cash back for travel). It can get a little confusing for my husband to use the correct card for the correct purchase so I don't make a big deal of it if he accidentally uses the wrong card once in a while.

By

Allison

I googled "reward credit cards" and this helpful list came up in the results:

http://www.creditcards.com/reward.php

By Jonnie (Guest Post)

I use the same technique with my credit card with one difference. My husband and I consider this 'found' or 'free' money and split it between us (much like an allowance) to be used for personal and/or 'selfish' purposes. It is nice to be able to save up for purchasing his Christmas/B'day present, etc.

By Carol Blair (Guest Post)

Would love to know which credit cards offer such good deals like the cash back....none of mine do nor have I seen any outside of Discover...do hope someone will post the cards and possible phone number. Thanks....

By

cjjones

We do the same thing however, our card of choice earns airline miles...travel is important to us.. The only thing that is problematic about this is that many people are so far in credit card debt that they may never recover -- plus I always insure what my interest is, only keep a Visa & MC plus my bank debit card -- I never use a credit card to get cash because of the usery laws but I have moved across country (12K)), purchased an automobile, etc...and actually the credit card companies consider "pay balance monthly people" less than desirable - I probably get a minimum of 2 new cc approved applications per week -- into the shredder they go..I enjoy using someone else's money to earn rewards. But I dont recommend it for everyone...cj in Camas