Earn While You Spend: The Dual Advantage of Cash Back Cards and Their Extra Perks

Think about how often you spend money during your typical day. Maybe you go to the gas station or the grocery store, or perhaps you grab a coffee or some lunch. When you are doing this spending, there is actually a way to get back some of the money that you are shelling out for everyday living expenses. In fact, if you are not taking advantage of it, you are missing out. 

So, how can you earn money while you spend it, making all of your purchases cheaper?

It’s very simple. Just sign up for a great cash-back credit card. Not only can a cash back card help you get back some of the money that you are spending on all the things that you buy each day, but you can also get some other very valuable perks from using your card as well. 

Here are some of the biggest reasons why you absolutely should be using a cash back card for anything and everything that you are buying.

Cash back cards can help you earn a substantial amount of money

The most obvious reason to get a cash back card is that the card will give you cash back — and sometimes a lot of it.

Let’s say, for example, that you spend around $4,000 per month on things that you can charge, and you get a card that provides a flat 2% cash back on everything that you buy. If your total spending adds up to $48,000 per year and you get 2% of that back from your credit card, you end up with $960 coming back to you for that year. 

This is basically free money that you would be passing up if you didn’t use a cash back card.

Of course, you do want to make sure you are only charging things you can pay back when you are billed for them, so you don’t get hit with interest, the costs of which would far exceed the rewards. But if you are just using your card for all the stuff you have to buy anyway to live your daily life, then you should be able to pay it off in full and just let those rewards hit your bank account. 

Cash back cards can have other benefits too

Cash back cards do more than just allow you to earn money when you spend. There’s a dual advantage to them in that you can earn as you cover your expenses and take advantage of other benefits and perks. Other advantages of charging everything that you can on a cash back credit card include:

• Building credit as you use your card and pay off the balance. This will make car loans and home loans more affordable to you, help you get jobs where you have to undergo a credit check, and potentially result in lower insurance costs since credit is a factor when calculating insurance premiums in many states. So, as you are spending, you’ll be making other transactions cheaper. 
• Gaining access to consumer protections. Many cash-back cards provide added protection for the things you are buying. If you purchase items like appliances, for example, you may get an extended warranty from your card issuer that gives you more time for repairs to be covered. If you are traveling, your card may come with trip interruption insurance. 
• Avoiding interest. Some cards have 0% APR periods that allow you to pay no interest on transferred balances or on new purchases for a period of time after you open the card. These can save you a ton of money if you refinance high-interest credit card debt or pay for something you need immediately but have to finance over time. 

As long as you aren’t going to go crazy with your card and drag yourself into a substantial amount of debt, there is absolutely no reason why you should not be using a cash back card to get the dual advantage of earning money and getting perks. You should look into your options for cash back cards today to find one that’s a good fit and start charging all you can on it. 

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