- You can achieve maximum savings by using 2% cash back credit cards for your vacation purchases.
- Combining your 2% cash back card with a tiered bonus category or rotating bonus card can save you maximum savings.
- Finding credit cards to look at your budget and see where you’re spending the most money helps get the most benefits
The holidays are fast approaching and many buyers are looking for ways to finance their vacation purchases. You may want to buy your son his favorite computer game or that previous gift for your dad. But a review of your finances shows that you are unable to pay them in cash. Like many other buyers, you might turn to personal loan facilities such as instant payday loans, cash loans, and other types of short term loans. Other buyers may turn to cash back credit cards that refund you a percentage of the money you use to transact with them.
Some cash back credit cards can offer you up to 2% cash back, which is currently the highest rate you will find among the widely available fixed rate credit cards.
This article takes a closer look at how you can use a 2% cash back card for maximum savings when shopping this holiday season.
How to save the most with your 2% cash back credit card
To get the most out of your 2% cash back credit card over the coming holiday season, just use it for all of your holiday purchases that you know you don’t have any rewards for yet. high with another card.
For example, instead of using your prepaid credit card for your usual vacation shopping, always have your 2% Cash Back card with you and withdraw it at the counter to increase your savings. Note that the only way to get the most out of your card is to make full and timely payments of your balance each month. Failure to do so incurs interest charges, which in turn can negate any winnings you might earn in cash.
The key idea here is to use the cash back card to pay for any purchases you plan to make within your vacation budget.
Beverly Harzog, credit card expert and consumer credit analyst for US News and World Report, says, âCards with more rewards tend to have higher APRs, so you never want to have a balance.
Also, if you want to maximize the savings with the cash back rewards you receive, you try pairing your 2% flat rate cash back credit card with another card that gives you higher cash back rewards in. specific categories that you are likely to spend the most. .
For example, you might be planning to spend the most on idiots and groceries during the next vacation. If there is a card that can earn you 6% on purchases of up to $ 6,000 per year, 6% on some vacation products, and 3% on some streaming services, you can use it on all purchases. eligible in these categories, and still earn your 2% reward with your fixed cash back credit card.
Therefore, it is very important to “This is why it is so important before you even start researching credit cards to look at your budget and see where you are spending the most money,” advises Harzog.
While cash back credit cards can come in handy when you need to finance your vacation shopping. However, it is important to know your spending habits before signing up for a cash back credit card.
For example, if you spend a lot of money during a restaurant vacation, a cash back card with rotating bonus rewards categories may be of more use to you during this holiday season. However, if you prefer a card that guarantees cash back on everything you buy, a fixed rate cash back card that offers 2% or more winnings is a good choice.
However, the combination of a flat rate card with a tiered bonus category or a spinning bonus card is a good way to maximize your savings. Note that using the right combination of cards combined with the right strategies can save you a lot of money while on vacation.
There is a card there for you right now. You just need to understand your specific needs, spending habits and strategies.