Cash Back Credit Cards

by | Jul 20, 2020 | Money | 0 comments

Cash back credit cards are key to leveling-up your personal finance game. To be clear, only use them (or any credit cards) if you have strong budgeting and savings habits and have a strong tracking system (like You Need a Budget) for your finances. The danger here is obvious: you will negate the benefits of cash back cards if you get into the habit of carrying a balance and racking-up interest charges.

Now that you’ve been warned, take a look at where you do most of your spending and get cards that maximize cash back at those merchants or for those categories. For example, we do a ton of shopping at Costco so the Costco credit card is a no-brainer (you get 2% back at Costco). You also get 4% back on gasoline so we use the card at gas stations too. For other travel related spending we use an airline card, and then we have a card that offers 1%-3% back on most everything else. Pay attention to how you get the money back, too. Sometimes you can transfer it to your bank account daily, other times it is an annual payout, while some offer store credit.

Again, you have to be really careful. We track these closely and have full balance payments setup on autopay each month. It takes a bit of extra with, but is totally worth it.


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