Unlocking the Secrets of Top Cashback Credit Cards 

First of all, we need you to know that your money may be wasted with each credit card payment cycle.

Okay, but how do you do it?  If you asked this question, this text was written for you.

The most modern credit cards have a benefit system called cashback. The cashback is sent to your account as points, which can be converted into discounts on your invoice or even gift cards so you can buy whatever you want in stores that partner with your card.

In other words, cashback is a financial innovation that increases the value of your money. For this reason, it is essential that you start to care about it honestly. After all, only you know the value of your money.

Keep reading to learn some tips on this topic.

1 – Maximizing Economy and Efficiency in Money Management

Let's say you spend $1,000 on your credit card every month. This includes grocery shopping, meal payments, car fuel, streaming services, and, eventually, a plane ticket.

Your consumption pattern follows more or less the same rhythm month after month, but there is no incentive for this. You spend this way because that is what your own life demands.

If you chose a credit card offering one point for every dollar spent and each point worth US$0.01, you would have US$10 in cashback at the end of a month.

This amount could be used to amortize your bill payment, meaning that instead of US$1,000, you would pay US$990.

But let's say your card generated more points on some purchases. Take your grocery and fuel expenses, for example, which total US$800 a month. If these points were multiplied by 3, organizing your invoice would be even more efficient.

In this specific case, you would only receive a discount of US$24 in relation to these expenses.

What if we told you that there was a credit card that promised just that? The Blue Cash Preferred® Card from American Express generates a fee of 6 points for every purchase you make at a supermarket and 3 points for every time you use any fuel service.

This is a great product available on the market for those who want to optimize their expenses in general.

2 – Deciphering the Distinctions: Points vs. Cashback

In practice, the differences between cashback and points are minimal. In a direct conversion, your card will always inform the cashback in percentage form, while, when talking about points, it will use a multiplier.

However, you will need to convert points into cashback. On most current cards, each point accumulated is equivalent to US$0.01. So, if you have a balance of 100,000 points, you will have US$1,000 in the form of credits.

Pay attention to these ways of handling your money when choosing a credit card, mainly because of the welcome bonus that most credit cards currently offer.

For example, the Platinum Card® from American Express offers a bonus of precisely 100,000 points when the customer completes US$8,000 in purchases in the first six months of using the card.

The Capital One Venture X Rewards Credit Card promises 75,000 points in the form of miles when the customer completes US$4,000 in purchases in the first three months of using the card.

In cases like this, where the offer takes place through miles, the logic is exactly the same but directed to a specific travel program from an airline or even a travel sales system, as is the case with Capital One Travel.

When a card offers miles, not points, this balance can be transferred to other mileage programs, such as Delta, for example, through a specific rate to be consulted. This type of card is, therefore, ideal for frequent travelers.

3 – Selecting and Using it Wisely

A credit card can work very well in your favor. However, it is essential to make it very clear that there is no standard that can be followed by an issuer. Each bank is, therefore, responsible for its own benefit offering.

So, before sending any credit proposal, it is crucial that you analyze your spending habits and which type of card best suits them.

Comparing rewards rates when choosing different cards that suit your habits is the first step to making a good choice.

After that, it is essential that you compare the interest rates charged by the bank and the annual fee to be paid to maintain your offer.

Another factor to always consider concerns the other benefits that your card can provide, such as travel insurance or health insurance. If these are essential factors for you, be sure to check that the card you choose offers benefits related to this topic.

4 – Optimizing Earnings: Maximizing Income through Strategic Card Combinations

When you start your research, you will notice that there are different types of credit cards that offer equally different benefits.

Because of this, you may not find something on a single card that meets both your spending habits and the annual fee you are willing to pay.

Therefore, it is always important to check all your best options in terms of granting credit before applying for the first card that can meet your needs, especially since your credit score will tend to fall after the first application, reestablishing itself as your relationship with the bank becomes stronger.

Finally, our best tip regarding a credit card that generates points or cashback is always to keep your bill paid in full, especially to avoid interest. If you fall behind on payments or are unable to pay off the debt in full, your points will be the first to be affected.

Making the Final Decision

After these tips, you have unlocked precious secrets related to the world of credit cards and can now choose the card that best benefits you.

If you want to know more about a specific card, access the list of contents on our website and learn more about the advantages of each card in 2024.