Understanding the credit cards and the best market value they offer is the first step to gaining financial freedom. It requires more than self-awareness to know the ones that can benefit you the most. People spend on traveling, groceries or dining treats using their travel credit cards. However, did you know that replacing your travel credit cards with cash-back cards could earn you more rewards?
Making the Transition
When choosing cash-back cards over travel credit cards consider your spending habits. For instance, you may be spending many cash on household expenses than on flights or travels using your current travel credit card. The truth is that cash-back cards are superior to travel credit cards in terms of the reward programs that people get.
You may find it hard to ditch your preferred credit cards regardless of the actual value they add to your expenditures. It is human to hold on to something you think is more valuable to your life. A 2014 report compiled by Nerd Wallet suggests that only 15 percent of households in the US spend money on traveling. The Bureau of Labor Statistics also reports that 10 percent of US households spend their money buying airline tickets.
Why Get a Cash-back Card?
You will realize that travel cards are only valuable to people who travel a lot. They fail to offer long-term value to non-travelers unlike cash-back cards. A cash-back card gives you more opportunities to redeem your miles or points. It also gives you lots of options that do not require annual fees.
Cash-back cards offer more value to an average spender by giving you the chance to pay out in statement credits or checks. They also match the spending profiles of most households. In this case, you can use them to earn more rewards on grocery, clothing and other household expenditures.