The No. 1 Rule for Maximizing Your Savings with Rewards Credit Cards

Tuesday, 9 April 2024, 15:00

Discover the crucial rule to follow when using rewards credit cards to save money. Learn how to pay your credit card in full to avoid costly interest charges and make the most of your rewards. Find out how to manage overspending and build an emergency fund to stay debt-free while benefiting from rewards credit cards.
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The No. 1 Rule for Maximizing Your Savings with Rewards Credit Cards

Overview

Rewards credit cards are a popular way to save money by earning cash back or travel points. However, to benefit from these cards, you must follow a key rule: always pay your credit card bill in full.

The No. 1 Rule

  • Always pay your credit card's full statement balance (or the current balance) to avoid interest charges.

How to Ensure You Can Pay in Full

  • Overspending: Treat your credit card like a debit card to avoid spending more than you can afford.
  • Emergency expenses: Build an emergency fund to cover unexpected bills.

By following this rule and managing your spending, you can maximize the benefits of rewards credit cards without falling into debt.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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