Should you opt for credit card points or cash back rewards? According to a recent report by creditcards.com, most Americans opt for credit cards with a cash back reward. However, before you quickly sign up for cash back rewards, there are a few things you need to consider.
In this episode, we’re discussing American credit card trends, and how you can make the most out of your credit cards. You’ll learn how to determine what type of credit card is best for you, and how to maximize its benefits!
On this episode you’ll learn:
- Why cash back rewards might not be as enticing as they sound.
- How to choose the right card for your needs.
- What types of rewards we value.
- And more!
Why Cash Back Rewards Might Not Be As Enticing as They Sound
Cash back always sounds like a great idea, but did you know that you cannot claim cash rewards without taxation? If you receive cash rewards, your credit card company will send you a tax statement at the end of the year and you will be required to report and pay taxes on the amount.
How to Choose the Right Card for Your Needs
Instead of automatically claiming cash back rewards, we implore you to take a look at what your family values, and what you spend the most money on. You have to know what your priorities are in order to make the most financially intelligent decision. Maybe you want credit card points for gas, Costco, or Disney.
What Types of Rewards We Value
In our family, we value traveling, so we found credit cards that offer travel/airline rewards. The best part is, you can use your business credit card rewards for personal travel without taxation or penalty.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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