Having a credit card doesn’t mean that you have to go into credit card debt.

If you are strategic about how you use your credit cards and how you shop. You will find that not only will you not be in debt, but you can make your credit cards work for you.

You first need to know how to get the right credit cards. I only apply for cards that have one or two things, cashback and flyer miles. If you like to travel or planning to travel, flyer miles can save you hundreds of dollars. Frugal people use their miles for hotel stays, discounts, and big trips. Cash back credit cards can get you free products and help pay your credit card bill.

One of the most frugal things to do with a cashback credit card is to stack it with other cashback offers. For example, I use my cashback credit card for online shopping. I pile the card with cash back apps; by doing this, I can get cash back in multiple ways.

Now you don’t want just any cash back. You want a card that gives you the most money back you can get. I try to go for 2% cash back credit cards or higher. However, you have to pay close attention to the wording. Many cards will say ” Up To,” which means that 5% is not guaranteed; you can get any were from 1% to 5%. So make sure the card says 2% or 5% cash back on every purchase.

When it comes to flyer miles, you want to do the same. Make sure that the miles are worth getting. You also want to make sure the miles are not hard to get. The last thing you want is to spend hundreds and thousands of dollars to barely have any points for your next trip.

Make sure that you can pay your cards off in full each month. I ensure that I stay below 30% of what I can spend on my credit cards. For example, I have a card that I use for groceries. I have a grocery budget; therefore, I only spend so much every two weeks. This way, I spend the same amount every month on that card. I use the cash back to pay part of the bill. In the end, I pay less out of pocket.

You must know you will not get rich or hundreds of dollars back; it’s 5% off your total. So, it will not be a lot if you don’t spend that much. However, most cash back cards allow you to use the cash back on the bill, cash it out to an account, or use it towards your purchase.

I like to let my cashback build. I don’t just cash it out or use it tell I have a certain amount on my cards. Then I can use it to pay some or all of my bills for the card, or I use it to shop and pay less out of pocket.

The following is a list of cards with Cash Back and Travel Rewards.

Discover

Capital One

Chase

Delta

Hyatt Hotel

American Express

Amazon

These are just a few; many banks offer cash back as well. Most of your online banks offer higher money back than traditional banks do. Business accounts offer travel rewards. Many store cards offer Rewards like Venus (women’s clothing) and Victoria’s Secret. Walgreens has its own credit card now, and it is also a cashback card as well as PayPal.

Well, that’s all I have for today; I hope this helps you on your journey.

Thank you for reading Everything Frugal.