Questioning my Credit Card Choice

by astanhaus

Cashback credit cards mean approximately free money. You just have to spend before you receive.

(click on the bold-faced vocab words:))

$40 cashback from my credit card last year.

First thought—Nice!!

Second thought— $40 is 1% of what?????

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Mint’s pie chart showed me how I allocated this chunk of money over the year. The largest chunk of the chunk was going to my waxes. In this area, blondes do have more financial fun.

While replacing my credit card, after my latest oops I noticed my current credit card had an annual fee of $19 with 1% back on everything. I realized there was another cashback credit card from my bank with no annual fee, 2% back on groceries and .5% back on everything else.

The cashback credit card decision was a doozie. My local grocery is so cheap (and clean and the best) that it doesn’t accept credit cards. I decided to stick with my current card—I made a decision that fit my spending habits.

Other things to check on are interest rates, spending limits and if you’re a jetsetter, foreign transaction fees.

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

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