Credit cards are a big part of our everyday lives for good reason. They make life easier, they make transactions seamless and they let us make purchases that we can pay for later. They also offer a number of rewards, including automatic cash back. Here are 10 credit card stats that might surprise you—and empower you to use the rewards you’ve earned.
Pro Tip: Keeping a high balance on too many cards can damage your credit score. Building and maintaining a good FICO score can open up higher credit limits—and better rewards.
Pro Tip: The key to getting the most out of your rewards is to choose a card with simple or automatic rewards.
Pro Tip: If you’re feeling confused by your rewards program, switch to a card with cash back, which is often the simplest reward to understand.
Pro Tip: Why is cash back beloved? It allows for ease and flexibility. Only 10% prefer points, 9% miles and 4% hotel points.
Slow down. Do the math on rewards.
Credit cards can provide you with more than ease of purchase. If you spend $2,000 a month using your debit card, you’ll get zero dollars back in rewards. But if you spend the same amount using a credit card that rewards you with 2% cash back, you’ll have $40 back in your pocket at the end of the month. It’s worth it to read the fine print, decide which card—or cards—is right for you and start earning rewards.
William Myers is a financial writer based in Dallas.
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