Understanding how you save with your credit cards can help you maximize benefits. Here’s a breakdown:
1. Cashback Cards
- Instant Savings: When using a cashback card, you receive real-time savings of 1/2/5/10% on your purchase.
- Savings Applied at Transaction: The discount is applied immediately at the time of the transaction.
2. Rewards Cards
- No Immediate Savings: You pay the full price at the time of purchase.
- Savings on Redemption: Rewards or travel benefits are considered free or discounted only when you redeem points later.
No Double Dipping: You can’t use both cashback and rewards on the same transaction for extra savings.
Beware of Misconceptions: If you’re trying to double-dip or if someone suggests you can, be cautious. It might be misleading.
Stay smart and make the most of your credit card benefits!