Actually Not Knowing About Credit Card Rewards And Cashback
Financial Management

Actually Not Knowing About Credit Card Rewards And Cashback

For a lot of people a credit card can the biggest reason that one accumulates massive debt as people keep paying the minimum balance to the point where the interest rate is so high to the point where one cannot pay it off. So a lot of people are actually taught to never use a credit card period so that you can never spend more than you actually make. But the surprising thing was how I was reading that there are actually a lot of people who don’t even know that you can get cashback rewards as an example.

As well, another point I heard was how many people thought the way interest rates work on a credit card is once you buy an item you start accumulating interest fees. For example, buy a one dollar item and everyday you will have to pay say once cents of interest on that unless you pay it off right away. That’s not how it works of course where you have a billing period every month. If you pay off that balance fully then you don’t owe anything.

That is why if you use a credit card responsibly it only makes sense to try and use it as much as you can versus cash since you can get extra benefits such as cashback reward for doing so. If you can’t pay it off every month in full then you should avoid it. But it is very surprising to me that people actually had those perspectives on how a credit card works.

Some people were even laughing how financial literacy isn’t exactly a topic that many people studied. I would have thought this would be common basic knowledge though. It almost makes you wonder if there legitimately needs to be basic courses in school on how things like a credit card works.

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