So today I decided that for my Mastercard credit card I am going to switch it from an air miles reward plan to a cash back credit card. The reason for this is that I think I want to try something different next year when it comes to making extra money which will involve using the credit card a lot more.
I always said that people are throwing away free money by not taking advantage of the rewards on credit cards as oppose to just using cash, so maybe this will be a great way to see how much I can accumulate when am specifically trying to earn as much as possible.
As of now I currently have a plan where for every $40 I spend on the card I get one air miles point. It’s not exactly great, but then again I treat it more as a bonus and incentive to stay away from cash whenever possible. I don’t like paying for annual fees either as you have to spend a lot to get say $90 values when it comes time to redeem your points. As you can see here, these are the options that I have:
So instead, they have this cash back option where for every dollar that you spend you get 0.5% cash back. Similarly, I don’t really want to pay the annual fee to get a 1% rate.
While I’m sure too there are credit cards I can apply for that would offer the one percent, I’d rather not get more credit cards than I need for simplicity sake. I did submit the request to my bank to change it, so I now just have to wait. Will be interesting to see how this goes.