When it comes to using a credit card, many South Africans want to know how to get the most out of their spending. With grocery and petrol prices rising, finding a card that offers good rewards and cash back can feel like a quest for buried treasure. If you and your partner are planning to settle your credit card balance every month, you’re already on the right path. Here’s what you need to know about choosing the best credit card for rewards and cash back.
Understanding Credit Card Rewards
Rewards programs sound great, but how much can you actually earn from them? Many banks market their rewards as generous returns. However, these rewards are often disguised forms of marketing. Essentially, a card may offer 5-10% back on your purchases. But this can come at a cost, as banks usually add fees or inflate prices to fund these rewards.
Know Your Spending Habits
Before you dive into different credit card options, take a moment to analyze where you spend your money. Do you buy groceries weekly? Are you often filling up your car with petrol? Understanding your spending habits is key to finding a card that maximizes your rewards.
Consider making a list of your regular purchases. This includes groceries, pharmaceuticals, and even baby care if applicable. If you travel frequently, certain cards might offer extra benefits. It’s all about aligning your spending with the right card.
Earning Beyond Monthly Fees
A good rewards program should help you earn enough to cover your monthly bank fees. If your selected credit card doesn’t do this, it may not be worth it. Look for programs that allow you to collect points or cash back based on your everyday purchases.
Utilising Online Tools
To help you gauge the potential rewards from different credit cards, make use of online calculators. For example, some banks offer tools that help you estimate your rewards based on your spending habits. This information can be valuable when comparing different cards.
Conclusion
When selecting a rewards or cash-back credit card, it’s essential to do your homework. By understanding the fine print and being aware of your spending patterns, you can find a credit card that suits your lifestyle. Remember, the real value lies in a program that aligns with your needs, allowing you to earn rewards that truly benefit your everyday life. With careful planning, the right credit card can turn your spending into savings.