How To Use Credit Card Rewards To Cut Down Spending
Many credit cards feature reward programs that refund you a percentage of your purchases in the form of points and discounts. Some of them can actually be used to reduce your online shopping bill.
If you’ve been shopping online more than usual over the past few months and enjoying the safety and convenience of home delivery, here’s some more good news. Credit cards like Discover it® Cash Back and Capital One’s Venture® Rewards Credit Card can be used when shopping on Amazon and paying via Paypal, two of the biggest names in ecommerce today.
To help you save money on your online purchases, let’s take a look at the rewards offered by these two cards and how you can use them to your benefit.
Discover it® Cash Back
If you have a high credit score and make a lot of online purchases, this card could be an excellent choice. Its competitive rewards program includes a cashback option that you can use toward Amazon purchases.
- This card is marketed at customers with a high FICO score and has no annual fees. The standard APR varies from 11.99% to 22.99%
- You’ll receive 5% cashback on purchases at selected retailers, up to a quarterly maximum. After this threshold has been reached, you’ll receive 1% back on subsequent purchases
- At the end of your first accounting year as a cardholder, you’ll receive a bonus amount that’s equal to your cashback rewards for the past 12 months
In addition to using your rewards for Amazon purchases, you can also use them when paying with Paypal at millions of merchants worldwide.
Capital One Venture® Rewards Credit Card
While this card caters primarily to frequent travelers, it can also be used for online purchases. Amazon currently offers the option of reducing your total bill by using Capital One Venture® Rewards.
- This credit card also requires a good to excellent credit score for approval. The annual fee is $95 (waived in the first year) with a standard APR of between 17.24% to 24.29%
- Travelers will benefit from a 50,000-mile sign-up bonus provided that they spend $3,000 on purchases within the first three months after the card is issued
- Global Entry and TSA Precheck users will receive up to $100 as a statement credit
If you happen to be shopping on Amazon and paying by Paypal, you may be able to stack your rewards from more than one card and increase your savings even further.
Once you’ve started reducing your online shopping bill you won’t want to stop. Looking out for promo codes and special offers is a great way to make your purchases even more affordable.
- Promo codes may appear on the website itself while you’re shopping, often in a pop-up window. Once you enter the code, you’ll receive a set percentage off your purchase
- Many retailers run online campaigns and sales featuring super-discounted items. You could find anything from summer clothing to new smartphones at excellent prices
Earning cash back rewards is one of the perks of having a credit card. You can use them to reduce your online shopping bill substantially. By applying your rewards to your final checkout balance and using promo codes, you’ll save even more on your purchases than you previously expected.
If you’d like to apply for one of the cards in this article, you’ll want to check your FICO score by requesting your free annual credit report before you apply.