Credit cards sometimes get a bad rap. And, sure, they are a big responsibility and can get you in trouble if you’re not careful. But at DEXSTA, we think it’s all about how you use them. Here are three ways you can cash in on your credit card spending. 

1. Build your credit 

It’s probably no surprise to you that a credit card directly impacts your credit. If you have too many cards open or close them without researching the impact, you could harm a score that may have taken months or years to build. There are a few simple ways to build credit with a card: 

Pay on time and in full: If you can’t pay off your card in full each month, be sure to pay the minimum amount required on time. Automatic payments can help if you want to streamline the process. Not making a payment in time will result in accrued interest, late fees, and credit bureaus’ eventual notification. 

Know your spending limit: Credit card limits vary from person to person. Know your limit and stick to spending well below it. The sweet spot is using only one to ten percent of your limit, as using more than thirty percent damages your score. 

Pick a card that suits your needs: Spending time deciding which card is best for you and your goals will save your credit down the line. The more research you do, the fewer cards you’ll need to open, which helps your overall score. 

Ask yourself questions like: what’s the annual percentage rate (APR)? Is there a fee? And what are the rewards? 

2. Earn rewards

Speaking of rewards, if you find a card that has them, you can cash in on your credit card spending. Think of it as a give-and-take relationship. You may be spending money in the present moment, but you’re hopefully building toward rewards you can use for future savings. 

Cards like DEXSTA’s VISA Platinum Rewards can give you points to cash, travel rewards, and merchandise rewards. It pays off to check expiration dates, too––pro tip: ours don’t expire. Other card features like no annual fee or over-limit fees are standard with DEXSTA, but rewards nonetheless. 

3. Transfer cash-back to savings

Transferring cash-back is a tool that many cardholders might forget about. Instead of redeeming your rewards for travel or merchandise, you can use them for savings. This could be especially useful when travel is restricted as it is now or if you’re saving for a bigger goal––like buying a house. 

Open a credit card with DEXSTA

Opening and maintaining a credit card doesn’t have to be an overwhelming thing. If you’re worried about how credit card spending will impact your finances, the above tips will help you spend smarter.