Crunching the Numbers
Think about percentages when you look at credit card options. Specifically: cash back percentages. For example, if you could spend $100 and get 2% back, fuel wise, then for every $2,000 you would get $40. If you could get 3% back, you’d be looking at $60. That could be two tanks of gas, depending on your vehicle.
When you can get cash back on a percentage basis with your credit card, then your regular expenses lose a quotient of their cost. If you spent $10k at various gas stations over the course of a year, at a rate of 3% return, you’d only really spend $9,700, but get the value for the full amount.
Best.CreditCard says the best Visa and Mastercard gas credit cards of 2017 will come from American Express options available at a recommended credit score of 690; you can spend: “…$1,000 in the first three months and you’ll get $150 back.” Furthermore, you get, “…6% cash back at supermarkets and 3% at gas stations.”
Getting 6% on groceries is much better saving. This means for every $100 you spend, you get $6 back. If you spend $300 a month, you get $18 back. Over a year’s time, that’s $216 back in your pocket. It’s like if you’re frugal, by the end of the year, you get nearly a month of these utilities at no extra cost.
Over time this can even offset the costs which increase year to year as food and gas increased by certain percentage points via natural inflation. If there’s one thing you can be sure of, it’s that things get more expensive over time, not less.
How to Increase Your Credit Score
Something else worth considering is that the more purchases you make and pay off on time, the more your personal credit rises. This means you’ll be able to get bigger loans and better rates on certain things like cell phone service and the like.
It’s surprising the kind of deals that are available if you look for them. What makes sense is taking a little time to go online and find what sort of credit possibilities there are. As they say, it’s never too late to start building your credit. You can also rebuild a bad credit score legitimately, though this may take time.
One way to build credit is to make purchases and pay them off on time. Additionally, if you have a recurring bill, pay that off on time. A cell phone bill can do the trick, as can a utility bill, or a car payment. Rent is a little bit iffy and may depend on certain situations; asking a financial advisor may help.
One excellent way to build credit is to take out a loan and pay it off within the time determined initially. This is a great way to build exceptional credit and with reasonable expedience. If you take out a $15k loan and pay it off within a year, that can be a substantial advance on your credit score.
Online Credit Scores
Additionally, you can obtain a credit score online for free, in most cases. You must be careful in this sense, however: negative marks on your credit tend to persist for a long time and are next to impossible to get off your record. Even if there’s been an error, you’ll have the devil of a time removing it.
Still, if you can continue to make purchases paid off on time, you’ll be able to counteract many negative credit effects. Living within your means and keeping a close eye on your finances can go a long way toward increasing personal affluence.
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