For those who have returned to the office, commuting can add significant costs to your budget, especially when your home is far from your workplace. While there may not be many options for getting around these expenses, there are ways to earn rewards on those costs, potentially saving you money and earning back some cash.
Cash back credit cards offer cash back for purchases you make on those cards, from big expenses to everyday shopping. They reward you for spending money, either at a flat rate or in specific categories. Using them strategically on commuting costs can help make the ride to work more bearable.
Understanding Cash Back Credit Cards
There are two types of cash back credit cards in Canada. One type offers a flat rate and is fairly straightforward: if you spend a certain amount of money, you earn cash back.
Another type is category-specific cards, which allow you to choose which categories of spending you would like to maximize. For example, if you tend to use your credit card for vacations and travel expenses, you can find cards that offer more cash back for travel purchases. If you use your credit card for everyday items such as groceries, clothing, pet supplies, or household items, you can find a cash back credit card that allows you to select those categories in which to earn your cash back rewards.
Knowing your spending habits is important when choosing between a flat rate credit card and a category-specific credit card. If you use your card for everything, the flat rate might be your best option. If you only use it for certain items, category-specific cards might better fit your needs.
Cash Back for Commuters
Commuters in Canada can unlock impressive savings opportunities by choosing cash back credit cards that offer a higher earning rate specific to how each commuter gets to work. If you drive to and from work every day, find a card that offers rewards on all your gas purchases. If you take public transit, look for a card that will offer cash back on expenses like monthly passes or individual train rides. And if you’re big into ride sharing, getting a card that will earn you rewards every time you use Uber, Lyft, or another rideshare app can ensure that you’re maximizing your rewards earnings.
Receiving cash back for your daily commutes can make a big impact on your overall budget, since it’s a recurring and unavoidable cost. Consider using the rewards money for similar everyday needs, such as future commutes or groceries. Or put the cash aside to add to your savings account, pay down a balance, or put toward a vacation fund.
Increase the Rewards
To further maximize your rewards, keep your eyes open for special introductory rates. Many cards will have a sign-up offer of bonus rewards, but those rewards can change throughout the year, so wait for the best offer for you before you apply. Once you have the card, check often for bonus offers that are put forward throughout the year. You may earn double, triple, or even five times the rewards for your spending during these periods.
Make Your Credit Card Work for You
Cash back credit cards can help with and even amplify your budget, if you use your card responsibly. Don’t spend extra just to reap more rewards, but use your credit cards as a tool in your financial strategy. In this way, you can spend money to save money, and take the sting out of your commuting costs.
