Issued by the Spanish bank Santander, the Ultimate Cash Back card offers some good perks, but two of the best ones disappear after the first year of having the card. The card’s 0% APR promotion and its bonus rewards rate of 3% cash back on all purchases expire after 12 months.
After that, the card earns a flat 1.5% cash back, which is in line with the industry standard, but it’s certainly not the best rate out there. For those who want a card with more long-term value — or who are ineligible to apply due to the card’s residency requirement — consider a different cash-back credit card.
Here’s what you need to know about the Santander Ultimate Cash Back card.
1. Card eligibility is restricted by residency
As of this writing, the Santander credit card is available only to residents of Washington, D.C., and 12 states: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. Also, Florida applicants are limited to residents of Miami-Dade, Monroe and Broward counties.
🤓Nerdy Tip
The terms and conditions for the Santander Ultimate Cash Back card state that applicants may not qualify for the card if they already have another credit card issued by Santander Bank.
2. The 3% rewards rate is excellent, but there are caveats
True to its name, the Santander Ultimate Cash Back card earns an impressive 3% cash back on purchases — but only for the first 12 months after opening the account, and only up to $20,000 in spending. After that, purchases earn an unlimited 1.5% back, a solid but unremarkable rate.
Also, unlike many other cash-back credit cards, there’s no upfront sign-up bonus. Still, if you were to hit the $20,000 spending limit, you’d earn $600 in cash back in Year One, which is triple the value of the sign-up bonuses for several excellent cash-back credit cards. (You just won’t get the bonus immediately, as you would with those other products.)
3. Rewards may be redeemed for cash and more
Redemption options for the Santander credit card include statement credit, gift cards, electronic certificates and merchandise.
🤓Nerdy Tip
A Santander spokesperson said that having a Santander bank account increases one’s odds of being approved for the Ultimate Cash Back card.
4. Fees are minimal
The Santander credit card is refreshingly light on fees. The card has no annual fee, foreign transaction fee, returned payment fee or cash advance fee. And while the card charges late fees up to $35, that amount is slightly less than most other cards, which charge up to $41 as of this writing.
The balance transfer fee on the Santander credit card is $10 or 3% of the transferred amount, whichever is greater.
5. Intro APR offer gives cardholders a break from interest
Another perk of the Santander card is its 0% APR promotion that pauses interest on purchases and balance transfers for 12 months (as of this writing). However, if you and interest charges need more time apart, consider another card. It’s possible to find cards with 0% APR periods of 15, 18 and even 21 months.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The cashless envelope method is a fabulous way to jumpstart your budgeting process.
It is proven that the cash method will help you to save money, get out of debt, and make sure you’re spending your money that you actually have to spend.
There is no overspending allowed with the envelope system.
When using envelopes whether with cash or cashless, if you are out of money, you’re out of cash to spend.
In today’s society, more and more transactions are being done online, which makes using the “traditional” cash envelope system very tricky and complicated. So many people are looking into alternatives – specifically using a cashless envelope method.
Personally, a cashless envelope system is something that we have used for many, many years. As much as I would like to say that I’m great with cash. I’m not. I tend to misplace it more often than I prefer. Also, I do enjoy my credit card rewards that I receive the extra couple $1,000 helps to pay for quick travel getaways.
Today, in this post, you are going to learn how to be successful with the cashless envelope method. We’re going to outline how to use the cashless envelope system, provide the trackers and templates that you need.
Then, you can start budgeting with success today.
How do you Use envelope System without cash?
The method of using the cashless envelope system is much like the traditional cash envelope system, except you’re actually not physically stuffing your envelopes with real cash.
You are tracking your spending either with a printable template or a spreadsheet. Whatever method you choose it doesn’t matter. It is the basics of cash system that matter.
The principles are the same. You cannot spend more money than you allocated for a certain category.
Later in the post, we will discuss how to track your “cash” using either a printable template or a spreadsheet.
Reasons to Not Use Cash
There are many reasons you may not want to have cash on hand. Here are some of the most popular reasons not to use cash:
It gets lost. Personally, I am guilty of misplaced cash. Thankfully, it has always appeared. But, it is hard when you can’t find the money you need to make purchases.
It gets stolen. Getting your wallet stolen sucks. Getting your wallet stolen when you just stuffed your envelopes with cash is even worse. You are left without spending money for a week or two.
You can’t earn rewards. A very simple way to earn extra money is with rewards on your credit or debit card. You can earn 2% cash back by paying with these cashless methods.
Counterfeit money is a real problem. Unfortunately, there is more counterfeit money in circulation than you would believe. The cash withdrawn from the bank is always checked. But, the change you receive from stores may be counterfeit.
Bacteria on cash. Have you thought about how many people have touched your $20 dollar bill? There is a lot of stuff lurking on cash and coins. Nowadays, many companies are not even accepting cash.
There are many more reasons you may not like to use cash. Plus you need to account for online purchases where another payment method is a must.
Now, you are going to learn to manage money by using the cashless envelope system.
How to Use the Cash Envelope System Without Cash?
Just like the traditional cash envelope system, you are allocating money to each of your categories or envelopes.
Instead of actively putting money in envelopes, you are tracking your spending with a spreadsheet, an app, or a paper cashless envelope tracker.
First, you need to decide what cash envelope categories you want to track. Typically, these are the most popular envelopes to use “cash” for:
Groceries
Eating Out
Clothing
Gas
Gifts
Entertainment
Haircuts / Beauty / Personal Care
Pocket Money or Slush Money
However, you can use as many of the budget categories as you want.
1. Create a Budget
The first step to proper money management is to make a budget. First of all, a budget isn’t meant to be constricting, it is a money plan of how you want to spend your money.
By creating a budget, you are prioritizing where you want to spend your income.
It is a good thing to have a budget even though 69% of society doesn’t know how they spent their money last month (source).
If you have never created a budget, then I would highly recommend our Budgeting Course that goes into detail about how to properly create a budget.
Related reading: How to Make a Budget in 7 Simple Steps
2. Track Purchases Immediately
When you make a purchase, you need to write it down on your cashless envelope tracker – just like you would when using cash. You need to see the money being subtracted from your account.
This is what makes you understand the impact of every single purchase you make over the month.
If you can’t do it right away, save the receipt and write it down when you get home. Just don’t forget to do it!!
By waiting more than a day to track purchases, you may get caught over budget on your envelope budget.
You must stay on top of your envelope budgets!
3. Money is Gone, It is Gone
Don’t get caught with overspending! That is a quick cycle to end up in debt or even worse “borrowing” money from other envelopes.
This is where the rubber meets the road. That popular saying will make sure you don’t continue spending money once you are out of money.
The temptation to spend money will happen over and over. You just need to find ways to stretch what money you have left or be patient until you have more money from your next paycheck.
Make adjustments in the next month for categories where money always seems to be gone early.
4. Money if Leftover, Then Roll it Over
This is why the cash envelope system works so well.
It helps you to create sinking funds. When using the cashless envelope method, it helps you to have one BIG account with all of your sinking funds collected together.
When using a spreadsheet or printable, you can visually see how much money you have rolled over from month to month.
Here is a great example: You set aside $50 a month for gifts. But, only spend money when for birthdays and Christmas and not every month. Typically, you would roll your money over to the next month. So, when Christmas comes you have more money to spend.
For those, who are actively trying to get out of debt, you may take your money left over and put it towards debt. Just make sure those are discretionary accounts that you don’t need money for in future months (spending money would be a good example).
You don’t want to be caught without money set aside for a big bill.
virtual envelope system
The virtual envelope system is the wave of the future. The use of cash is going away.
While cash in the bank is still king, the actual physical transaction of paying with cash is going away. The use of debit and credit cards continue to increase.
You need to have a virtual envelope system in place, so that way you can track your purchase purchases in person, online, and those that are reoccurring.
With the virtual envelope system, you will use a spreadsheet that tracks your spending with a couple of inputs from you. The other option is to use a cashless envelope app with a monthly fee like Empower or Qube Money.
Thankfully, here at Money Bliss, we created a virtual envelope system that works perfectly for cashless budgets and creates sinking funds for you. Learn more about the cashless envelope spreadsheet here.
cashless envelope template
A simple way to start using the cashless system is with free cashless envelope trackers. There is nothing super fancy about the system.
You just have to track your expenses.
This is exactly how do you do the envelope without cash.
Here is a perfect example of how to use the cashless envelope template:
These are great for a mom on the go! Simply stick them in your wallet and write down your purchases.
Ready to Use the Cashless Envelope System?
While Dave Ramsey has created a movement of using cash envelopes. It is becoming harder and harder to use in a cashless society. So, you must find something that works for you.
Personally, we prefer the virtual envelope system. It allows the flexibility of being cashless while still benefiting from the cash envelope system.
To be successful, you must track your spending.
Transitioning to a new system will have some quirks, but over time you will get used to it. The pros are you will live with your means. Then, you move away from living paycheck to paycheck.
By tracking your spending with the cashless envelope method, you are putting your money management forefront and can see your pain points with money.
You can download your cash envelope trackers from our free printables area.
For those who want to use the cashless envelope spreadsheet, then enroll in our in-depth budgeting course.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: The exact habits you need to learn how to be financially stable. Financial stability is when you are in control of your finances. Make sure you have these money habits!
Are you ready to move from financially sound to financially stable?
Well, the good news is this is something you can easily accomplish and we are going to show you exactly how to do it in this post. Learn over thirty simple traits to prove to yourself that you are financially stable.
One of the great things about being money financially stable is it means that you are less worried about money. You are established with your finances and you are consistent on how you spend and save your money.
It is a great feeling to be financially stable because you know that your bills are taken care of and everything that you want to spend money on that you actually can!
The Money Bliss Steps for Financial Freedom is a guide to help you become financially independent. Along your path, you will go through many different journeys and many different seasons, but it is a great feeling to know that you are in a good place financially.
Becoming financially stable is something that anybody is capable of doing.
It just takes determination, a growth mindset, and a desire to be wise with your money.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What does Financial Stability Mean?
Financial stability is when you are confident in your personal financial situation. You have money to pay monthly bills, set aside for big purchases, invest in your future, and be able to sleep at night.
When you can do these above things, that is when we can say that a person is financially stable.
When you define financial stability, the definition should motivate you to improve your money situation because the more you work towards becoming financially stable, the better the opportunities present themselves.
It is one step up from being financially sound and moving closer to financial security.
Another way of saying financially stable is of good financial standing.
Overall, the financially stable meaning is you have made wise decisions that will ultimately let you live the life you want. One step closer to financial freedom.
How to Be Financially Stable
The good news is you only need to do three steps to become financially stable plus they are not complicated.
This is exactly how do you become financially stable…
It is just a habit that you need to start doing.
If you have bad habits with money, then you are not going to have the success with money that you need. If you have good habits with money, then you will end up becoming financially stable.
Just a side note, If you need a good book on changing bad habits into good habits. I highly recommend Atomic Habits by James Clear. It is a great book to help you change the habits that need to change, and start to live the life that you want.
Now, back to the three steps to becoming financially stable.
If you want to learn how to become financially stable, then this is what you need to do.
1. Pay Yourself First
This is the most important habit that you can do to become financially stable.
Many times, I feel like I sound like a broken record about the importance of how you need to pay yourself first. It doesn’t matter if it is your very first job in high school, starting out at 21, or quickly approaching your 50s, you need to pay yourself first today.
Take your paycheck and automatically save a certain percentage.
If you have never saved before start with 10%.
If you know that your spending is out of control plus you have the income to save a higher percentage, then plan to save 20-25% ot your income.
When you first begin to save, the goal is not the amount you save; it is about the first time that you begin to save.
It is about proving to yourself that you are capable of saving and seeing that account, increase over time will continue to motivate you.
So, if you want to be financially stable, then you must pay yourself first. Set up a separate savings account or an investment account where you will put that money.
2. No Debt
Second, no debt. Period.
If you cannot buy something in cash, then wait until you have the cash available to make the purchase. Do not use debt just because you have access to credit.
If you want to be financially stable over the long term, that means you must eliminate consumer debts.
Now, before you freak out and say, “I can’t be financially stable because I have so much debt that is dragging behind me and holding me back.” Don’t freak out. You can make a plan to get out of debt.
By getting out of debt, you are proving that you are on the path to becoming financially stable.
In the meantime, you just don’t go into any more debt.
If you are in your 20s, steer clear from debt and do not get into the debt trap.
The Trickly Mortgage Debt Conversation….
Because owning a house comes with a price and it comes with a premium since there is a cost to upgrade it, pay property taxes, and so much more. Plus this varies greatly in an HCOL vs LCOL area.
Do your research and figure out is it more cost-effective for you to purchase a home and pay the mortgage payment or is it better to rent and not have the responsibilities of being a homeowner. This is a personal situation that you must determine what works best for you and it is very location and market driven.
For example, we bought in a high cost of living area before the prices skyrocketed. Thus, our mortgage is way less than the cost of rent. So for us, we are still financially stable because we have a mortgage because it is cheaper than rent (and by a lot).
On the flip side, if you are just starting out and trying to purchase a home, it may be more cost-effective for you to keep renting to stay out of debt and become financially stable quicker. Then you will be able to reach financial independence faster.
3. Invest Your Money
The last piece to becoming financially stable is you must invest your money.
This is not the time or place just to be stuffing money under the couch or in a savings account that is earning .02%. You need to invest your money in the stock market.
The best way to invest is on a consistent basis. Every paycheck you invest a certain amount consistently. It does not matter if the market is up or the market is down.
The returns from investing will be greater than doing nothing with your money.
Doing nothing with your money means that you are actually losing money when you account for the cost of inflation.
So, you must invest your money.
One of the types of income is passive income, and you can earn passive income through investing.
A huge step to becoming financially stable is to diversify your income. This may not be as important to you today, but if you are in that category of “I don’t want to work anymore” or retirement is on the horizon.
Your financial future can be secured through investing in your portfolio.
Recap – How to be Financially Stable at any Age
You can become financially stable at any age – 20, 25, 30s, without college, or even in your teens at 17 or 19. You can even be financially stable with a low income.
The formula is still the same for everyone.
These are the three things you must do for financial stability:
Pay Yourself First
No Debt
Invest
If you are serious about wanting to be financially stable, these are the three steps that you need to take. It is not rocket science.
It is very simple, clear steps to make sure that you are successful in the long term with money.
Now, let’s dig into the habits and traits of someone who is financially stable.
Learn:
Traits of someone who is financially stable
This is when we can say that a person is financially stable.
In this section, we are going to dive into the qualities, traits, and habits of people that are financially secure.
These are things that you can start working on today. Over time you will begin to make better solid money choices going forward.
These are solid money habits that will transform your financial future.
These are simple and easy ways for you to become financially secure.
1. Emergency Fund
An emergency fund is the backbone of financial security – there is absolutely no way around it.
The goal is for you to never use your emergency fund. But let’s be real, there will be a time or a place that you will have to dig into your emergency fund because an actual true emergency exists.
A financially stable person has an emergency fund to fall back on when times get tough.
Here is more information on how to build an emergency fund and the steps that you need to build one fast:
2. Plan to Be Debt Free
Like we said earlier, one of the basic steps of how to become financially free is to have no debt.
However, for too many people that would automatically say that is not in the cards for me. Paying off my debt is way too difficult. But, not for the financially stable person!
I am here to tell you that you can become financially stable by creating a plan to becoming debt free and actually stick to it.
That means your debt balance is going down each and every month. Plus you know your debt payoff date because that paying off debt is one of the best decisions that we ever personally made.
Also, it does not matter if good debt and bad debt – the concept promoted by many financial gurus. Debt is debt.
Debt means that you owe somebody else and you are going to have to pay it back at some point for a premium. So, the sooner you pay off your debt, the better of you will be.
3. Save 20% of Income
Do you save at least 20% of your paycheck? If so, then you know what financial stability means.
When you are financially stable, you are not living paycheck to paycheck and you automatically save money at the beginning of the month when your paycheck comes in.
The best place to start is to start saving at least 20% of your income.
If you are not quite there (yet), then look at one of our main money saving challenges. They are plenty of savings numbers to start small and then work on the bigger challenges. Prove to yourself that you save money.
Since saving money is easy for them, they work on increasing their savings percentage each year. Personally, I find it a better challenge to increase that savings percentage more than anything else.
4. Spend Less Than You Make
In order to make progress, your expenses are less than the money that is coming in.
That does not mean the amount of money coming in is the same amount that you can be spending. The reason why is you have to account for the money saved adn invested.
You learn how to live below your means.
This may mean giving up a coffee, a trip to the salon, happy hour, or something you do out of habit in order to start saving money.
Remember, the goal for this type of person who is financially stable is they spend less than they make. They may spend on the little luxuries here and there because they are able to do since they have set money aside and they are not overspending.
5. Mastering Money management Skills
The best trait of somebody that is financially stable is they understand the basics of money management.
This does not necessary mean the person is in love with spreadsheets, budgets, numbers, and reads money management books every single second. This means they understand the basics.
You earn, you save, you spend.
You save more, spend less, and you prioritize your money goals to make sure you are making the progress on your financial journey that you want to do.
Many times financially stable people start to enjoy learning about money management and tend to dive into their finances even further. Once they get started, they want to learn more about their money situation, and how they can improve their finances quicker by making a few more changes.
6. Their Finances are Exciting
You don’t have to be an Excel spreadsheet nerd to find that your finances are exciting.
This type of person enjoys waking up checking their balances and seeing a positive increase in their net worth.
They find it exciting, they find it motivating. It makes them realize all of their sacrifices is making a difference in the long term. They look at the greater picture and saying I’m not going to work till I am 65; I may look at retiring when I am 50.
They are working hard today and enjoy finding ways to improve their money situation; which they find exciting and fun. You love quoting these money mantras daily.
7. Month or More Ahead on Bills
A financially stable person uses their income from this month to pay for the next month. They are not living behind where the income coming in is going is paying for the current expenses.
They are actually a full month, maybe even two, maybe even three months ahead of their bills.
For example, their paycheck from July will be their August spending. For some that want an even bigger cushion, their money earned in July is actually going to be for their September spending.
That is a sign that somebody is financially stable and has the ability to avoid temptation and not to spend the extra money.
8. Sinking Funds are a Priority
A financially stable person sets aside money regularly for expenses in the future. These are called sinking funds.
These buckets of money is money allocated for a certain purpose.
One of the most popular sinking funds that most people have is for vacations, kids activities, home repair, or car repair. Those are probably the most common.
You can have as many sinking funds as you want as a financially stable person. Another option is just to have one big sinking fund that will cover whatever is needed in case something be happens. A wise person knows how much money they need to cover these expenses.
A financially stable person utilizes sinking funds to make sure they are able to meet unexpected expenses when they happen.
9. Invest in Stock Market Consistently
In the last two years, the stock market on average typically earns 13.9% each year (source).
The reason that this is important is your money can make you money without you doing anything.
Once you have your investment account set up and automatically contribute a slice of your paycheck, then you select a fund or a few stocks of companies you believe in. Starting your investing system is not as bad as you would think.
By investing in the stock market consistently, you are more likely to have higher returns than somebody who invest once a year, twice a year, or three times a year.
By investing either every week or every month, the likelihood that your account size will increase is greater than when you try and time the market.
I’ll be very honest…the average person has no idea how the stock market is going to react and even most experts. However, you can take an investing course, like Trade and Travel with Teri Ijeoma, and learn about buyers zones and seller zones. This is the best financial knowledge someone can have and you probably will not lose money by attempting to figure it out yourself.
This investing course is a great resource and something I highly recommend all of my readers to take. Read my Trade and Travel review.
Because the amount of the course is eye-opening, I can pretty much guarantee it will be less than the amount that you can lose in the stock market by yourself.
That is what a savvy person would do – invest in the course and then invest in the stock market.
10. Focused on Next Money Goal
A financially stable person knows exactly what they have done to get where they are today. Plus they know exactly where they are headed to in the future.
They don’t waver on their next money goal.
They have short term financial goals that they are determined to make happen. That is their number one or two priority in their life because they know that by reaching their money goals, they will have more time freedom in life.
At the end of the day, having money equates to freedom.
This is not the same as having money does not equate to success. There will always be the age-old debt on whether is money everything.
The answer may surprise you, but at the end of the day… money does equal freedom.
11. Saving for Retirement
If I don’t save for my retirement, then who else will help me in my older golden years? That is exactly what a financially stable person would ask.
They know that social security and all the government programs might run out of funding, so they are focused on saving for their retirement and most financial state. They are in control of what they are able to control. You cannot control future government programs or tax rates.
In addition, they are using a Roth IRA to get the maximum contributions that they can have each year for retirement. They are savvy enough to get the maximum contribution from their employer’s 401K match.
This type of person won’t be wondering… What Happens If you Don’t Save for Retirement?
12. Able to Vacation When They want
These are the people that you probably envy the most because they paid cash for the vacation that you financed.
A financially stable person is not worried about having to pay for the trip on the way home. They are savvy and use a vacation fund that they contribute to on a regular basis.
That right there helps them to go on vacation each and every year.
Don’t be jealous! Join the bandwagon and start traveling the world today.
13. Money Set Aside for a Rainy Day
As much as we like to think we can predict the future, in reality, we do not know what the next day, week, month, or even year can bring. And in many circumstances, you may be caught off guard when difficulties come.
If you have a loss of income and still have bills to pay today, that is where having a rainy day fund set aside will help you be prepared.
This is a step to becoming financially secure and a long-term habit to embrace.
A person who has a rainy day fund that will cover at least six months of living expenses is somebody that is financially secure.
They know that hopefully, they will not have to use that money, but in case they do, the money is available to them.
14. Don’t Cry When Something Breaks
When you’re financially secure, you know things that are going to break.
And as much as it sucks, you are not going to be in tears, trying to figure out how to pay to replace that item. You understand the concept of… It is what it is you move on.
Replace the item and you go on with your day.
Since you know you have money set aside for various purposes, there is no reason to cry. It may not be how you feel like spending money, but that is just part of life.
When you are financially insecure and a light comes on in your car, that is a red flag that something is wrong. Many people freak out because they don’t have the money set aside for a $500 or $1,000 repair.
So you know when you are financially secure when you can laugh it off, shake it off and move on with your day.
15. Fun Spending Can Happen
This is one of the best reasons for being financially secure…you can spend money!
When you decrease your other expenses, you can increase the amount of fun spending. There are great benefits to becoming aware of your financial situation.
Too many times, people give up to their money situation. Instead of saying, no, no, no all the time, you will get to a position where you can say yes yes yes! I want to do this and this!
You do not feel guilty about spending extra money!
At this point, you know you have earned whatever it is you want to spend money on.
16. You Can Sleep at Night
This is one of the best traits of a financially secure person! Their finances are NOT waking them up in the middle of the night wondering “oh my gosh, how am I gonna pay my bills, how am I going to pay my rent, how am I going to pay my car payment, I am sick of my job, etc.”
You quit worrying about do I have enough money to make it to the end of the month. That is financially security right there.
When you can sleep at night knowing all of your bills, expenses, and saving are taken care of. You know deep down that you are on track of your financial future.
That is financial security at its best.
If you are in a situation right now where you can’t sleep at night, then you need to learn how to drastically cut expenses. You must get a hold of your situation before it spirals any further out of control.
17. No Frivolous Spending
Financially, even though a financially secure person can spend money when they want. They have the money to be able to spend, right?
Most choose not to be frivolous with their money.
(Hint: that is why they stay financially stable.)
They tend to be a thrifty person knowing a good price to purchase an item. They know when something is overrated or overpriced.
Even if they can afford it, they are just not willing to spend money on it. That is okay because they are in the situation of being financially secure because of the solid money decisions they have made.
Spending frivolous money here and there can up quickly. Even something as low as $10 or $20 here or there may not impact your financial picture in one day. If you add it up over the course of a year, it can become $3,650 or $7,300. Just by frivolously spending a small amount each day.
18. Know Your FI Number
Your FI number will help you to make the jump to financial freedom.
You know what it will take for you to become financially independent – specifically, the dollar amount needed.
In the FIRE community, it is typically known as your FI number, which is your financial independence number. The number is the amount of your net worth and the amount saved up, so you can start living off of your investment income.
This number will vary from person to person.
It is based on your personal situation. The variables that impact your FI number include:
Your income today
How much you plan to spend today
The amount you save today
How much you plan to spend in the future
Your age now
Age you want to quit working (aka retire)
Typically, most couples with kids can start looking at FI number in the $1.5 million range. The first reaction is that the number is either WAY LOWER than they thought it would be. Yes, because we have been taught by “financial professionals” that you need so much more in assets in your retirement accounts than you actually do.
The time is now to become a financially secure person and learn your fi number today. Here’s a great resource to help you.
19. Diversify Your Income
Just as with as above and knowing your FI number, financial independence becomes more likely to happen once you start diversifying your income.
A financially stable person earns all three types of income.
Most people rely on earned income only. If you only rely on earned income, then you reach a max threshold of what you are able to earn.
So a financially secure person has multiple buckets of income; they are diversified in investments, real estate, or side hustle. The key to long term success is finding ways to make passive income.
20. Budget isn’t AS Important
A trait of a financially secure person is they know how much they are able to spend, how much they need to save, and the amount of money that they come in every single month.
They do not need to budget down to the very last line item. (thank goodness for many of you reading this!)
A financially secure person has an overall sense that income exceeds their spending and saving goals.
That is financial security.
While a budget may help them stay focused and a more detailed budget may help them reach their longer term goals.
It does not mean that a budget is necessary. You can still have a loose budget and know that you are still making ends meet because they have a system set up and a system set in place.
Budgeting is not as important as it was previously.
21. Splurging is Okay
This is one of the best feelings as a financially secure person is knowing that it is okay to splurge. It is okay to spend extra money. It is okay to stop cutting corners at every single turn.
You remember back to the days when each month was a struggle to make ends meet. That is not the life that you live anymore; you live a completely different life. And now, it is okay to splurge.
And to be very honest, for most people, once they become financially secure, it is actually really, really hard for them to loosen that tight fist on their money and start spending it.
22. Same Page with Finances with Spouse or Significant Other
They share the same money vision and together they set smart financial goals. All of their decisions are made together.
Did you get that keyword??? Together. Meaning with the other person.
While they may not agree on every single line item of their budget or how they spend money individually, they still set aside money for each of them to spend as they please. Around here at Money Bliss, we call this money a slush fund.
Because at the end of the day, as a couple, they know they are still making progress in the right direction for the long term. So, these couples do not worry about the short term of how you spend your $100 each month if you are reaching your goals and that happens once financial security sets in.
23. Net Worth Grows Significantly Each Year
If your net worth does not grow significantly each year, then you got a problem.
A financially secure person knows their net worth and has systems in place to keep it growing significantly each and every year.
It’s not just one or two percentage points typically, you can expect a much higher rate of growth of 8-10%. Once your net worth increases, the bigger the bucket for the percentage of growth.
24. Credit Cards are Paid in Full
Financial security means you were able to pay your credit card bill in full each and every month without blinking. This is a mantra of a financially secure person.
They chose to use their credit cards wisely so they can get points, cash back, and travel benefits.
But, they are also cognizant that each and every month that credit card is paid off in full; this type of person will not carry a credit card balance for any reason. Period.
25. Prepared for Large Purchases
Nothing states financial security more than being able to go out and replace $5000- $10,000 worth of appliances or home repairs or something similar.
A financially secure person realizes that they have to be prepared for large purchases since they are going to happen.
It is only a matter of when a big purchase will happen.
This person is consistently setting money aside in a sinking fund for those large purposes. In our house, we like to call it the big murph fund.
We know that it may be a small remodel project, an appliance that needs to get fixed or looking at replacing a car. Many items can fall under this big murph fund umbrella. For us, we do not set aside money for each of those purposes in their own sinking funds because then we would not able to maximize our investments.
Instead, we estimate how much money is likely needed and set aside for large purchases that are likely to happen in the next one to two years.
Ways to Save $5000:
26. Your Health Matters
Financial stability means that you are able to spend money on your health and it is a priority for you and your household.
You start realizing the benefits of taking care of your body, eating properly, and managing your health in better ways.
The light bulb starts going off and says slaving at my work for 60 to 80 hours a week may not be worth it. While the income may be great, a financially stable person may feel like they are killing themselves inside for the benefit of others.
A financially secure person knows that their health matters more than money does.
You are more likely to spend money on organic produce because you know it is better for your body. You consistently review to see if you are spending your time in ways that benefit your overall health.
27. Bad Money Habits Are a Thing of the Past
We have all had them.
We have all made stupid money mistakes.
And the best part is a financially secure person has learned from their bad money habits and made changes so they never happen again.
All of the things that they used to do, they don’t do anymore. Bad habits are something that happened in the past. While they may regret it, which is absolutely okay and part of working through the process to make further progress.
Their past mistakes are not going to hold them back from their future self and build solid money habits.
28. Giving Money is Generous
When you are able to give 10% of your income and not be panicked about making ends meet, that is when you know that you have reached a higher level of financial security.
Giving money is generous.
It is something that helps society come together and as a community making the world a better place.
By you being able to give money will help somebody else become a better version of themselves. We have all had others that have helped us.
By giving money, you can pay it forward. It can be something as simple as paying for the people behind you. It could be something grand like having a building named after you because you made a massive donation.
The size of the giving does not matter. It is the fact that you decided and made the conscious decision to start giving your money.
29. People Ask You about Money Questions
When others start looking towards what you have accomplished in your financial journey, that is when you know you have created an environment of solid money management skills.
People will start coming to you asking questions on how they can improve their money situation. And that is fabulous!
That means that others view you as being financially secure and stable in your personal finances. You deserve a pat on the back and motivation to keep up the hard work.
30. Happy With Your Financial Path
Remember that saying, “If you are happy and you know it, clap your hands.” Well, as a financially secure person, it is when you wake up and look at your overall financial picture and say, “You know what, I’ve got this, I’m on the right path,” and you put a big grin on your face. And you pat yourself on the back.
As a financially stable person, you are proud of what you have overcome, the difficult challenges you faced, and now you are excited about where the next step is going to take you and your future.
It is not roses and happiness the entire way; there are ups and downs along your path that got you to a financially stable place.
But deep down you know that you are on a stable future with a solid path.
31. You Know You are In Control of Your Money
This type of person knows exactly where their money goes.
They are in control of their money; their money doesn’t control them.
They make the decisions on how, when, why, and where they spend money.
They are not told by outsiders how to manage their money. A financially stable person has control over their money and in the long run, it opens up the doors of opportunity.
This is a sign of financial independence.
How Much Money is Financially Stable?
How much money do you need to be financially stable?
This will depend on everybody’s personal situation.
If you are single and only providing for your one household, the amount of money that you need is much less than a family of six to eight people. In view of that fact, the more people that you’re responsible for, the more money that you need to become financially secure.
Let’s put some number on the question of how much money is financially stable.
3-6 months of expenses
Positive net worth
No debt (or a solid plan to get out of debt)
Able to give 5% of your income
Saving at least 20% of your income
$100k of F-you money (read JL Collins book for terminology)
Increasing saving percentage each year
At a bare minimum, you could estimate to need at least $25,000 for a single person or $100,000 for a family of four.
These assumptions include you continuing to live below your means and not regressing from the progress you made.
However, most people feel more financially secure when their net worth hits $250,000 or $500,000. Once you hit millionaire status, you are financially secure.
Are you Ready to Move from Not Financially Stable to Financial Stability?
You are in charge of your destiny.
You are able to go from one place to another, but you have to be willing to take the jump, take the risks, and seize opportunities.
So if you are not sure that you are ready to move on to financially stable, you need to be financially sound first. For now, save this post and come back once you are ready to move to the next step of becoming financially stable.
If you are ready to move to financial stability, then you need to start today and make all of these habits of somebody who is financially stable a part of your life.
There is no “Oh, I’m gonna wait till tomorrow.” Because then you are just going to keep putting it off. Tomorrow needs to become today.
The sooner that you can become financially stable, the better off that you will be.
Procrastination is just like having a plan, but not setting it into motion. You actually need to take action and start today. Enough planning, enough procrastination.
Start slow with easy habits. A good habit here and there. Keep building on those habits and you will slowly step-by-step learn how to become a financially stable person.
It does not take a huge monumental stream of income to achieve financial stability. All it takes is perseverance to make better yourself.
You can become the next millionaire with no money!
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Eligible Chase cardholders can get rewarded this summer for fueling their vehicles, seeking fun away from home, and finding a silver screen to shield them from the heat.
From July 1 to Sept. 30, 2024, Chase Freedom Flex℠ cardholders can earn 5% cash back on up to $1,500 in combined quarterly spending at the following merchants (activation required; 1% back on all other non-bonus-category spending):
Gas stations and electric vehicle charging.
Select live entertainment.
Movie theaters.
Gas stations, EV charging and select live entertainment are repeat categories from the Q3 2023 bonus calendar. Movie theaters are an addition this year, and were previously excluded from the select live entertainment category.
Chase Freedom® and Chase Freedom Flex℠ bonus rewards categories for 2024
Q1 (Jan. 1-March 31)
Grocery stores.
Fitness clubs and gym memberships.
Self-care and spa services.
Q2 (April 1-June 30)
Select hotel bookings.*
Restaurants.
Amazon.com.
Q3 (July 1-Sept. 30)
Gas stations and EV charging.
Select live entertainment.
Movie theaters.
Q4 (Oct. 1-Dec. 31)
TBD (In 2023: PayPal; wholesale clubs; select charities).
*Includes bookings made directly with the hotel and prepaid bookings through Chase’s travel portal.
The select live entertainment category includes most things you’d buy tickets for, including sporting events, zoos and aquariums, concerts, theaters, museums, amusement parks, circuses and carnivals. You’ll also earn bonus rewards at eligible ticketing agencies. However, exclusions include bowling alleys, horse racing tracks, casinos, dance halls, clubs, and any purchases through a hotel or concierge or as part of a travel package.
Merchants excluded from the gas stations category include truck stops, boat marinas, oil and propane distributors, and home heating companies. You also won’t earn bonus rewards on home-charging equipment for your EV.
🤓Nerdy Tip
Although the original Chase Freedom® card is no longer accepting applications, existing cardholders still earn 5% cash back based on the same bonus calendar and terms for the Chase Freedom Flex℠.
Beyond the rotating quarterly categories, Chase Freedom Flex cardholders can earn an uncapped 5% cash back on travel booked through Chase; 3% back on drugstores and dining; and 1% back on all other purchases. New cardholders also qualify for the following signup bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
🤓Nerdy Tip
The Chase Freedom Flex℠ is a World Elite Mastercard and offers additional benefits, including cell phone protection and perks such as offers with Lyft, Fandango and Shoprunner, among others.
Information related to the Chase Freedom® has been collected by NerdWallet and has not been reviewed or provided by the issuer of this card.
Some credit cards offer a promotional interest rate, as low as 0% APR, for purchases and/or balance transfers. Often, these promotional interest rates are offered for a limited period of time when you apply for a new card, though some issuers offer promotional rates for existing cardholders as well.
If you have a large purchase coming up, or an existing credit card balance that you want to transfer over, these cards can save you a significant amount of interest. You’ll just want to make sure to pay off the full balance by the end of the promotional period, as your interest rate will likely jump significantly when your promotional APR expires.
What Are Credit Card Promotional Interest Rates?
A credit card promotional interest rate is an interest rate that is offered for a limited amount of time, as a promotion. During the promotional period, you’ll be charged a lower interest rate than your typical interest rate.
It’s common for credit cards to offer these introductory promotional interest rates for new members when you open a credit card account. However, it’s also possible for issuers to offer promotional interest rates to existing cardholders.
Recommended: How to Avoid Interest On a Credit Card
How Credit Card Promotional Interest Rates Work
One common scenario for how credit card promotional interest rates work is that an issuer might offer a 0% promotional interest rate on purchases and/or balance transfers for a certain period of time. When you’re using a credit card during the promotional interest period, you won’t pay any interest.
It’s important to note that there are two major types of promotional interest rates, and they vary slightly. With a 0% interest promotion, you won’t pay any interest during the promotional period. If there’s any balance remaining at the end of the promotional period, you’ll begin paying interest at that time. With a deferred interest promotional rate, on the other hand, you’ll pay interest on any outstanding balance back to the date of the initial purchase.
Benefits of Credit Card Promotional Rates
As you may have guessed, there are certainly upsides to taking advantage of credit card promotional interest rates. Here’s a look at the major benefits.
Low Interest Rate During the Promotional Period
One benefit of credit card promotional interest rates is the ability to take advantage of a low or even 0% interest rate during the promotional period. Having access to these promotional rates can give you added flexibility as you plan your financial future.
Ability to Make Balance Transfers
One possibility to maximize a credit card promotional rate is if you have existing consumer debt like a credit card balance. By using a balance transfer promotional interest rate, you can transfer your existing balance and save on interest. This can help lower the amount of time it takes to pay off your debt.
Can Pay For a Large Purchase Over Time
If your credit card has a 0% promotional interest rate on purchases, you can take advantage of that to pay for a large purchase over time. That way, you can spread out the cost of a large purchase over several months rather than needing to pay it off within one billing period.
Just make sure to pay your purchase off completely before the end of the promotional period to avoid paying any interest.
Drawbacks of Credit Card Promotional Rates
There are downsides to these offers to consider as well. Specifically, here are the drawbacks of credit card promotional interest rates.
Deferred Interest
You need to be careful if your credit card promotional rate is a deferred interest rate, rather than a 0% interest rate. Because of how credit cards work with a deferred interest rate promotion, you’ll pay interest on any outstanding balance at the end of the promotional period — back to the date of the initial purchase. This amount will get added to your existing balance, driving it higher.
Penalty Interest Rates
You still have to make the minimum monthly payment on your credit card during the promotional period. If you don’t make your regularly scheduled payment, the issuer may cancel your promotional interest rate. They may even impose an additional credit card penalty interest rate that’s higher than the standard interest rate on your card.
May Encourage Poor Spending Habits
Establishing good saving habits and living within your means is an important financial concept to live by. While it may not always be possible, it’s generally considered a good idea to save up your money before making a purchase. While a 0% interest promotional rate means you won’t pay any interest, it can contribute to a mindset of buying things you don’t truly need.
Recommended: Tips for Using a Credit Card Responsibly
How Long Do Credit Card Promotional Interest Rates Last?
By law, credit card promotional interest rates must last at least six months, but it is common for them to last longer. You may see introductory interest rates lasting 12 to 21 months, or even longer.
Regardless of how long your promotional period lasts, make sure you have a plan to pay your balance off in full by the end of it. Credit card purchase interest charges will kick in once your promotional period is over.
Zero Interest vs Deferred Interest Promotions
Both 0% interest rates and deferred interest rates are different kinds of promotional rates where you don’t pay any interest during the promotional period. However, they come with some key differences:
Zero Interest
Deferred Interest
Often marketed with terms like “0% intro APR for 21 months””
Often marketed as “No interest if paid in full in 6 months”
No interest charged during the promotional period
No interest charged during the promotional period
Interest charged on any outstanding balance starting at the end of the promotional period
At the end of the promotional period, interest is charged on any outstanding balance, back-dated to the date of the initial purchase
What to Consider When Getting a Card With a Zero-Interest or Deferred Interest Promotion
One of the top credit card rules is to make sure you pay off your credit card balance in full, each and every month. But if you’re carrying a balance with a promotional credit card rate, you’ll want to make sure you understand if it’s a 0% rate or a deferred interest promotion.
With a 0% promotional rate, you’ll start paying interest on any balance at the end of the promo period. But with a deferred interest promotional rate, you’ll pay interest on any balance, back-dated to the date of the initial purchase.
In either case, the best option is to make sure that you have a plan in place to pay off the balance by the end of the promotional period.
Paying off Balances With Promotional Rates
You’ll want to have a gameplan for how to pay off your balance before the end of the promotional period. That’s because at the end of the promotional period, your credit card interest rate will increase significantly.
If you still are carrying a balance, you will have to start paying interest on the balance. And if you were under a deferred interest promotional rate, that interest will be calculated back from the initial date of purchase.
Watch Out for High Post-Promotional APRs
Using a 0% promotional interest rate can seem like an attractive option, but it can lull you into a false sense of financial security. You should always be aware that the 0% interest rate won’t last forever. Your interest rate will go up at the end of the promotional period, and if you’re still carrying a credit card balance, you’ll start paying interest on the balance.
Exploring Other Credit Card Options
There are some other credit card options besides getting a card with a promotional interest rate. For instance, you might look for a credit card that offers cash back or other credit card rewards with each purchase.
Before focusing on credit card rewards or cash back, however, you’ll want to make sure that you first focus on paying off your balance. Otherwise, the interest that you pay each month will more than offset any rewards you earn.
If you’re carrying a balance, you can also attempt to get a good credit card APR by making on-time payments and asking your issuer to lower your interest rate. By simply securing a good APR, you won’t have to worry about it expiring and then spiking like you would with a promotional APR.
The Takeaway
Some credit cards offer promotional interest rates to new and/or existing cardholders. These promotional interest rates could be a 0% interest rate for a specific period of time, or a lower interest rate to encourage balance transfers.
While taking advantage of promotional interest rates can be a savvy financial move if you have existing consumer debt or need to make a large purchase, you’ll want to make sure you have a plan to pay off your balance in full before the promotional period ends. That way, you avoid having to pay any interest.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
Will my interest rate spike after a promotional deal ends?
Yes, generally credit card promotional interest rates last only for a specific number of months. The way credit cards work is to charge interest on balances that are not paid off. So, while your credit card may charge 0% or a lower promotional rate for a period of time, the interest rate will rise once the promotional period is over and will apply to any outstanding balance on the card.
How does promo APR work?
Promotional APR offers are generally put forward by credit card companies as a way to entice new applicants. Cards may offer a 0% introductory APR for a certain number of months on purchases and/or balance transfers. Once the promotional period is over, your interest rate will rise to its normal level.
Should you close a credit card with a high interest rate?
Having a credit card with a high interest rate will not negatively impact your credit or your finances if you’re not carrying a balance. So, simply having a high interest rate is not a reason, in and of itself, to close a credit card. But if you have a balance on a credit card with a high interest rate, you might want to consider doing a balance transfer to a card with a promotional 0% interest rate while you work to pay it off.
Is my credit card’s promotional rate too good to be true?
Promotional interest rates are a legitimate marketing strategy used by many credit card companies. While you shouldn’t treat them as a scam, you also need to make sure that you are aware of the terms of the promotional rate and how long the rate is good for. Make a plan to completely pay off your balance by the end of the promotional period before your interest rate increases.
Photo credit: iStock/Jakkapan Sookjaroen
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Your credit card’s grace period is the length of time that starts at the end of your billing cycle and ends when your payment is due. During this period, you may not have to pay interest on your balance — as long as you pay it off in full by your payment due date.
While a lot of credit cards have a grace period, not all of them do. Here’s a look at how grace periods on credit cards work and how you can take full advantage of them.
What Is the Grace Period on a Credit Card?
Credit cards allow you to borrow money over the course of a one-month billing cycle, during which you may not need to pay interest. The end of your credit card billing cycle is also called your statement date. That’s when your monthly credit card statement is sent to you in the mail or becomes available online. Credit card payments are due on the payment due date, about three weeks later. The time in between these dates is what’s known as the grace period.
During this time, you won’t be charged any interest on the purchases that you made during the billing cycle. However, because of how credit card payments work, you must pay off your credit card balance in full by your payment due date in order to avoid interest payments. At the very least, you must make your minimum payment, and you’ll then owe interest on whatever balance you carry into the next month.
Recommended: What is a Charge Card
How Credit Card Billing Cycles and Grace Periods Work
Grace periods on credit cards are different from the grace period for other loan products. For example, the grace period for a mortgage lasts about 15 days. If your payment is due on the first of the month, you’d have until mid-month to make your payment before it’s considered late and you’re charged potential late fees.
This is not how credit card grace periods work. The grace period for revolving credit — which is what a credit card is — comes before the payment due date. As such, credit card grace periods don’t protect you from late fees. Rather, they give you a period of time in which you can avoid interest payments.
If you miss the date when credit card payments are due, your payment is considered late. Late payments may trigger penalties, and they can have a negative effect on your credit score if they’re reported to the credit reporting bureaus.
Recommended: When Are Credit Card Payments Due
Limits on Credit Card Grace Periods
Credit card companies are not required to offer their customers a grace period. However, many of them choose to do so.
Federal law requires credit card companies to send you a bill within 21 days of the payment due date, meaning you’ll get at least three weeks’ notice of how much you owe for your previous billing cycle. However, the amount of time you’ll have for your grace period will vary by lender.
Credit card grace periods typically only apply to purchases. That means if you’ve used your credit card for a cash advance, for example, you’ll have to start paying interest on the date of the cash advance transaction.
Recommended: Tips for Using a Credit Card Responsibly
How Long Is the Typical Grace Period for a Credit Card?
Typically, grace periods last at least 21 days and up to 25 days.
You can find out how long your grace period is by checking your cardholder agreement. The length of your grace period should be listed alongside fees and your annual percentage rate (APR). You can also call your credit card company and ask them directly.
Recommended: How to Avoid Interest On a Credit Card
What Types of Transactions Are Eligible for Credit Card Grace Periods?
As mentioned above, generally only purchase transactions are eligible for the credit card grace period. Cash advances — which allow you to borrow a certain amount of money against your line of credit — typically are not eligible. They will start accruing interest the day you make the transaction.
Similarly, if you transfer a balance from one credit card to another, you’ll start to accrue interest on that balance immediately. The only exception is if you have a balance transfer credit card with a 0% introductory rate for a period of time. If you pay off the balance during that period, you won’t owe interest. However, interest will accrue on whatever remains of your balance at the end of that period.
Taking Maximum Advantage of Your Credit Card’s Grace Period
If you pay off your credit card bill in full each month, you’ll avoid paying interest. Even carrying a small balance will disrupt your grace periods. If you do, you’ll owe interest on the remaining amount, and all of the new purchases that you make in the next billing cycle will accrue interest immediately as well.
To take full advantage of your credit card’s grace period, plan your purchases accordingly to ensure you’re able to pay your bills in full and on time. For example, if you’re going to make a large purchase, you may want to do so close to the first day of your billing cycle. That way, you’ll have the full cycle (about four weeks), plus your grace period (about three weeks), to pay off your purchase without owing any interest.
Can You Lose Your Credit Card’s Grace Period?
It is possible to lose your credit card grace period if you don’t make on-time payments in full each month by the payment due date. If you lose your grace period, you’ll be charged interest on the remaining portion of your balance. In the new billing cycle, you’ll also owe interest on any new purchases on the day the transaction takes place. This can lead to you falling into a debt cycle, which isn’t easy to get out of (here’s what happens to credit card debt when you die).
Luckily, issuers usually restore grace periods once you’ve paid your outstanding balance and are back to making full on-time payments for a month or two.
Recommended: Can You Buy Crypto With a Credit Card
The Takeaway
Your credit card grace period is an important tool that can save you money on interest if you pay off your balance in full each month. If you don’t pay your balance in full each month, you could lose this privilege temporarily. As such, you’d end up owing interest on your previous remaining balance and any new purchases.
In addition to a grace period, the SoFi credit card offers other features to help you manage your finances. This includes 2% unlimited cash back rewards when redeemed to save, invest, or pay down eligible SoFi debt. Cardholders earn 1% cash back rewards when redeemed for a statement credit.1 Plus, you can secure a lower APR by making 12 on-time monthly payments of at least the minimum amount due.
The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1
Take advantage of this offer by applying for a SoFi credit card today.
FAQ
What is the grace period for credit card payments after the due date?
Credit card grace periods occur before the payment due date. Payments made after that date are considered late. After the due date, cardholders will owe interest on their balance. Further, they may lose their grace period until they can pay their balance off in full for one or two months.
What happens if you are one day late on a credit card payment?
Being one day late on a credit card payment can still trigger late fees, interest, and potentially the loss of your grace period. Late payments may also be reported to the credit reporting bureaus, which can have a negative impact on your credit score.
What is the typical grace period for a credit card?
Federal law requires that credit card companies provide your bill at least 21 days before your next payment due date. The length of the grace period can vary depending on the credit card issuer, though they typically last 21 to 25 days.
Photo credit: iStock/Moyo Studio
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
The SoFi Credit Card is issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
1See Rewards Details at SoFi.com/card/rewards.
1Members earn 2 rewards points for every dollar spent on purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points into your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, or SoFi Personal, Private Student, or Student Loan Refinance, your rewards points will redeem at a rate of 1 cent per every point. For more details please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.
Amid health and safety concerns during the coronavirus pandemic, the popularity of contactless credit cards soared. This method of payment allows you to use your credit card for a purchase by simply tapping or holding it on the card reader, as opposed to inserting or swiping it.
While you may or may not already be familiar with how to use contactless credit cards, you may be wondering, how do contactless cards work? Here’s a look at the tech that enables contactless credit card payments, as well as the pros and cons and overall safety of using contactless credit cards.
What Is a Contactless Credit Card?
Physically, a contactless credit card looks like a regular credit card, with the bank name and the account number on the front of the card and the ubiquitous magnetic stripe on the back of the card. However, contactless credit cards allow cardholders to “tap and pay” instead of inserting or swiping their card in a merchant payment machine.
This enables a consumer to make a purchase at a retail location without ever having to physically touch a payment device, which is why contactless payments increased during the pandemic.
What Does Contactless Payment Mean?
The term contactless payment more broadly refers to a form of payment that involves no touch. You can make a contactless payment using a credit card as well as a debit card, gift card, mobile wallet, or wearable device.
Regardless of the form, contactless payments rely on the same technology to make a payment without needing to swipe, enter a debit or credit card PIN, or sign for a transaction.
How to Know If Your Credit Card Is Contactless
Major credit card providers like MasterCard and Visa offer contactless cards. You can determine if your credit card is contactless-capable by looking for a contactless card symbol on the back of your card. This symbol looks like a WiFi symbol flipped on its side, with four curved lines that increase in length from left to right.
Even if your card has this symbol on it, you’ll also want to check that the merchant has contactless readers. You can figure this out by looking for that same symbol on the card reader or asking the merchant directly.
How Contactless Credit Cards Work
Like other credit cards, contactless credit cards have small chips embedded in them. But instead of requiring you to insert the card, this chip emits electromagnetic waves that transfer your payment information when you place the card close to a payment terminal that accepts contactless payments.
You don’t actually even need to tap your contactless credit card to pay — all you have to do is place your card within a few inches of the payment terminal. This will initiate payment.
You might then have to wait a few seconds while the transaction processes. The terminal will usually give a signal when the transaction is complete, such as by beeping or flashing a green light.
Technology That Enables Contactless Credit Card Payments
Instead of inserting a credit or debit card into a merchant payment terminal, contactless credit cards rely on radio frequency identification technology (RFID) and near-field communication to complete a retail transaction.
The “no touch” concept is driven by a contactless card’s short-range electromagnetic waves, which hold the cardholder’s personal data, including their credit card account number. This information is then transmitted to the merchant’s payment device. Once the device grabs the airborne card information, the transaction can be completed and the purchase confirmed.
Pros and Cons of Contactless Credit Cards
Like most consumer finance tools, contactless credit cards have their upsides and downsides. Here’s a snapshot of the pros and cons to note:
Pros
Cons
Convenient to use
Not always available overseas
Secure
Low transaction limits
Increasingly offered
Not always reliable
Better for merchants
Pros
These are the main upsides of contactless credit cards:
• Convenient to use: Contactless credit cards are extremely convenient to use once you get the hang of how credit cards work when they have this feature. All a user has to do is wave their contactless credit card in front of the card reader, and the deal is done in a matter of seconds. Plus, you can avoid touching any surfaces in the process.
• Secure: With data thieves regularly on the prowl, “tap and pay” and “wave and pay” technologies are highly protective of a consumer’s personal data. All of the data is stored on a password-protected, fully-encrypted computer chip embedded inside the card, making it difficult for a financial fraudster to steal a user’s personal information.
• Increasingly offered: The availability of contactless payments has increased in recent years, and many brand-name companies now offer the option. Companies may even offer discounts and loyalty point details that are immediately added to a consumer’s account at the point of sale.
• Better for merchants: Companies that offer contactless credit/debit card payments also benefit from “no touch” card technology. Aside from superior operational capability and faster transactions, merchants get a better customer experience and formidable fraud protection from contactless payment technology, with no extra cost. That’s because merchants pay the same transaction processing fee with contactless payments as they do with regular credit card transactions.
Recommended: Tips for Using a Credit Card Responsibly
Cons
Of course, there are downsides to contactless credit cards as well:
• Not always available overseas: Contactless payments may not work abroad, given the recent expansion of a new card payment technology. Additionally, consumers may be charged foreign transaction fees when they do use contactless payments overseas, depending on the specific country’s credit card payment laws.
• Low transaction limits: Contactless card users may find they can’t cover large transactions, like a laptop computer or king-size bed. That’s because merchants may issue those limits until they’re convinced contactless payments (like any new technology) are completely safe, secure and free of any fraud threats. In the meantime, contactless card-using consumers can always use the same credit card to make a big purchase by using “chip and sign” or “chip and swipe” card technologies.
• Not always reliable: Contactless credit card transactions aren’t always reliable, as sometimes the payment won’t go through even though a reader indicates that it accepts contactless payments. This could cause someone to have to resort to swiping their card instead to complete the transaction.
Recommended: What is a Charge Card
Guide to Using a Contactless Credit Card
When using a contactless credit card, the transaction is enabled and completed in three key steps: look, tap, and go.
1. Look. The consumer checks for a contactless symbol on a merchant’s payment device (this will look like a WiFi signal tipped on its side).
2. Tap. After being prompted by the payment device, the consumer will wave the credit card an inch or so over the payment device, or actually touch (tap) the credit card on the payment terminal. This is why the process is sometimes referred to as credit card tap to pay.
3. Go. Once the wave or tap is executed, the payment device picks up the transaction, confirms the credit card payment, and completes the transaction.
Be mindful that if you carry multiple contactless credit cards, you may want to keep those cards away from a terminal that accepts contactless payments. This will help ensure the correct credit card is being charged. Instead of holding your wallet or purse over the payment terminal, take out the specific card you’d like to use instead.
Recommended: When Are Credit Card Payments Due
Are Contactless Credit Cards Safe?
Contactless payment cards basically offer the same anti-fraud protections as any card that relies on a credit card chip.
This is because the chip in contactless credit cards creates a one-time code for each merchant transaction. Once the payment is confirmed and the transaction is approved, the code disappears for good. That makes it virtually impossible for a financial fraudster to steal a consumer’s personal data, as they can’t crack the complicated algorithmic codes financial institutions use with chip-based payment cards.
Additionally, a contactless card is equipped with electromagnetic (RFID) shielding, which helps keep card information from being “skimmed” by data thieves. In turn, this removes another data security threat from the credit card transaction experience.
Recommended: Can You Buy Crypto With a Credit Card
The Takeaway
Contactless credit cards are emerging as an effective payment technology that’s gathering steam among consumers and retailers alike. Thanks to the tech that enables contactless credit card payment, these credit cards allow you to simply wave or tap the credit card within range of a payment terminal that accepts contactless payments. You can figure out if a payment terminal — and your credit card — offer contactless payment as an option by looking for the contactless payment symbol.
If this is a feature that interests you, it might be worth looking out for when picking a credit card that works for you.
The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1
Take advantage of this offer by applying for a SoFi credit card today.
FAQ
Are there extra charges for using contactless credit cards?
No, there are no extra charges for using contactless credit cards. This is true for the consumer who’s tapping their card as well as for the merchant accepting contactless payments.
What are the risks with contactless credit cards?
While contactless credit cards generally offer enhanced security, there is the risk of a thief skimming cards in your wallet by using a smartphone to read it. However, the thief must be within very close range to do so. Perhaps the easiest way for a thief to get ahold of your information is by stealing your physical credit card, which is a risk with any type of credit card.
Where can I use my contactless credit card?
You can use your credit card at any retailer that has a terminal accepting contactless payments. You can determine if a card reader will take your contactless credit card by looking for the contactless payment symbol.
What happens if I lose my contactless credit card and someone else uses it?
If your card is stolen or lost, contact your credit card issuer immediately. Check your recent credit card transactions for any fraudulent activity, and make sure to report that information to your credit card issuer.
Photo credit: iStock/milan2099
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The SoFi Credit Card is issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
1See Rewards Details at SoFi.com/card/rewards.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
1Members earn 2 rewards points for every dollar spent on purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points into your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, or SoFi Personal, Private Student, or Student Loan Refinance, your rewards points will redeem at a rate of 1 cent per every point. For more details please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.
Inside: Learn how to save 5000 in a year by following this step-by-step guide. You’ll be able to save money for your goals – retirement, vacation, or emergencies.
I started my $5,000 Savings Challenge on February 16th and haven’t missed a day since. I’ve already saved over $3,500 so far – can you beat that?
A savings challenge is just like any other contest or competition that is designed to get people motivated into saving more than what they normally would.
It works by setting short-term goals for yourself (such as opening one additional account per month), rewarding your progress with some kind of prize at the end (in this case, a $5,000 gift card), and tracking your progress with some kind of tool.
The average person spends $1,000 per year on fast food. If you can save that money by eating out less, you could put it towards your retirement fund or any other savings goal.
There is always a reason not to save money, but once you prove to yourself you can save money, that is a gamechanger.
In this post, find out how this $5000 saving challenge works as well as tips for setting goals that will work best for you.
Why Save $5000 in a Year
One of the most common questions I get is “How do you save so much money in a year?”. The number one reason people don’t save is that they think it’s impossible. The truth is, anything in life worth doing takes time and energy to achieve.
Typically when people think about saving money they think of it as a one-time event that would only save them $50-$100, which is not worth the time or effort.
But when you think about saving money as making a small change to your daily life that will lead to long-term savings, it’s a lot less intimidating.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Reasons to Save $5000 a Year:
I saved 5000 dollars in a year when I started to realize I was spending my money in ways that were frivolous and did not align with my long-term financial goals.
You can do the $5k saving challenge too!
You can fund any of the following by saving 5 grand a year:
You cannot afford to start saving now.
If you want to save more, then start looking at your saving percentage!
How to Save 5000 in a Year
This is how to save $5,000 in a year.
Saving $5,000 in a year is no small feat.
But if you’re feeling excited about what that could do for your future with just this one investment of time and money, you’re not alone.
No matter what your financial goals are, saving $5k in a year will help get you there faster and with less stress.
That’s why we are challenging you to the $5,000 savings challenge.
We want to help you save more and build your financial future.
1. Save a Flat Amount
Each month or week you will need to save the same amount.
This is the easiest way to save $5,000 in one year is by saving the same amount (e.g., $416.67) each month for 12 months.
If you are saving on a weekly basis, you will be saving $96.15 a week.
If you are saving on a bi-weekly basis, you will be saving $192.31 a week.
Monthly Amount Saved = $417
Semi-Monthly Amount Saved = $209
Weekly Amount Saved = $97
Bi-Weekly Amount Saved = $193
Knowing these amounts helps you to deduct these amounts straight from your paycheck into your saving account for the $5k savings challenge.
This is a great challenge for those who make 5000 a month.
2. Start Small and Save More
With this method, you will start saving a smaller amount of money and grow to save more each month.
By starting to save smaller amounts of money, you can find ways to become more frugal as you continue with the challenge. Also, this works well if you plan to make more money throughout the year.
You start by saving $120 and add an additional $50 to the previous month’s total.
Month 1 = $150
Month 2 = $200
Month 3 = $250
Month 4 = $300
Month 5 = $350
Month 6 = $400
Month 7 = $450
Month 8 = $500
Month 9 = $550
Month 10 = $600
Month 11 = $650
Month 12 = $700
At the end of one year, you will save $5,100!
The downfall to this challenge is things get more difficult. Thus, making you more likely to give up.
3. Start Big and Save Less
This will give you a buffer if something happens in your life.
You save more money upfront and then taper how much you save each month or week.
This method is preferable especially if you start with a no spend challenge.
You start by saving $600 and deduct $33 from the previous month’s total.
Month 1 = $600
Month 2 = $567
Month 3 = $534
Month 4 = $501
Month 5 = $468
Month 6 = $435
Month 7 = $402
Month 8 = $369
Month 9 = $336
Month 10 = $303
Month 11 = $270
Month 12 = $237
At the end of one year, you will save $5,022!
The upside to this challenge is you get the majority of saving completed in the first part of the year. Thus, you get a jump start on seeing progress and sticking to habits.
Savings Challenge Tracker
A savings challenge tracker is a tool that helps people with saving money.
It offers an interface to track various savings goals, such as retirement, education, and emergency funds.
These goals are set by the individual and can be changed at any time. The tool also offers a goal calculator, which allows users to predict how much they will need to save in order to meet a certain goal.
This is why you need a savings challenge tracker.
10 Simple Ways to Save $5,000
There are many ways to save $5,000 in a year. With the right strategies and preparation, it is possible to reach your goal even if you’re not financially well-off.
Here are tips and practical ways to cut expenses to help you save $5000 money.
1. Track your Spending
The first step to saving $5,000 is to track your spending.
When you do this, it will help you see where you could be wasting money and identify areas that need improvement.
Also, we highly recommend recording daily expenses so that there isn’t any confusion at the end of the month. Also, this helps identify areas where you are wasting money and adjust your spending accordingly.
2. Reduce your Cell Phone Bill
Switching to a discounted carrier can save hundreds of dollars. If you switch from one of the leading carriers to a discount carrier, you could potentially save $840 per year.
3. Save Money on Food
The most obvious way to save money is by using your credit or debit card to analyze your spending. Add up your food spending for the past three months.
If you are not careful, you could spend a lot of money on food without realizing it.
There are several ways to reduce the amount of food you spend including being more conscious of what you spend at restaurants.
To save money on food, I recommend shopping at discount grocery stores like Aldi or sales at your local stores. By shopping less often, you will not be tempted to spend more money.
Meal planning is another great way to save money by buying only what you need and planning your meals ahead of time so that you don’t overbuy.
4. Use Cash Back Apps
One of my favorite ways to save money is to take advantage of cash back apps.
There are many different websites and apps that allow you to earn cash back on purchases.
There are 3-personal favorites:
Rakuten
Ebates
Ibotta
5. Credit Card Rewards or Signup Bonuses
There are many ways to save a lot of money in a year. Credit card offers can earn you anywhere from $100 to $500 as a one-time bonus. and if you use them responsibly, this can add up over the year. This is also known as credit card hacking.
Cash Back rewards are a great way to save money. Credit card offers can range from 2% – 5% of cash back, but it will take some work on your end to make sure you categories match up to your highest spending areas.
6. Get Cheaper Insurance
If you have a lot of insurance, it’s possible that you could save money by moving to a different company or making some adjustments to your policies.
It’s easy to get quotes from multiple insurance companies.
There are lists of the best home insurers and best auto insurers when you’re ready to start your shopping.
7. Find Free or Cheap Things to Do
Fun things with friends and family are a great use of your time, but there are ways to cut back on entertainment expenses without sacrificing fun.
Things like going to the movies, sporting events, concerts, as well as trips to the bar or meals out with friends can really add up fast. So, here is a list of 101+ things to do with no money.
8. Set Limits on Fun Spending
Give yourself a hard limit on how much you can spend on entertainment
You must set limits on how much you spend each day, weekly, or monthly.
This may include how often you shop. Shopping is fun, but it’s also costly and time-consuming if you do it often.
9. Watch Out for Small Purchases
When each purchase feels so small, it’s hard to believe how quickly it all adds up.
those $10 or $20 purchases over the course of the year will add up quickly to the tune of $100-4000 a year!
Wait 24 hours to make sure you still want the item.
10. Find Side Hustles to Make Money
There are so many ways to make extra money that will speed up your savings.
Here are some ideas that will have you saving $5k in a year:
Flea Market Flipping: Buying and re-selling items for higher prices
Freelance Writer: There are many different types of services that can be offered as a freelancer.
Pet sitting and dog walking: Simple side hustle for extra cash
Freelancer: Graphic design, web design, web development, photography, and social media marketing specialists are always needed.
Drive for DoorDash: a flexible way to make money
Take online surveys
Learn to Invest in the Stock Market: This one should not scare you away. By investing, you are able to grow your money with passive income. This is a skill we all need.
Related Reading: 21+ Genius Ways on How to Make Money Fast
More Ways to Save Money:
Dump your cell phone plan
Cancel those gym memberships
Stop subscribing to Netflix or Hulu
Cut back on groceries by buying in bulk at Costco
Shop on Amazon for clothing and other goods (just beware of daily deliveries)
Stop paying for cable
Rent instead of buying an expensive TV
Get rid of your car
Switch to a low-cost airline
Stop buying expensive coffee
Once you’ve done all of these things, you will be impressed with how you save your money. You’ll have $5000 in just one year!
How to Save $5000 in a Year Chart:
The saving money chart shows the average amount of money that can be saved in a year by making small changes to your spending habits.
It is important to note that this figure is an average and not a goal.
It is important to set realistic financial goals and to track your progress in order to really achieve the savings you want.
Here are two how-to save $5000 in a year printable chart – one for monthly savings and another for weekly savings.
What can you do with $5,000 in Savings?
The $5,000 Savings Challenge can help you start saving more money than you thought was possible! You have to be ready to dedicate the resources and determination to make it happen.
Where are you at in your savings journey?
This $5000 saving challenge may or may not be right for you! And that is okay!
We have plenty of money saving challenges to help you succeed here on Money Bliss.
This challenge is for anyone who wants to save money and reach their savings goals.
It’s designed to help you start saving today with an easy plan.
Money Saving Challenge:
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
You might be looking to revamp and refresh your home for the summer. Fortunately, today’s trends are more affordable than ever. From boucle pillows to accent walls, you can spruce up your space without spending a fortune. Here are some of our favorite trends and what you can expect to spend on them.
Check Out: 8 Best New Buys at Nordstrom Rack That Are Worth Every Penny
Read Next: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Living Wall Art ($319 and up)
Summer 2024 design trends are all about natural living and that means opening blinds and curtains to let in lots of light — and maybe even adding a living wall (or moss wall art) to a living area or bathroom.
Prices for living walls vary widely. The sky’s the limit to how much you can spend for a professionally installed living wall, but this Moss Wall Art from Wayfair won’t break the bank at just $319.
Learn More: 6 Valuable Everyday Items You Should Never Throw Away
Indoor Trees and Plants ($20 to $70)
If a moss wall feels like too much of an investment, or if you don’t have empty wall space to hang it, consider adding plants and indoor trees to your living room and bedroom. This indoor cat palm from Home Depot stands roughly three to four feet tall and thrives in a moderate sunlight environment, making it the perfect indoor plant. It has air-purifying capabilities to remove toxins from the air. Find plants like this one ranging from $20 to $70, depending on the size and species.
Smart Lighting ($30 to $87)
Smart technology adds style and convenience to the modern home, creating the perfect blend of natural living and high-tech design. Sophisticated smart home systems, professionally installed, can cost tens of thousands of dollars. But, you can upgrade various components over time on a budget and use a consumer smart home hub, like Hubspace, for control.
The Denning 13-inch Brushed Nickel Smart Voice Controlled LED Light from Home Depot’s Home Decorators Collection works with Google Home, Amazon Alexa, or The Home Depot Hubspace App. If you’re upgrading the lighting in your home, there’s no reason not to choose smart components — particularly since prices compare to regular lighting.
Large Mirrors ($56 to $300+)
Mirrors reflect light to make a space feel bigger and brighter. Oversized mirrors can be propped against a wall or hung on a door, The Glass Guru suggested. Make sure you choose one with a frame that matches your room to create a cohesive look.
This Metal Arch Mirror from Wayfair is just $76, but you can spend a lot more (or less) depending on the size and style mirror you need.
Large, Bold Tiles in Unexpected Places ($500 to $1000 and up)
Tiles make their way out of the bathroom and into dining rooms, living rooms, and even on walls. The bigger and bolder the design, the better. Floor & Décor has a wide variety to fit any budget. You can outfit an accent wall with these Pianetto Monaco Noir polished porcelain tiles for under $500.
Accent Walls ($40 or less)
If $500 is to steep for your budget, a simple coat of paint can also create a focal point in any room. Accent walls remain popular as a way to infuse personality and visual interest in your space. A gallon of Behr paint sells for around $40 at Home Depot, and is more than enough to cover one wall in a 12′ by 12′ room. For more savings, check out the bargain bins, where stores sell paint “mis-tints,” or paint that customers rejected, at a discount.
Boucle Pillows ($23 to $50+)
USA Today’s Reviewed called boucle “one of 2024’s biggest design trends.” This fabric is replacing velvet as the hot upholstery, adding texture and visual interest to any room. If you aren’t ready to upgrade your sofa, you can embrace boucle in a minor way with fun throw pillows. Pottery Barn sells boucle pillow covers that you can add to existing throw pillows for under $25, or choose a pillow stuffed with down features (or a down alternative) for less than $50. Colors range from bright cardinal red to neutral ivory or camel to match any design aesthetic.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 7 Home Decor Trends That You Can Actually Afford
As you plan those summer barbecues, pool days or dinners, Discover’s bonus categories for the third quarter of 2024 can be a big help.
From July 1 through Sept. 30, 2024, holders of eligible cards like the Discover it® Cash Back and Discover it® Student Cash Back can earn 5% back at grocery stores and Walmart on up to $1,500 in combined spending for the quarter. (Activation is required; other purchases will earn 1% back.)
Here’s what you need to know to make the most of these spending categories.
Discover bonus rewards categories for 2024
Q1 (Jan. 1–March 31)
Restaurants.
Drugstores.
Q2 (April 1–June 30)
Gas stations/EV charging stations.
Home improvement stores.
Public transit.
Q3 (July 1–Sept. 30)
Grocery stores.
Q4 (Oct. 1–Dec. 31)
TBD (In 2023: Amazon, Target).
A closer look at Discover’s Q3 bonus categories
For the third quarter of 2024, here’s what will qualify:
Grocery stores
Eligible grocery store purchases that earn the bonus rate include those made at supermarkets, meat lockers, bakeries, small grocery stores and grocery delivery services. Purchases that won’t qualify for this rate include those made at Target, convenience stores, wholesale clubs and discount stores.
Walmart
During this quarter, you can also earn the bonus rate on purchases made at Walmart, whether in store or online, at Walmart discount stores, Walmart Supercenter stores, Walmart Neighborhood Market stores, curbside pickup, Walmart+ and Walmart gas stations. Purchases using Walmart Pay with your eligible Discover card will also qualify for the bonus rewards.
Purchases made through an individual merchant or a standalone store within physical Walmart locations might not be eligible, however. Other purchases that won’t qualify include Sam’s Club purchases, purchases made through affiliates of Walmart.com, and purchases made outside the U.S. Terms apply.
Maximizing Discover’s Q3 bonus categories for 2024
You can make the most of the bonus categories above by checking off the items on this list:
Activate the bonus categories by logging into your Discover account.
Use your Discover card whenever you shop at the grocery store or at Walmart in-store or online.
Keep track of the amount spent to know whether you’ve reached the $1,500 spending limit. An automated tracker available when you log into your Discover account can help.
Considering the Discover it® Cash Back?
The Discover it® Cash Back card is ideal if you can keep track of the quarterly changing bonus categories, remember to activate them and pay off your credit card bill in full every month. Otherwise, the card’s interest rate will outweigh the value of its rewards.
The card’s features include:
Annual fee:$0.
APR:0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 18.24%-28.24% Variable APR.
Sign-up bonus: INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.