What’s the point of credit card cashback rewards if I’m supposed to minimize my credit card usage?

Question

I’ve been looking at articles about credit cards and a lot of them say to keep credit card utilization under 30%, ideally under 10%. If that’s true, does that mean cashback should rarely be above $1-2 per month? Is cashback a strange way to lower your credit score in exchange for small amounts of money? I couldn’t find anything explaining the relationship between these two opposite mechanisms of credit cards. Thanks.

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Answer 1

You’re confused. Utilization == using. Utilization is what % of your total available credit is being used at whatever point you’re doing the credit check. That’s it.