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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There’s a difference between treating your credit card like a bank loan vs treating it like a debit card. If you live within your means, have multiple credit cards, buy everything with those cards, and pay the balances in full each month, you’ll get rewards and a higher score. The utilization only starts counting against you when you start carrying a balance from one month to the next.
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