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.

In: 0

Answer 1

What is in your best interest and what’s in the credit card companies best interest aren’t always aligned. It’s better for you if you spend less money. It’s better for the credit card company if you spend more.