5 Tips to Get the Most From Your Cash Back Credit Card
Tuesday, May 7, 2019, 6:00 AM | Leave Comment
Cash back credit cards are one of the most popular bank products today. With this type of card, you get to earn back a percentage of the amount you spend on your purchases.
Because of this, there will be at least one part of your bill that you can look forward to seeing every month.
As such, applying for a cash back credit card is a good decision if you want to start spending wisely and have access to additional sources of funds.
You can also get more from this product (and hence, enjoy using it more frequently) by following these tips:
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Do sufficient comparison shopping
Different banks and providers offer various types of cash back credit cards, and they are not all the same. So if you are applying for your first cash back card, look into the different products and know all the features and benefits they come with.
The most important feature to look for in a card is that it should pay back at least 1.5 percent on every purchase. If you do enough research, you may even find a 10% cash back credit card which means you will be earning more for every purchase you make.
Once you have noted the products with high cash back percentage rates, look into their other features and benefits, and select the one with an offer that appeals to you the most, and suits your lifestyle and income.
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Consider getting multiple cash back credit cards
If you come across two products that offer high cash back percentage rates, consider applying for both. In case you already have a cash back card, consider getting another one as well.
This is because you will be able to earn more money or rewards back if you have two or more cards. For instance, if you plan to use your card for groceries, get a specialty one for this purpose. If you always eat at restaurants, get a card that offers great cash back rewards for dining out.
As long as you choose the right cards and keep track of your spending, you will enjoy a lot of conveniences and maximize your rewards.
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Use your card for big purchases
The best way to earn huge cash back points or rewards is to use your card to buy or pay for expensive purchases.
If your kids are studying, use your card to pay for their tuition, books, and school supplies. By doing so, you will earn more cash back. You may even get a discount from the school.
You will also get more rewards if you use your card for buying electronics, home appliances and paying for repairs, car parts and services. Keep in mind that the larger your purchase is, the more rewards you will get.
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Monitor your card’s rotating bonus categories
If you have a category bonus cash back credit card, you will enjoy different types of rewards every three months. Make sure you use or take advantage of these rewards during the given timeframe to avoid wasting them.
In addition, don’t forget to register for these bonus categories every three months. If you don’t activate these bonus categories, you won’t be able to earn rewards and use them.
Lastly, when choosing the category themes, always pick the ones that that will allow you to earn the most cash back for the types of purchases you usually make.
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Pay off your balance every month
Although you have the option of paying only a portion of your credit card purchases each month, doing so isn’t a smart move if you have a cash back card. This is because when your card has an outstanding balance, it will incur interest charges that will most likely exceed the value of any rewards you receive.
As such, it is important that you also learn to use your card wisely. If you can’t afford to pay for something in cash now, don’t use your credit card to purchase it. If you do, you will have a hard a hard time paying for the total amount when your bill comes.
If you want to apply for a credit card now, consider getting a cash back card. And make sure you maximize the rewards you get from this card by following the tips above. By doing so, you will get more every time you use it, and avoid a lot of inconveniences.
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