Cashback is a word that most people love to hear. It’s like getting free money. And with many credit cards, you’re eligible for cashback and cash rewards. But how do you get the most out of these cards? Here are ten secrets to getting the most out of cashback rewards.
Credit cards with cashback rewards often favor one category over another. For example, some will stress travel rewards; others put weight on dining or gas. Choose a card that rewards you for your lifestyle and consult your credit card company to understand the terms of these rewards.
Different types of cashback rewards are defined by credit card issuers. For instance, certain credit card issuers may offer higher cashback rates for specific categories like groceries or entertainment. Always review the terms and conditions provided by your credit card issuers to maximize your benefits.
Some people like a flat-rate cashback credit card. They are simple, and you don’t have to keep track of bonus categories. However, understanding your spending categories can help you maximize rewards. If you have a flat-rate credit card, pair it with a tiered rewards card. You can use the flat rate for everything the tiered rate card doesn’t cover and fill in the gap. You’ll end up with more rewards.
Only charge what you can afford to pay off right away. You should be paying off your card statement each month as part of good personal finance practices. If you don’t, the interest you’ll be charged will be more than your earned points. In other words, you’ll cancel out your points and probably lose money.
Before signing up for a cashback credit card, ensure that it offers unlimited bonus points or cashback. Some credit card issuers will only let you earn cashback up to a specific threshold.
Many credit cards offer sign-up bonuses. These bonuses can help you earn a massive amount of cashback rewards and earn credit card rewards. Ensure you check the credit card’s specific terms and conditions to see if a sign-up bonus is available and how you qualify for it.
If you’re going to pay off your card each month, go ahead and charge everything you buy. This strategy creates an opportunity to turn every purchase you make into a cashback reward. Using multiple credit cards can further optimize your returns, as different cards offer varying rewards based on spending categories like groceries and gas. But the key to doing this is to pay it off each month.
Some credit cards have rotating categories that offer higher cashback on different areas of spending each quarter. For example, one quarter could be gas, and another could be travel. Additionally, cards like the Citi® Double Cash Card offer a flat cashback rate with no annual fee, making them a strategic choice for consistent rewards. Use your credit card carrier’s app or set calendar reminders to tell you when these specials are happening. That way, you’ll consistently earn the most cash back.
Most credit cards have shopping portals. These can be goldmines for earning cash back. When you purchase through their portals, you often receive higher cash back than you would if you went straight to the retailer. Additionally, choosing cards that do not impose foreign transaction fees can enhance the overall value of rewards earned while making international purchases.
We’ve been talking about credit cards, but cashback apps like Rakuten and Ibotta will also give you a percentage of your spending on qualifying purchases. You can stack that onto the cash rewards and cashback you’re earning with your credit card.
Reward stacking is a clever strategy to maximize your earnings by combining multiple rewards programs. Imagine using a rewards credit card, signing up for retailer loyalty programs, and shopping through cashback portals—all at the same time. This way, you can earn more cashback, points, or miles on every purchase.
To start reward stacking, choose a rewards credit card that offers cashback or points. Then, sign up for retailer loyalty programs and use cashback portals like Rakuten, Ebates, or TopCashback. This strategy works for various purchases, whether you’re shopping online, in-store, or booking travel.
By stacking rewards, you can significantly boost your earnings and make the most out of every dollar you spend.
Spending strategically is key to maximizing your credit card rewards. It’s all about using the right card for the right purchase and taking advantage of bonus rewards and incentives.
First, understand your spending habits and choose a credit card that aligns with your needs. Use your cashback credit card for everyday purchases and a rewards credit card for travel or dining. Don’t forget to take advantage of bonus rewards on specific categories and use cashback portals for online shopping.
By spending strategically, you can earn more cashback, points, or miles and get the most out of your credit card rewards.
You want to use your cashback rewards strategically. But it starts with how you choose your card. In the realm of personal finance, it's crucial to read the fine print and find a card that meets your lifestyle.
