How to Work Cash Back Credit Cards to Your Advantage

By Leni Parrish on May 7, 2009

If you are not yet using a credit card that gives back actual cash rewards, you might be missing out. There are millions cashof consumers who have made the switch from using traditional credit cards to the new-improved cards offering consumer rewards. Cash back credit cards are one of the most popular rewards programs because – let’s face it – everyone can use cash.

Cash back rewards cards really can get you benefits simply by using your card as you normally do. Here are some other tips to consider when using a cash-back rewards card to maximize your earnings:

Verify the Terms
Just because it says it’s a rewards card, does not mean that the reward will be cash. Make sure you understand the program well before signing up. While other rewards programs can be equally beneficial to your lifestyle, those other rewards simply are not cash.

You’ve Got To Use It To Earn It
If you want to get the maximum rewards benefits, you have to charge everything. The more you use your credit card, the more points you accumulate which can be converted to cash. Make sure you have the cash to back up the purchases though because if you default on your credit card payments, you will likely forfeit the points/cash rewards you have earned. Pay off your balance each and every month to continue earning rewards.

Keep Tabs on Your Points
As a card holder, you can likely access your account online to track your bonus point earnings. The only fun part of gaining the points is being able to redeem them for the cash. Make certain you know the rules when it comes to point redemption and expiration so you don’t miss out on the cash back. Follow the directions for redeeming your points and enjoy.

Use Your Cash Back Wisely
While it can feel fantastic to get that cash in hand, think wisely about how you manage your money. When you get that cash reward, consider putting it towards the outstanding balance on your account each month. Not only does it save you money, but it helps you to keep up with your pay off each month, thereby reducing your overall debt.

Having a credit card that offers cash back just for using your card can be a great benefit for your convenience and your finances. Remember to read the terms and make sure the card you apply for is the right one for you. Compare different cash back credit cards online before choosing the right one for you.

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