One of the perks of owning a credit card is that you can get some really nice cashback rewards, as long as you are aware of all the card’s features and use it properly. Sounds good, right?
Below you will find some useful tips on how to do this, but also a few important details on how these cards work.
Generally speaking, they are a way of saving money as you spend money. They come with an annual fee, which must be paid, no matter if you use the card or not, so this is why it’s very important to make sure you benefit from its advantages.
Each time you spend a certain amount of money using your credit card, you earn back a certain amount of money. To make it simple, if you spend $100, for example, you can get 5% back, which is $5. This amount is credit directly to your account, by the way.
Nevertheless, there are some general tips – often ignored by some people – which can actually help you maximize the amounts you get back on your cashback cards.
Always read the fine print of the cashback
There are several terms and conditions these cards come with, so it’s very important to go through the fine print before accepting the offer. You may end up with a card which you won’t find useful at all since it implies getting cash back only if you spend at specific stores, which you regularly don’t visit.
Be aware of your spending patterns
It is very important to know your spending habits in order to earn even more money back. If you spend more on food or groceries, look for an offer which gives back on these categories.
Also, track your monthly spend, as some cards actually limit the amount of cash you can get back in one month, while others don’t.
Keep an eye on promotional offers
Finally, always keep a lookout for promotional deals, especially if you’re planning to sign up for your first card. It is not advisable to switch cards when you hear about a great deal, but you never know what you might be missing.