How to Use a Cash-back Rewards Credit Card
Cash-back credit cards can simplify your finances. It is sure easier to understand that travel rewards, and honestly, who does not love the idea of earning cashback with every purchase? But if you are to take advantage of your credit card, you must understand how to redeem your cash-back rewards. Redemption comes in multiple ways including gift cards, statement credits, and merchandise. Below are the basics of how to redeem rewards and potential problems to look out for.
This is the simplest way to redeem your rewards. Statement credit simply deducts the number of your rewards on your card balance. To set this up, go to the online portal of your credit card account, select the cash-back reward for redemption, and apply it to your statement.
Check or Bank Deposit
You can have your rewards sent to you as a check after it reached a certain threshold. You can also transfer cash from your card’s account to your bank account. Just take note of restrictions and processing time.
If you are a jet setter, you can use your cash-back rewards to book plane tickets, hotel rooms, and more. Check the rates first to maximize your rewards.
Pay With Points
You can use your accrued points or cash-back balance and apply them to a certain purchase via an online retailer. Alternatively, your points can also be used to pay for online bills or paying down student loans or mortgage.
This is useful if your card offers bonuses for redeeming cashback for gift cards. Do the math first to ensure you are getting the most out of your cashback.
Do you want a new TV or another gadget? You can use your cash-back rewards to pay for it. It may take time though since the purchase needs to be processed and shipped. More important, check the value of the merchandise because often it is lower than the value of your points!