How to Use Cash-Back Credit Cards
It is sure nice to get some cashback every time you spend with your credit card. Basically, it is free money, and rewards like this come in many forms, such as statement credits, gift cards, or merchandise. Make the most of your cashback and redeem nice rewards by following the tips below.
The most straightforward way.
Receive it as a check.
If your cashback amount reaches a certain threshold, you can redeem it in the form of a check. Note that it takes time to process the check and arrive at you through the mail.
Cash can also be transferred from your card’s account to your bank account, following specific restrictions, like an account at the card issuer’s associated bank, or only an existing linked account you have previously used to pay your card.
Enjoy travel perks.
Save up on your travel expenses and use your cashback rewards to reserve plane seats, accommodation, or car transfers through the travel booking portal of your credit card online. Depending on your provider, you can get competitive rates or limited time bonus points to get more value for your money.
Use your accrued points or cash-back balance to pay for online purchases or apply for a statement credit after shopping at an online store. Big stores like Amazon and Apple are popular retailers that have this option.
Some people dislike this option because it is restrictive. However, certain cards offer bonuses of around $5 for redeeming cashback for gift cards, which increase your rewards. Weigh the bonus against the card’s usefulness and exchange your cashback if the reward is worth it.
If you wish, you can redeem your cashback for a new iPad, TV, or other merchandise. However, this is not the wisest way to enjoy your rewards. Often, the value of the merchandise offered is often lower than the value of your points. For example, if you have to use 80,000 points to buy a $400 router, your points are only worth 0.5 cents each. The best way to go about it is to use your cashback in something that you like that will also give you the best value for money.