Knowledge Abundance Cardholders should strive to maximize benefits and rewards throughout the year. If you're using a cash back credit card, it's important to understand how to get the most out of your cash back rewards. Continue reading Level up your cashback knowledge and learn how to optimize your reward strategy.
- 1 1. Your consumption Evaluate your habits and find the card that's right for you
- 2 2. Cards with great sign-up benefits
- 3 3. Find cards that offer bonus cashback in the biggest categories
- 4 4. Diversify your spending strategy
- 5 5. Register for Quarterly Bonus Category
- 6 6. Maximize special offers and shopping portals Conjugation
- 7 7. Use cashback wisely
- 8 Bottom line
1. Your consumption Evaluate your habits and find the card that's right for you
Analyze your cash flow before changing your credit card spending strategy or considering applying for a new credit card. is important. how much money do you spend per month? per year? In which category do you spend the most money? What do you ultimately want or need from a rewards credit card?
Start by knowing how much and what you're spending each month using a budgeting app or pen and paper. Whether you're feeding your soul with home-cooked meals or earning travel miles on your car or your favorite airline, understand where your money really goes so you can choose the card that matches the money you're already spending. .
By understanding how much you spend, you can predict yearly reward yields (the first year is often higher if the cashback card has a bonus offer) and value for the annual fee. helps predict whether there will be If you don't actually spend enough money on your credit card each year to offset the card's annual fee, the card probably isn't the best option for you.
Once you've reviewed your usage, Credit Cards can help you identify the type of card that best fits your lifestyle and current spending.
General Spending Categories
The best type of card for daily spending is usually a fixed cashback card that earns you the same rate of return no matter what you buy am. 2% cash back makes a lot of sense, but a card with a slightly lower flat rate may offer additional benefits that are better suited for spending.
If you spend a lot of money on eating out or takeout, there are many cashback cards that offer generous rewards for food and entertainment purchases. If your biggest expense is groceries to cook at home, a card with a specific reward category for spending at the supermarket might be best for you. If you're traveling by, a card focused on buying gas makes more sense.
2. Cards with great sign-up benefits
If you're looking to buy a new cash back card, make sure you get a great cash back card welcome offer with minimum spending requirements that are easy to meet. Please do your homework.
There are many cash back cards with great welcome bonuses.
- Chase Freedom Flex℠: $200 cash bonus 3 months after account opening when card is used within $500
- Bank of America® Customized Cash Rewards credit card: Account opening $200 online cash reward bonus when you spend $1,000 in the first 90 days from
- Ink Business Unlimited® Credit Card: $900 within the first 3 months of account opening Bonus cashback on $6,000 purchase
3. Find cards that offer bonus cashback in the biggest categories
Once you've decided where you actually spend your money each month, you'll want to apply for a cashback card that pays the best dividends for your own financial habits.For example, if most of your monthly money is spent on groceries. , you must match your spending with the appropriate cashback card. For example, American Express' Blue Cash Preferred® Card offers cardholders 6% cash back on US supermarket spending (up to $6,000 purchases per calendar year, 1% thereafter) ).
4. Diversify your spending strategy
There are some steps you can take to get the most out of each credit card.
First, don't play your favorites with a cashback card. It is wise not to concentrate all your cash back on one credit card. It's great to get 6% cash back on US supermarket purchases (up to $6,000 annually, then 1% thereafter) with American Express's Blue Cash Preferred Card, but 1% cash back You don't have to be satisfied with just one. most other purchases. Keep the second card in your wallet. For example, a 2% flat rate cash back card can be used for spending that does not fall into the high income bonus category.
We do research on every card and identify the best of each. Add little labels to your cards that indicate what the card is for, give each card a nickname that's useful in your digital wallet, or put a handwritten legend in your wallet so you're ready to use the right card on the right.
5. Register for Quarterly Bonus Category
If your cash back card has a rotating bonus category, keep an eye on your card issuer's cash back calendar and activate the bonus category on a quarterly basis. This makes you eligible for bonus cashback percentages. Otherwise, you only earn the base rate (usually 1% of all spend).
For example, Discover it® Cashback earns 1% cashback on all non-category purchases, but on an activated rotation every quarter (1% thereafter) We also offer 5% cashback on up to $1,500 spent in the bonus category. Make sure you are enrolled in these offers and make the most of them as your spending allows.
6. Maximize special offers and shopping portals Conjugation
If you want to earn more cash back, combine your favorite cash back credit card with our convenient shopping portal. Click on your favorite store's shopping portal and pay with your favorite cash back card to get more rewards with every online purchase.
Ibotta, Rakuten (formerly Ebates) and Dosh will return a percentage of your spend on qualifying purchases in addition to the cash back earned on your credit card.
Before you shop, look for card-linked offers from your credit card issuer, whether in person or online. For example, Amex and Chase offers offer cardholders of each issuer the opportunity to earn additional rewards on purchases at select retailers. These offers typically appear in your online account, but have a limited redemption period and must be individually opted-in.
7. Use cashback wisely
Using cashback rewards wisely is just as important as maximizing your chances of earning cashback. Many people choose to use cash back rewards as statement credits to offset their monthly spending, but receiving rebates for amounts already spent is not the only option. Save up for big purchases you might not be able to afford otherwise, or pay cash rewards upfront by investing your monthly earnings and paying future long-term dividends with cashback.
Take some time to spend strategically and you'll be earning cashback rewards before you know it. Maximize your cash rewards by using one of the best cash back credit cards on the market for as many of your daily purchases as possible.
In the meantime, you should also avoid carrying around balances. So you don't have to pay interest on the purchase. His APR for the average credit card is now over 19%, so there's no point piling up rewards if you're also in long-term debt.