Nothing is better than the feeling of spending money with your credit cards and getting cash back at the same time. Getting rewards for spending money is like having your cake and eating it too. However, knowing the best way to get cash back rewards using your credit cards requires a little insight into how these systems work.
Here are the top 5 tips and tricks for generating cash back using your credit card.
Shop Around (for Cards)
Most credit cards only offer the best cash back rewards for new card holders or ones that are threatening to cancel. Take advantage of this situation by being aggressive with your credit card companies. Cancel those cards that have poor reward programs and sign up for new cards that have better ones. You will be surprised at how many new offers for cash back rewards you get from old credit card companies when you quit and let them know why.
Avoid Annual Fees or Minimum Purchases
Almost all cards that have cash back reward programs will also have an annual fee and/or a minimum annual purchase limit. However, many of these cards will waive these requirements for the first year. Therefore, find the cards that have great cash back programs where these requirements are waived for the first year, or more, and then simply find a new card when that waiver period expires.
Wait for Promotional Offers
Patience pays when it comes to getting cash back from your credit card. Credit card companies will offer regular promotional incentives on top of the standard credit card terms, so wait until you find an offer that really pays out big in cash back rewards. You can get double the amount of cash back if you wait until a card is in a promotional phase before signing up.
Read Your Card’s Fine Print for Cash Back Rewards
Many cards will offer additional cash back bonuses for buying certain kinds of things with the card. For example, a number of cards will give you extra cash back for buying clothes or gas using that card, so be sure that you are making the most of all the benefits that your card has to offer.
Work Around for High Minimum Purchases
Some of the absolute best cards for cash back reward programs come with a high level of initial purchases or big bonuses for spending a lot of money with your card right away. If you want to get these extra bonuses but cannot afford the minimum purchase level, just use your credit card to buy a high value shopping card that you will use throughout the year. This way you can meet the minimum without having to buy a bunch of stuff right away that you do not need or cannot afford.