What is a cashback credit card?
Credit card companies offer a lot of benefits to their customers to create loyalty. Cashback is one of such credit card benefits, that you should definitely try to use.
A cashback credit card offers cash rewards for spending. When you make a purchase via cashback card, you earn a cash bonus from that purchase, some percentage of it.
Cashback cards give you a cash rebate, its amount depends on the sum of money you already spend via that card. Every time you use a credit card while paying, you get some percentage of your spending back as a cashback. For instance, if your credit card gives 1% of cashback and you spend 100$ at Aliexpress, you’ll earn 1$ cashback at Aliexpress.
Cashback has more advantages than discounts and promo codes as you decide by yourself where to spend it. Sometimes you get a promo code to some shop that you‘ll never visit and it stays unused.
Usually, cashback credit card gives 1% to 2% from the purchase.
However, you should check cashback sites if you want to have a bigger cashback percentage.
Nevertheless, if you still want to use a cashback credit card and the biggest cashback rates, use these tips.
How to Get the Most Cashback with Credit Card?
Choose a card with a high cashback rate!
This is the first and the easiest tip. You should also check for sign up bonuses. Usually, the cashback rates are high during the first month of usage or another period. However, you should always check the terms and the conditions of each credit card, as they may differ.
Use different cashback cards for different shopping categories. Some cards pay good cash back on groceries and others on restaurants. Therefore, it is better to combine them depending on what are you buying.
It is also important to choose a card, that gives the highest cashback on categories, that you buy more frequently. For example, if you are not a car driver then there is no need for you in a card with high cashback rates on gas. Also, if you are a traveler, probably you should check the cards that partner with services like Agoda.
Use your cashback card as often as you can
Make sure that your cashback card is a default selection for online shops and marketplaces. If you set up your card by default at eBay or Aliexprees, you will automatically pay by it for everything you buy. You can also subscribe to the goods that you buy monthly, toilet paper, for example. All your everyday purchases will go through your cashback card. Oppositely use cashback cards while making huge purchases. Paying for expensive technics can give you a lot of cashback rewards if its monthly amount is not limited by a certain amount.
To sum up
Now you know what is a cashback on credit cards. If you want to maximize your cashback rewards, you should keep in mind the tips given in this article. With some time passing, you can turn these tips into money-saving habits.