Cashback rewards cards give you an amazing opportunity to earn “free money” on purchases that you were already going to make in the first place, which is why people love these kinds of credit cards so much.
At the same time, though, plenty of folks aren’t quite sure about how to make the most of everything that these incredible cards have to offer.
Truth be told, the credit card companies themselves make understanding how to maximize cash back rewards cards a little bit confusing on purpose. While they are more than happy to give you as many rewards as you can possibly earn they really don’t want people to be earning too many rewards – especially not with their help!
Thankfully though, there are some ways to kind of legally game the system to earn even more cashback with these kinds of credit card offers.
We include some killer tips and tricks below to help you do exactly that!
Choose the Right Card
This should be pretty obvious, but you’d be stunned at the number of people that just sort of pick any old cashback reward card assuming that they are the same across the board.
Nothing could be further from the truth.
It’s always a good idea to look for a cashback rewards card that pays at least 1.5% back on every single purchase. This is slightly higher than the industry average of 1%, but guarantees that you’re getting a higher payout with every purchase you put on your card. When combined with other special offers you can really take this to the next level.
Focus on Food
The temptation is always going to be there to grab cashback rewards cards that promise special bonuses on certain purchases, especially if you feel like you have a couple of big purchases in those areas coming up.
But to be completely honest the best cashback rewards you’re ever going to get our rewards on food – groceries and dining – because ALL of us have to eat every single day and ALL of us are going to be making food purchases on a regular and routine basis.
Rewards on these kinds of purchases (food-related purchases) may not look gigantic upfront but they are going to become a big part of your bonus points in aggregate. It’s not at all unreasonable to spend close to 20% of your annual salary on food – and some people spend quite a bit more than that every year!
That’s a big chunk of cashback coming your way.
Pay Monthly Expenses with Rewards Cards
Another cool tip is to pay off monthly expenses with your rewards cards because you know these expenses are fixed, you know these expenses are coming down the line, and they are expenses that you would have had to pay for anyways – so why not get some cashback in return along the way?
Setting up an automatic bill pay kind of arrangement with your cashback cards can really help you to take things to the next level.
This might take 15 or 20 minutes one afternoon to get situated and settled, but all of a sudden you have automatic and on-time bill pay established with cashback rewards coming in every single time your card is hit with those charges.
It doesn’t get much better than that. Talk about autopilot cash back rewards!
Leverage One Time Reward Offers Whenever Possible
A lot of the social cash back and popular cashback cards on the market today offer different “one-time” reward offers and promotions throughout the year, some of them that you might be interested in and others that you might not be all that crazy about at first.
If you’re looking to maximize your cashback rewards, however, it’s a good idea to jump on top of all those offers whenever possible. These are usually one-off kinds of deals that can flood your account with more cashback than you would have been able to earn normally.
Stick to Just Two Rewards Cards
Lastly, though the temptation is there to spread your purchases across a couple of different “specialty” rewards cards it’s a much better idea to keep your card holdings to just two different cards.
One card should be used for everyday purchases (like the ones we highlighted above) and the other should be a specialty card that you put big purchases on exclusively to earn the maximum amount of points in whatever area it specializes in.
Use these tips and tricks to bump up the value of your cashback cards and you’ll be good to go!