Have you ever applied for, and received, a cash-back credit card that promised great rewards? Were you satisfied with the card? Did you get as many cash-back rewards as you were promised? One of the challenges with choosing cash-back credit cards is that there are so many available and some options are better for people with different lifestyles. For example, some cards are better for travelers while others are better for daily expenses, like eating out and getting groceries.
Want to know one of the best-kept secrets of cash-back credit cards? By simply spending a bit of time researching and comparing your options, you can indeed increase a number of cash-back rewards that you receive each month. You will see that finding the right credit card will help you quickly obtain more rewards than you ever imagined.
How Spending Habits Should Influence Your Card Choice
One important aspect of cash-back credit cards is that different tiers of reward points are available for distinct categories. As such, it is important to review where you spend the most money each month and get a card that will maximize your potential earnings in those areas.
If you and your family tend to spend a lot of your disposable income on groceries, gasoline, and bills, then you will want to look for a credit card that offers extra cash-back rewards in those areas. Usually, you will find that extra points are offered in these categories, but you will still get some points (usually half) for all other purchases in other categories (i.e., travel). However, if you prefer to eat out a lot, then you might wish to look for a card that rewards you for spending your money at restaurants.
Look for Special Points Promotions and Sign-up Bonuses
As you consider credit card options, check out which credit cards offer sign up bonuses. Sometimes you might be required to spend a certain amount within 1-3 months of receiving the card. Other times you will automatically receive a sign-up bonus.
Additionally, some credit cards will offer certain points promotions throughout the year. For example, if you rent through a certain car company you might receive 6 times the amount of points you would have received in other categories. Try to take advantage of special points promotions and/or partner deals that offer you additional points.
If you get certain benefits for the several months or year after you sign up for the card, try to maximize your spending in that area. For example, you might be offered 5% cash back on groceries for the first three months. You might consider purchasing gift cards, stocking up on non-perishable items, or simply making sure that you use that card every time you go grocery shopping.
Make Sure You Do Not Carry a Balance
The quickest way to lose when it comes to cash-back credit cards is to carry a balance. Unless you plan to pay off your balance in full each month, these cards are not a good option because of the high-interest rate that they charge. If you miss a payment deadline or have a balance, expect to be hit with high fees.