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Cash back is an incentive that many credit card companies offer to encourage the loyal and consistent use of their cards. For some consumers, the promise of getting cash back for specific types of purchases was a major selling point used in the selection of a particular credit card over other options available. Depending on the card you choose and the types of purchases you make, you could earn cash back in the range of one percent to five percent, or possibly even more, on those expenditures.
Cash Back Credit Cards
At one time, the leading reward credit cards offered were airline miles. These miles represented dollars you spent on travel and could be traded in for flight upgrades, flights, hotel rooms or room upgrades, or other travel-related expenses. As credit cards evolved, so did the rewards, with credit cards offering rewards that enabled you to purchase gift cards for select retailers.
Today, many credit card companies allow customers to earn cash back rewards on purchases they make at certain retailers. When appropriately maximized, this is cash back that can make a difference for your annual financial bottom line.
Tips for Maximizing Rewards
Many people who have cards that offer cash back for purchases are not taking full advantage of the cash back benefits available to them. There are a few ways you can maximize your rewards, so you get more cash back bang from your credit card bucks.
Each month, these bills can add up to several hundred if not thousands of dollars. Pay them with your credit card, then immediately pay your credit card bill, so you are not paying interest on these purchases.
There is not a single best cash back card that is best for everyone. Finding the best cash back credit card for you depends on your spending habits, the card’s specific rewards program and benefits, and the value of the cardholder benefits you can use. However, when you use all the above strategies together to maximize your cash back, you can get far more mileage in the form of cash back rewards from your efforts.