Here's how to get cash back rewards from credit cards
Some credit card reward programs offer opportunities to earn cash back rewards. When redeemed, these cash back rewards could help offset some of your common expenses or provide you with perks such as discounts on travel or gift card redemption. Cash back rewards are usually earned when you make credit card purchases in select categories, like dining, travel, retail and gas.
Here's some general information about cash back rewards and some things you should take into account when you're thinking of earning and redeeming them.
What are cash back rewards and how do they work?
Cash back rewards are a type of reward points based on a percentage of purchases with your credit card in select categories, such as dining, department stores, grocery and travel. Typically, credit cards with this feature award cash back at a value of 1 cent. Cash back rewards can be redeemed for credit card statement credit, for purchases through participating online retailers at checkout, for gift cards or discounts on services or travel.
How do I earn cash back?
You can earn cash back rewards by using your credit card to make purchases, with many card issuers offering different rates of return depending on the category of your purchase (like dining and travel). Credit card issuers and banks sometimes offer opportunities for earning cash back rewards in cycles or promotions. While most cash back credit cards offer at least 1% cash back on all purchases, there may be a greater earning potential in purchases of specific categories such as travel, department stores, grocery and dining. For instance, you might get an alert to activate your cash back redemption cycle for 5% of cash on groceries or department store purchases, which were previously only 3%. In other cases, you might have opportunities to earn 1-5% cash on all categories.
How can I redeem my cash back rewards?
Cash back rewards redemption is flexible and can be redeemed in the following ways:
You can use your cash back rewards to help pay down your credit card balance. When logging into your online reward program portal, there may be an option to redeem your cash back rewards as a statement credit to your next monthly bill.
Online or travel purchases
Your cash back rewards can be used to help pay select online retail purchases or on travel booking websites.
By check or deposit
Cash back rewards can also be redeemed through a mailed check or direct deposit into your preferred bank account.
Through your rewards program portal, you may also be able to redeem cash back rewards for gift cards to select department stores, restaurants, video streaming services and more.
Are cash back rewards right for me?
Earning cash back rewards may require some consistency in making purchases with your credit card. Your rewards can really add up if you use your card for common purchases at retailers, for travel and dining or other common payments, like filling your car up with gas.