Who ever thought that the more you spend the more you get back? Banks today offer their loyal clients a chance to get back a percentage of what they spend through the use of a cash back credit card. Typically people use their debit cards or just the old school cash to pay for everyday necessities like groceries, gas, and coffee. This old-fashioned way of spending money doesn’t offer any rewards and you don’t get anything back from spending. This is why cash back cards are becoming more popular as more and more people are benefiting from its rewards system.
Interested in learning more about this smart spending reward system? Here’s what you should know:
Banks Offer Different Cash Back Rates
A bank can offer their clients a chance to earn rewards by using their credit cards when they make purchases, but the rates they offer are different. Other banks offer only 1% of cash back per purchase while others offer more. There is no standard rate so check with your bank to learn more about their rates and how much you stand to gain in reward points.
Claiming Of Rewards
Again, the time when you can claim your rewards is different depending on your bank. Usually, the reward points you earn are tabulated annually by the bank, but some offer a cash back rebate per month. Generally, the points you accumulate are qualified for an exchange once you meet the minimum number of points your bank requires.
Ask your bank for more details about their cash back credit card terms and conditions when it comes to claiming points to avoid any confusion and errors.
Ways To Redeem Your Rewards Or Cash Back
Your bank will have a system in place that allows you to claim your rewards. It may differ depending on the terms of your credit card, but here are some examples on how you can use and redeem your cashback:
* Bank Deposits allow you to cash out the points you’ve earned through your checking or savings account. Sometimes no minimum amount earned is required, but banks do have a set of rules and regulations about this. Ask before making any assumptions.
* Statement Credit is when the points you’ve earned is used on your credit card balance.
* Gift Cards are usually the most popular form of reward offered by banks. By earning a specific amount of points, they offer clients a gift card from a participating merchant.
* Donations are offered by some credit card providers as a choice for giving away some or all of your rewards. Check if they are affiliated with a charity you prefer and give the rewards you’ve earned to a good cause.
Responsible Spending
Before signing on to get any cash back credit cards make sure you understand that these are should be used responsibly. Although you earn points by spending this doesn’t mean you should always go on a spending spree. Consider this type of smart spending if you always pay your credit card bills on time and if you plan to use the card for things you already spend on. Use the card wisely to avoid damaging your credit scores.
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