Tips for Earning Cash Back From Your Credit Card

When it comes to earning rewards for using a credit card, what can be better and simpler than getting cash back? Compared to a travel-rewards credit card, a cash-back credit card lets you decide how you want to use your rewards instead of possibly being stuck applying points in those travel company loyalty programs.

Most cash-back rewards credit cards give you cash back on all eligible purchases. Every day expenses like trips to the grocery store, online shopping, utility bills, and recurring payments for gym memberships and the like, add up and are a great way to earn cash back.

How can you responsibly use a cash-back credit card so that it makes sense for your lifestyle? Here are some best practices for using your cash-back credit card according to cardratings.com:

Avoid adding new debt: Commit to paying off your balance in full and on time each month to avoid expensive interest or late fees. Accumulating interest and late fees offsets the cash you’re earning from your credit card. Also, determine if there is a service fee charged by the merchant or third-party payment platform for using a credit card. You need to decide if the extra fees are worth using the credit card in the first place.

Don’t overspend: You should always keep a budget. Whenever your spending starts to exceed the money you have available for a month, you’re inviting potential complications into your life. Sticking to a budget can help you from being blinded by the desire to rack up cash back. Does making a purchase that puts you $500 over budget, to earn $10 in cash back, make sense?

Share your card wisely: An authorized user of your credit card can add to the cash back rewards. Make sure they are on the same spending plan and that they adhere to your budget. Keep track of their purchases.

Monitor your rewards: Does your cash back expire? Is there a maximum to the amount of cash back you can earn? Make sure. The RBFCU Platinum CashBack Rewards Mastercard® credit card never puts a cap on rewards and they never expire. You can cash them out and use them whenever you need, or just apply them as a statement credit.

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Membership eligibility is required. Credit cards are subject to credit approval. Rates and terms subject to change; other restrictions may apply. Contact the Consumer Lending Center for complete details.

Information in this article is general in nature and for your consideration, not as financial advice. Please contact your own financial advisors regarding your specific needs before taking any action based upon this information.