6 Ways to Earn More Cash Back Rewards
When it comes to
saving money, you have to be shrewd. In addition to clipping coupons,
refinancing your home loan, and holding off on buying a new car, why not make
your purchases work for you by scoring cash back whenever you shop? Most credit
cards have cash back programs in place, but it’s easy to miss out on
rewards if you’re not paying attention. Here are six ways to get more cash
back.
1. Use the Right Credit Card
Make sure you’re using
the right credit card to earn cash back for all of your purchases. The Chase Freedom Card and the
Discover it Card feature rotating categories with 5% cash back (and no annual
fee). Educate yourself on the details and plan your purchases accordingly.
The American
Express Blue Cash Preferred Card comes with 6% cash back on groceries
(capped at $6,000 per year), and 3% cash back on gasoline. There is a $75
annual fee, so do the math to make sure the rewards are worth the expense.
2. Sign Up for Cash Back Websites
If you’ve never heard
of Ebates or FatWallet, check them out. Both have cash back programs that
provide a rebate whenever you use their links for making online purchases. If
you shop a lot online, the cash back can really add up.
3. Download Smartphone Apps
Download the Wallaby
app to determine which of your credit cards is the best to use on any given
purchase. This ensures you’re always getting the best cash back reward,
simplifying the reward-management system if you’re juggling multiple cards.
You can also earn
money by using other apps. For instance, download the GymPact app, set up a
workout schedule, and earn up to 75 cents every time you exercise. If you shop
a lot, try the Shopkick app. Every time you enter a participating store or make
a purchase, you receive “kicks” which can be redeemed for gift cards.
4. Pay Your Bills With Credit Cards
Many monthly service
providers offer customers the option to automatically pay monthly bills with a
credit card. By putting $5,000 worth of monthly bills on a credit card over the
course of a year, you could earn at least $50, assuming your card offers a 1%
or greater cash back reward. Just make sure you’re paying off your balances
each month – if not, the added interest payments could eclipse any cash back
bonus.
5. Apply for New Cards
If you have a vacation
coming up, sign up for the Chase Sapphire Preferred Card. It offers $500
worth of travel rewards after you spend just $3,000 on the card in the first
three months. Similarly, the Citi Thank You Premier Card offers $200
worth of gift cards after you make $2,000 worth of purchases in the first three
months.
Just don’t sign up for
too many new credit cards in a short period of time – that could hurt your
credit score – and do pay attention to your cards’ annual fees. For instance,
the Chase Sapphire Preferred Card has a $95 annual fee after the first year, while
the Citi Thank You Premier Card has a $125 annual fee after the first year.
Only sign up for cards with rewards programs aligned with your spending habits –
you want to be in a position to earn more rewards than the cost of the annual
fee.
6. Pay for Everything With Credit
The more you spend on
your credit cards, the more cash back you can earn. But once again, this only
works if you’re paying off your balance each month. As long as you’re living
within your means, by paying with credit, you’re racking up those cash back
rewards.
If you have the option
to apply your cash back rewards in different ways, such as gift cards, travel
rewards, or statement credits, always opt to use them as statement credits. You
usually get a better return on your rewards, and if you’re paying for
everything with your credit cards, your cash back essentially helps pay for
your current purchases.
Sign up for a secured
card to help rebuild your credit by clicking on one of our links on the
right. A great website to shop for
credit cards is: www.FreeDebitCardStore.com.
