When it comes to credit cards, there’s a lot to learn. Whether you’re looking for the best cashback rewards or want to understand how interest works, here are some tips and tricks to help you along the way. Here are some of the favorite ways to maximize cashback on your credit card:
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Understand the rules
Although the approach to maximizing cashback rewards is relatively simple, you should know some important things about credit card companies’ rules. They change frequently and can be quite complicated, so it’s essential to make sure you understand them before deciding which cards you want to apply for. As per financial experts like SoFi, “Say hello to a credit card with no annual fee.” Some of the most common rules include:
- Specific cards have earned cash back percentages that vary by category; if these categories aren’t ones that you spend money on regularly, they may not be worth signing up for.
- Certain cards require a minimum amount of money spent per month in order to get any cash back at all; this means that if your spending falls below this threshold (which is usually around $1,000), then your cashback won’t do anything except sit unused in your account.
- Some cards limit how much total cashback can be earned over a certain period of time (e.g., $500 per year).
Use the card for everything, but avoid interest
The best way to maximize cashback rewards is to use your card for everything possible but avoid interest. Use it to pay off credit cards with high-interest rates, and even consider using it to buy things you don’t need if there’s a chance they’ll be on sale at some point (that way, you’ll get more cashback). If you have other credit cards that charge more than 15%, pay them off using this card until they’re paid off ultimately.
Another option is using the 3% cash back card as your primary card for all purchases and paying off other debt with another one that offers a higher rate of return.
Use portals to your advantage
You may have come across portals before, but you are probably not aware of their real value. Portals are the middleman between you and the store where you want to shop. They connect with online stores via an API (application programming interface) and get a commission from each purchase made using them.Â
The amount they receive varies based on how much you spend at that particular store or brand, so they make it worth your while by giving back as much as they can in cashback rewards when compared to what other rewards programs would give you for that same amount spent.
Check your account regularly
Pay attention to your statement and check for fees. If you notice an extra charge, contact the company and ask if the charge was made in error, especially if it’s a recurring fee.
If you have any problems with one of your credit cards, let them know so if someone can help! They want to make sure that every dollar counts when it comes to earning cash back rewards.
The best way to maximize cashback rewards on credit cards is by keeping track of what you spend and being smart about how you use them. You can also use portals to your advantage, which will help you earn more points or cash back when shopping online. Finally, it’s important not to charge more than what your budget can handle or else interest rates will eat up all those rewards!
