Charles H. Miller
Cash back credit cards provide users with an easy-to-grasp way to get something back for every dollar they spend. To get all the benefits these product offer you should act responsibly and pay your monthly balance on time. And if possible don’t carry too much of it from one month to the other.
On the other hand, there are mistakes you should avoid to retain your cash back rewards. And this article will detail those mistakes, so you know what NOT to do to “keep the (cash back) money flowing”. Let’s roll, shall we?
MISTAKE #1: Picking the wrong credit card
If you live in the New York City, chances are you are not driving to work. So you don’t need a card that offers cash back on gasoline purchase, but you may want one that gets you a percentage or two back on dining at restaurants. Similarly, if you don’t travel that often, don’t get a card that rewards flights and hotel stays. In most cases, however, you could get a card that rewards shopping for groceries, or one of those cards offering a fixed amount back on all purchases.
MISTAKE #2: Keeping a lot of balance
A rolling balance could make your cash back rewards worthless. If you are going to earn something at the end of the day, you should pay as much balance as you can, every month. If possible do NOT carry balance from one month to the other. Though if you have to do that, try coming up with a plan to clear the balance.
MISTAKE #3: Buying stuff you don’t need to get cash back
Cash back rewards can be addictive as they may prompt you to spend more. Don’t fall into this trap as it could kill all the benefits of a cash back credit card. So think and re-think before swiping. The easiest way to handle temptations is to ask yourself: “would I be buying this item with a regular (non cash-back) card?” If the answer is “No”, then don’t buy it. Yes, it’s easier said than done…
MISTAKE 4: Not registering for rewards
Some cash back cards include rotating categories and require users to register every quarter for the rewards. This process is pretty straightforward, but many people forget to do that. You are smarter than that, so add the upcoming registration date to your calendar. Then you will be able to benefit from higher rewards that are typically included with this sort of cards (with rotating categories).
MISTAKE #5: Letting rewards expire
Some credit card reward programs, including some offering cash back rewards, require that you spend the money/points earned in a given year. Or they may have other points/cash-back expiration date. You should not let your rewards expire — read the offer carefully to prevent that from happening. The easiest way to do this is to make rewards redemption an annual event, which you will (again) add to your calendar.
You are ready!
Now that you know what NOT to do, you are better prepared to get yourself the cash back card. Or to be more careful with the one you already own.
If you don’t have a cash back credit card, and want to get one (cause really – why not get it?), you should check out offers from different banks. The links below offer different options, so check them out…
