Learn 6 Helpful Tips for Using Cash-Back Credit Cards

3.  Interest is still charged

While many credit cards offer initial bonuses and interest-free promotions, keep in mind that these perks only apply for a limited time. You should exercise caution while using a credit card that offers cash back.

Never go into debt by spending more than you have each month. Interest costs can add up quickly if you carry a loan from month to month. If that happens, the cost of borrowing money could end up being more than the value of any rewards you receive in the form of cashback.

4. Maximum rebates

There is no cap on how much you may earn in cash back with most cards, but there are a few that do. This might not be the best option for those who like to spend a lot of money. If your potential earnings are capped, you will not be able to receive the highest possible bonuses.

The American Express Blue Cash Everyday® Card offers a 3% cash back bonus at U.S. supermarkets, but only on purchases up to $6,000. More than that, and your cash backdrops to 1% from 3%. Reward Dollars are a sort of cashback that may be redeemed for a credit to your account.

5. Separate travel incentives

Credit cards like Chase Freedom Unlimited® let you use your cash-back earnings toward flights, hotels, and more. Nevertheless, not all cards provide this benefit. If you rarely go out of town, this isn’t a big deal because you won’t be spending your travel awards. But, if you are always on the road, you may want to investigate travel credit cards that tailor their perks to your habits.

6. Other shopping benefits

The great majority of credit cards provide increased cash-back rewards at a wide range of businesses, such as restaurants, grocery stores, gas stations, wholesale clubs, online video-streaming services, and online retail giants like Amazon.com

You may have a card that gives you bonus points in a different category every quarter. This quarter, you may get 5% cash back on dining out instead of the usual 2% or 3%. Keep in mind that you can earn at least 1% on all other purchases with every swipe. You should also think about the fact that different credit cards come with different rewards. To the tune of as much as 8%, you can get bonus cash back on select purchases made with select credit cards.