Credit cards are a convenient way to make purchases, but did you know that some credit cards can also give you cash-back rewards? Cash-back credit cards have become increasingly popular in recent years, and for a good reason. If you use your credit card frequently, you could potentially earn hundreds of dollars in cash-back rewards each year. In this article, we’ll look at cash-back credit cards and answer, “Can I get cash-back from my credit card?”
How Do You Get Cash-back From a Credit Card?
Getting cash back from a credit card is relatively easy. Most cash-back credit cards automatically reward you with cash-back when you use your card to make purchases. The amount of cash back you can earn depends on your credit card and its rewards program.
Cash-back rewards typically come as a percentage of your total purchase amount. For example, if you have a credit card offering 1% cash-back and make a $100 purchase, you would receive $1 in cash-back rewards. Some credit cards offer higher cash-back percentages, up to 5% or more, but these usually come with spending limits or other restrictions.
Who Should Get a Cash-back Credit Card?
If you use your credit card frequently and pay off your balance in full each month, a cash-back credit card could be a great option for you. Cash-back rewards can add up quickly, and you can earn hundreds of dollars each year.
However, if you carry a balance on your credit card and pay interest charges each month, a cash-back credit card may not be your best choice. The interest charges you pay on your balance will likely outweigh any cash-back rewards you earn.
Earning Rewards on a Cash-back Credit Card
To earn rewards on a cash-back credit card, there are two main factors to consider: the welcome offer and your monthly spending.
Welcome Offer
Many cash-back credit cards offer a welcome bonus, which is a lump sum of cash-back rewards you can earn by meeting a spending requirement within a certain timeframe. For example, a credit card may offer a welcome bonus of $200 if you spend $1,000 within the first three months of opening the account.
Monthly Spending
In addition to the welcome bonus, you can earn ongoing cash-back rewards by using your credit card to make purchases. The amount of cash-back you can earn depends on the credit card and the rewards program it offers. Some cards offer higher cash-back rewards for specific categories, such as groceries or gas, while others offer a flat cash-back rate on all purchases.
What Is the Best Cash-back Credit Card?
The best cash-back credit card for you will depend on your spending habits and the rewards program that best suits your needs. Some popular cash-back credit cards include:
- Chase Freedom Unlimited: Earn 1.5% cash-back on all purchases, with no annual fee.
- Blue Cash Preferred Card from American Express: Earn 6% cash-back on select U.S. streaming subscriptions, 3% cash-back on transit, 6% cash-back at U.S. supermarkets (up to $6,000 per year, then 1%), and 1% cash-back on all other purchases, with a $95 annual fee.
- Citi Double Cash Card: Earn 1% cash-back on all purchases, and an additional 1% cash-back when you pay off your balance, with no annual fee.
How To Redeem a Cash-back Bonus
Redeeming a cash-back bonus is usually a simple process. Most credit card companies allow you to redeem your rewards through their online portal or mobile app. Some cards also offer the option to redeem your rewards as a statement credit, which can be applied to your balance, or as a deposit into your bank account.
It’s important to note that some cash-back credit cards have minimum redemption thresholds, meaning you need to accumulate a certain amount of rewards before you can redeem them. For example, you may need at least $25 in cash-back rewards before you can redeem them.
Is a Cash-back Card Worth It?
Whether a cash-back credit card is worth it depends on your spending habits and how much you can earn in rewards. If you use your credit card frequently and pay off your balance in full each month, a cash-back credit card can be a great way to earn extra money.
However, if you carry a balance on your credit card and pay interest charges, the interest charges may outweigh any cash-back rewards you earn. In this case, focusing on paying off your balance may be better than earning rewards.
Cash-back vs. Cash Advance
It’s important to note that cash-back rewards are not the same as a cash advance. A cash advance is when you use your credit card to withdraw cash, usually at an ATM or bank. Cash advances typically come with high fees and interest charges, and should only be used in emergencies.
Cash-back rewards, on the other hand, are earned when you use your credit card to make purchases. The rewards are usually a percentage of your purchase amount, and can be redeemed as a statement credit or deposited into your bank account.
Final Thoughts
Cash-back credit cards can be a great way to earn extra money on your everyday purchases. By understanding how cash-back rewards work, and choosing a card that best suits your spending habits, you can maximize your rewards and earn hundreds of dollars in cash-back each year. However, it’s important to use your credit card responsibly and pay off your balance in full each month to avoid interest charges and fees.
If you’re planning a trip to Los Angeles, you’ll want to make sure you have a comfortable and convenient place to stay. There are plenty of hotels in the area to choose from, but it can be overwhelming to narrow down your options. To help make your decision easier, check out this list of top hotels in Los Angeles, California. Whether you’re looking for a luxurious experience or a budget-friendly option, there’s something for everyone. And if you book your stay with the right credit card, you may even be able to earn some cash-back rewards to make your trip even more affordable.
Hello, and welcome to my travel website! My name is Jennifer E. Sheahan, and I’m a passionate travel enthusiast who loves to explore new places and experience different cultures. I believe that travel is not just a way to escape from the daily grind, but also a way to learn and grow as a person.