How to Get Cash Back on a Credit Card
Getting cash back on a credit card is a pretty straightforward process. Once you sign up for a credit card with a reward program, you will be automatically active in their cash-back system, allowing you to shop at your regular retailers while earning a percentage of each qualified purchase. Before you choose a credit card, however, keep in mind that not all cards offer cash back for the same type of items or at the same level.
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Instructions
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Find out the specifics of your credit card. Some companies offer credit only on purchases during the first 6 months of use, while others are permanent. Also, the percentages may vary according to the type of purchase. For example, you might get 5 percent at certain places, such as gas stations and supermarkets, but less on purchases at other stores.
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Get a list of preapproved shopping places if your credit card company offers one. To get cash back on your credit card, you may need to shop at prescribed places and follow certain rules. Most credit cards offer cash back only for a limited number of retailers, and many have rules as to how much you can get back in a single month. For example, you may get 3 percent back on all purchases up to a specific dollar amount, but only 1 percent--or nothing--after that.
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Visit CreditCard to compare the different levels of cash back offered by banks, companies and institutions (see Resources below). Once you click on the "Cash Back Credit Cards" button, you will be taken to a page showing more than 30 of the most popular opportunities, and you can compare the benefits and drawbacks of each card and then apply for one if you want.
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Read the fine print. Not only do some cash-back credit cards have limits on how much you can get back, those limits may also be tied to how much money you spend. This means you may get 1 percent back only for purchases up to a certain point, but get 2 percent once you have spent over a certain threshold amount for the month.
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Ask for a reward check at the end of the month or when you have accumulated enough money. Many credit cards do not automatically award the cash back to your account but instead accumulate it in a different account. Once you are ready to get this back, you must ask for a check or for the money to be credited to your account.
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Tips & Warnings
Keep in mind that cash-back credit cards often have a high interest rate. Unless you pay your balance in full every month or keep it to a minimum, the rewards may not be worth the extra expense.
Few credit cards offer cash back for online purchases. Check in advance with your company to see which retailers are authorized.
Use your credit card as often as possible, no matter how small the amount. Even cents will add up and earn you rewards if you accumulate them consistently.
