How to Make the Most of Credit Card Cash Back Bonuses

Most credit cards now offer cash back bonuses to their customers. With a little planning, you can make the most of this free money.

Difficulty: Moderately Easy

Instructions

1. Set bills to automatically charge to your credit card. Get cash back on the water bill you pay anyway.

2. Don't use cash or checks. Most stores now allow you to charge amounts as low as $5. Make the most of your purchases and watch your cash back balance soar.

3. When redeeming your cash back bonuses, skip the cash. Most credit cards also offer gift cards to a variety of stores and most of those gift cards will give you extra money. If you have $40 available in cash back bonuses, you may be able to get a $45 or $50 gift card. Be sure to choose a store you shop at often.

4. Know the limits. Many credit cards have a cap on how much cash back they offer. Know the limits on your cards and rotate them appropriately.

5. Check your credit card's monthly programs. Many credit cards will offer special promotions with extra cash back bonuses for specific types of purchases. One month it may be gas purchases, the next it may be food purchases. Take advantage of any extra money they offer.

Tips & Warnings

• Always pay your credit card balances in full each month. Getting $5 or $10 back doesn't do a lot of good if you are paying $30 a month in interest charges.
• Know how much you spend. Because credit cards feel like "magic money", it is easy to overspend.
• Always check your credit card statement for erroneous charges. Don't assume the charges are correct. Take a moment and double-check them.