How to Take Advantage of Cash Back Credit Cards

Many credit card companies offer "cash back" or "point" incentive programs that offer rewards for using the company's card to make purchases. Usually, the more purchases you make each month, the more cash back or incentive rewards you will earn. "Cash back rewards" means that you are entitled to a refund of a certain percentage of the purchases that you made during the month. You can receive your reward in the form of a traditional check or a credit to your account. "Incentive points" are points that are earned for every dollar that you spend. They can be exchanged for gift cards, hotel stays, flights and other consumer products.

Instructions

1. Acquire a credit card that offers "cash back" or "point incentive" programs. Discover Card and American Express are well known for their incentive programs. You may already own one of these cards. However, if you do not, you will need to apply for a card by filling out and submitting a credit card application to the card company.

2. Enroll in an incentive program if necessary. Some cards will enroll you in their incentive program automatically. However, for others, you will need to contact your credit card company to sign up. Beware of credit card companies that charge an annual fee in order to participate in their incentive programs. Always ask you card provider if there is a fee for the program. If so, assess whether the program is worth the enrollment fee, especially when there are free programs available.

3. Use your card often to make purchases and pay off your balance in full each month. This is the only way to truly take advantage of credit card incentive offers. The more you spend, the greater your cash back or incentive points will be. Use your card to buy groceries, gas, clothing and any other purchases that you would normally use your debit card for. Then pay off your entire balance at the end of each month to avoid negating the benefit of your incentive program with interest payments.

References

• Dumb Little Man.com: How to Really Maximize Your Credit Card Rewards