3 Ways to Get the Most from Cashback Credit Cards

Cashback is one of the best rewards offered by credit card companies. A percentage of spend will be credited back to the card. The cashback typically ranges from 1% to 3%; it could go up to 5% in some special purchases like limited-time offers and one-time offers. Every month a Cashback card if used right, could save up to 6000 INR. There are several ways to maximize your cashback. You need to understand your monthly spends pattern by calculating and categorizing spends of previous months so that you can pick the right card in the market that gives maximum cashback. You can also check out Standard Chartered Bank’s Ultimate credit card to know more; the card gives both cashback and reward points based on the type of spend.

Make the most from the best cashback credit card. Source: mymoneymantra.com

3 Ways to get most out of the Cashback Credit Cards

Choose the right card for you:

Picking the right specialty card based on your purchases is the first step to start saving with the best Cashback credit cards for your needs. Spends on your regular needs such as fuel, groceries, and movies must be rewarded by the credit card as cashback. Also, you need to be watchful on which card can give the best cashback on periodic high spendings like international travel and currency exchanges. You must do enough research to find the best fit for you, comparing the cards available in the market is essential. For the same spend type, some cards may offer only 1% cashback whereas few might offer up to 2.5%, the rewards should align with your interests. That way you can count on a good sum of money through cashback. However, the terms on conditions of rewards and cashback are prone to change, you should be watchful to the changes in policies. It is recommended to run all your spends through one card for a maximum benefit unless having another card can clearly benefit you on a monthly basis.

Pay all Utility Bills with Credit Card:

The best cashback credit card includes utility bill payments in its reward program. Make sure you pay all your monthly/periodic utilities using your cashback credit card. Monthly utilities typically include:

  • Mobile/Landline phone bill
  • Internet
  • Cable bill
  • Utilities
  • Insurance
  • Electricity and gas pipeline.

Also, you need to make sure that your card is a default payment option on your E-commerce accounts and other possible payment platforms. You should also be on the lookout for special and one-time offers that usually give a high percentage in cashback.

Use the cashback credit carefully:

Once you have made a good amount of cashback, it is important to use it carefully. It is recommended to plan a big necessary purchase such as kitchen appliances or durables through rewarded cashback. Oftentimes, you will be able to redeem cashback into your debit account. You can also use it to pay your credit card bill partly to increase the line of credit for that month. You should be aware of the expiry date of rewarded credit if there is one. Putting the cashback credit to the right use is an essential step of getting most from the best cashback credit cards that suit your requirements.

You must ensure you are making credit card repayments as per schedule to enjoy the continued cashback benefits. There is a misconception that credit cards lure cardholders to increase their purchases through rewards. Credit card companies usually charge 2% to 3% of sales value to the merchants when their card is used for payment, through reward programs such as cashback they are merely sharing a portion of revenue with you. However, it is important for you to plan your monthly finances carefully, credit cards help with it in a great way by providing a line of credit. Also, by keeping the above pointers in mind, you can easily find the best cashback credit card that eases up your lifestyle needs.