There are countless ways to use your cash back – so let’s explore the most popular: Statement credit, gift cards, online redemption, and a physical check or direct deposit into your checking account.
The most important fact to consider: Each account has its own criteria for how the cardholder can redeem. Hint: often the account will favor one method over others for maximizing cash back. Also, please note: Several accounts will have a minimum redemption threshold, often $25 or $50.
A couple of the banks will give a bonus for a statement credit. For example, if you’re someone who has a Bank of America checking account, you may be able to increase your cash back by 10% when redeeming from your Bank of America credit card into your checking account.
It’s also possible to get a bonus towards future cash back. An example of this would be Barclay’s CashForward card. Redeeming in minimum increments of $50 will yield a 5% bonus toward future accruing cash back.
Discover is best for gift cards. Discover cardholders can boost their cash back by purchasing gift cards. With deals creating $50 from $45, and better, at many popular locations; it’s a pretty strong list.
While receiving a physical check should be the last possible option; sometimes, if you’re planning to close an account, or allow it to go unused, clearing out the remaining cash back will be a no-brainer.
Understanding the points system: value and redemption:
Some of the cards use a points system. The basic rule-of-thumb is: At the very minimum, 100 points equals $1 – however, 100 points can also be worth 2 dollars, or more, in certain advanced scenarios.
Rarely is redeeming online the best option. Sure, it’s convenient – yet resist the urge to redeem online unless the incentive is clear. But, then again, it’s your money, you earned it – so if redeeming online feels good: indulge!
What are some of your cash back redemption success stories?