How to Get Maximum Cash Back Rewards from Credit Cards

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By: Aquib Nawab

Finance

1 - Choose the Right Card

Look for a cash back credit card that aligns with your spending habits. Opt for cards that offer higher percentages and bonuses in the categories where you spend the most each month, such as groceries, gas, dining out, etc. Consider cards with rotating 5% cash back categories that change each quarter.

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2 - Use for All Purchases

Put as much of your regular spending on your cash back card as possible. Use it to pay for groceries, gas, bills, subscriptions, etc. Set your card as the default payment method for online stores or apps to earn rewards on autopilot spending.

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3 - Max Out Bonus Categories

Pay close attention to the 5% rotating categories each quarter and shift more spending to those merchants or categories to maximize your earnings during that activation period. The bonus categories often include things like grocery stores, gas stations, restaurants, etc.

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4 - Grab Promotional Offers

Take advantage of new cardmember welcome offers and limited-time promotions to earn huge lump sums of cash back rewards right away. These can include large sign-up bonuses after meeting minimum spend requirements.

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5 - Shop Via Online Portals

Log in to your credit card's website and find the online shopping portal. Shop at your favorite online stores through this portal to earn extra cash back rewards on top of the regular earnings rate from your card.

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6 - Pay in Full Each Month

Avoid interest charges by paying your statement balance in full and on time each billing cycle. The high interest fees will negate the rewards you earn. Set up autopay from your bank account to make payments easy and automatic each month.

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7 - Redeem Rewards Frequently

Redeem your accumulated cash back for statement credits or bank deposits as soon as you hit the redemption minimums. Letting rewards expire or accumulate indefinitely provides no value. Set reminders to redeem.

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8 - Use Multiple Cards

Consider having 2-3 different cash back cards that earn bonus rewards in complementary categories. Use each card strategically to maximize category bonuses while avoiding debt.

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