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How to maximize cash back rewards

By Chesutiko

Rewards programs for credit cards have become more complex over the years, sometimes too complex for some of us to understand. It is important for all of us to know how to maximize the benefits of our cash back rewards.

Take advantage of regular payments
Regular payments are something we all dread having to make. However, if you are the owner of a credit card that provides cash back rewards, then you can use these regular payments to your advantage. Regular payments, such as telephone bills, electricity bills, mortgage payments, monthly subscriptions and so on can be paid with a credit card that offers cash back rewards. This way, you'll be making the most of your cash back rewards program, receiving money back on the price of everyday living.

Pay off debt in full
Debt should always be paid in full at the end of each month so that you can avoid having to pay extra money in interest. Interest fees have been known to plague cash back rewards programs in such a way that you end up having to pay back more than you are receiving. If you're caught in this situation, then it may be best for you to look for a credit card that offers a lower interest rate, while still maintaining adequate cash back reward bonuses. Maximizing your cash back rewards will definitely require you to clear up any debt, so always make sure you are debt free by paying off your balance in full at the end of each month.

Online cash back rewards
When thinking of purchasing an item, it may be worth searching the Web for certain companies that will give you even more cash back. A good example of a company that offers this is Fatwallet.com. Items can be purchased from merchant partners that are willing to give up to 40 percent cash back, sometimes more, on top of the cash back rewards you already receive just by using your credit card.

If possible, have two cards
If you are able to maintain two credit cards, then this can also be used to your advantage. By having one card that is used for cash back rewards and another that has a low interest rate, you can use the former to buy anything you intend on paying off quickly, and the other for purchases you wish to pay off over time. In doing this, you will avoid paying interest on your cash back rewards card.

Always be on the lookout for better cash back deals than the one you currently have, and remember to use your credit card at stores that give out the most rewards. Make the most of your cash back credit cards today!

Article by Chesutiko

Published: August 28, 2009

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