• July 17, 2023
  • Posted by General Electric Credit Union
  • 4 read

Maximizing Rewards: Cash Back Credit Cards

In today's fast-paced world, credit cards have become an integral part of financial lives. Among the various types available, cash back credit cards have gained immense popularity. These cards give users the opportunity to earn rewards on everyday purchases, allowing them to get a little something back on their spending. However, to truly harness the power of cash back credit cards, it's essential to employ smart strategies and make informed decisions. In this blog post, we will delve into the world of cash back credit cards and provide you with valuable tips to maximize their benefits.

Maximize the benefits of cash back credit cards

1. Choose the right card

Selecting the right cash back credit card is crucial to optimizing your rewards. Different cards offer varying cash back percentages on specific categories, such as groceries, dining, travel, or gas. Assess your spending habits and pick a card that aligns with your lifestyle. 

Some cards provide higher cash back rates in rotating categories, while others offer consistent cash back across all purchases. Take your time to compare options and select a card that maximizes rewards in the areas where you spend the most.

2. Understand the terms and conditions

Before diving into cash back credit card usage, it's essential to thoroughly understand the terms and conditions associated with the card. Familiarize yourself with any annual fees, interest rates, and reward structures. 
Pay close attention to introductory offers, promotional periods, and any spending thresholds required to unlock additional rewards. Being aware of these details will help you plan your spending accordingly and avoid any surprises.

3. Pay your balance in full and on time

Make the most of your cash back credit card by paying off your balance in full and on time every month. Carrying a balance and incurring interest charges will negate the benefits of any cash back rewards you earn. By being responsible with your payments, you can enjoy the rewards without falling into the trap of unnecessary debt.

4. Explore credit card offers

Many cash back credit cards offer enticing sign-up bonuses to attract new customers. These bonuses typically require you to spend a certain amount within a specific timeframe. If you are planning a significant purchase or have upcoming expenses, timing your application to coincide with these expenses can help you unlock valuable sign-up bonuses. However, always ensure that you can comfortably meet the spending requirement without overspending or accruing debt.

5. Combine and stack rewards

Don't limit yourself to just one rewards credit card. Depending on your spending habits, consider owning multiple cards that offer different reward structures. By strategically utilizing various cards for different categories, you can maximize your rewards potential across a wide range of purchases. For example, you might use a cash back credit card to earn 2% at U.S. supermarkets and wholesale clubs, then reach for a points-based card to rack up 2x the points at gas stations

Cash back credit cards provide a fantastic opportunity to earn rewards on everyday purchases and optimize your spending. By selecting the right card, understanding the terms and conditions, paying your balance in full, exploring sign-up bonuses, and combining rewards, you can unlock the full potential of these cards. However, it's important to remember that responsible credit card usage is key to avoiding debt and maximizing your financial gains. With a strategic approach and a little bit of planning, you can turn your cash back credit card into a positive financial opportunity. 

Here at General Electric Credit Union (GECU) we offer a full suite of credit cards with different reward structures so you can find your perfect match. Opt for our Gold card1 to earn unlimited cash back with no cap. Or, discover the benefits of our points-based Platinum card.2 Grow your points balance and redeem it for travel, gift cards, cash, and more!

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