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You’ve heard this term before, but do you really know what it is and how it works? Cashback is a term used to describe the earning back of a percentage of money spent on a retailer, or most commonly, on a credit card. Credit card companies usually offer customers the opportunity to earn cashback on the purchases made by enrolling in promotions or making purchases with selected partners or through shopping websites. The cashback earned varies according to the program or plan you sign up for. Usually, when we talk about cashback, it’s about spending more money to make money. Cashbacks are great reward plans, and it helps to make your money work harder for you. Here are three ultimate ways you can earn extra and score some cashback on the purchases you make.
Using loyalty cards
This is by far the most common scheme we’re all familiar with. Loyalty cards come from gas station operators to shopping malls, even e-commerce sites. At least 85% of Americans own at least one loyalty card. It makes sense to be part of a loyalty program, especially if you regularly shop at a certain place. If you see signup for a loyalty card at your neighborhood grocery store, pharmacy, or even cinema, sign up, and you’d be on your way of earning triple the cash value of your points.
Cashback credit cards
A popular choice for cashbacks, these cards offer cash rewards when you spend on specific brands or specific categories. It’s similar to a loyalty card, except you accumulate money instead of points. The cash you get in return is based on a calculated percentage of the expenditure of the card. In other words, it pays you to shop for the best deal. Depending on your card, the cashback is either paid annually or monthly, and be sure to check the minimum amount you need to spend on your card to qualify and start to accumulate cash rewards. Don’t forget that you’ll have to pay interest when it comes to credit cards IF you don’t pay off your balance in full each month.
You can also make full use of cashback websites such as Macy’s cashback, ShopAtHome, and TopCashback to earn money as you continue shopping. The amount of cashback you receive will depend on the retailer. Through cashback websites, you can conveniently link your debit or credit card to the cashback account and earn both on the brick-and-mortar shop, as well as their online shopping website. You can get your cashback paid either into your bank account or to your PayPal account. Alternatively, you can also redeem it as a gift card.
Keep in mind that cashback doesn’t mean it’s a ticket to spend more. You should view cashback programs as a way of making your money work harder, or in other words, see it as a form of bonus or added value when you earn rewards. Spending on groceries, gas, and travel is an example of the more popular categories that earn more cashback. That said, spend wisely and don’t fall into debt.