If you have a cashback credit card, you may wonder how best to redeem your rewards. The good news is that it’s easy and painless. Follow these steps to learn how:
Check your cashback balance.
- To check your cashback balance online, go to the website of your credit card provider and sign in to your account.
- Click on the “Cashback” tab or menu item, and then click on “Check Reward Status” (if it is not already selected).
- Enter your PIN or password if prompted, then select which type of rewards you want to see, such as Cashback or Points Redeemed, and click on “Go” (or similar). Your current balance will be displayed at the bottom of the page.
Choose your method of redemption.
Cashback is redeemed in the form of a statement credit. You can choose to have your cashback applied to all purchases on your credit card or only certain types of purchases (e.g., travel or dining).
You can also use the cashback as payment for other products and services, like gift cards for retailers you shop with regularly and charitable donations.
Redeeming cash back on a credit card is easy.
Redeeming cash back on a credit card is easy. Cashback is a reward for using a credit card and typically comes in the form of points or miles that you can redeem for things like gift cards, travel rewards and merchandise.
But what exactly are these rewards? Cashback does not mean interest—it’s not an amount your credit card company paid you for borrowing money. And it’s not a rebate either (a refund). Instead, cashback is simply a percentage of your purchase that you get back after making purchases with the card.
Explaining the 3% cash back card, SoFi advisors say, “You’ll earn up to 3% cash back on all purchases and can redeem it* directly into crypto with your SoFi active invest account.‡”
You might have multiple ways to redeem your rewards.
Cashback cards are used to pay off your credit card balance. For example, if you have a credit card that offers cash back rewards, but the value of those rewards is less than what you owe on your balance, then it makes sense to redeem the cash to avoid paying interest on your debt.
This is especially true if no other fees are associated with using one of these cards (such as annual or foreign transaction fees).
Cashback cards can be used as payment for bills or services. If a company that provides service through email or phone calls accepts credit cards as payment methods, then they may also accept cashback cards.
For example, some internet service providers will allow their customers to use their earnings from cashback sites to pay their monthly bills instead of putting money directly into an account maintained by the ISP itself.
With this guide, you can now redeem cashback on credit cards.
Hopefully, you’ve learned how to redeem cashback, use it and why it is essential to your finances.