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Cashback rewards are quickly becoming a popular way to save money while you spend. You may have seen credit card offers that offer cashback on purchases, but the concept goes beyond credit cards. Cashback rewards can also be found through shopping portals, cashback apps, and loyalty programs.
So, how does cashback rewards work, and how can you take advantage of them to save big? Here’s everything you need to know about cashback rewards.
What is Cashback?
Cashback is a kind of incentive offered by various companies, stores and credit card issuers. It’s a program that rewards customers for making purchases. Instead of earning points or miles towards future purchases or travel, you earn a percentage of your purchases back in cash.
How does Cashback work?
Cashback generally works in a couple of ways. Credit cards that offer cashback rewards typically reward you with a percentage of your purchase back in cash. These percentages can vary from 1% to 5%. Other cashback programs work as a shopping portal or app. You’ll purchase products through the portal, and cashback is paid out to you after your purchase is confirmed.
Some stores or brands have cashback programs built into their loyalty programs. You earn cashback by purchasing from the store or brand and accumulating points or rewards that can be redeemed for cash.
How to Maximize Cashback Rewards
Cashback rewards can be an excellent way to save money, but you can maximize your earnings by taking advantage of the following tips:
#1 Choose the Right Card
If you’re looking for a credit card that offers cashback on your purchases, choose the right one. Look for credit cards that offer high cashback rewards or those that match your spending habits. For example, if you spend more on groceries, look for cards that offer high cashback rewards on groceries.
#2 Shop with Cashback Apps or Portals
Cashback apps and portals such as Ebates, Honey, and TopCashback are a great way to earn cashback when shopping online. Using these portals for everyday purchases can add up to significant savings over time.
#3 Look for Bonus Cashback Deals
Many stores or shopping portals offer bonus cashback deals, especially around the holidays, so don’t forget to check for upcoming deals.
#4 Pay Your Credit Card Balance in Full
If you have a credit card that offers cashback rewards, make sure you pay your balance in full each month to avoid paying interest charges. Otherwise, you may be losing more money than you’re gaining in cashback rewards.
Bottom Line
Cashback rewards are an excellent way to save money on your purchases. You can earn cashback on almost everything you purchase, from groceries to clothes and electronics. By following the tips mentioned above, you can maximize your cashback rewards, save money, and enjoy some financial freedom.
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