What to do with Those Cash Rewards Earned

One of the ways in which credit card companies try to get more consumers to choose them is with the rewards programs that they have set up with the card. When a person uses their credit card, they may accumulate points that can be turned into some types of rewards. For those who are credit card shopping, they often look at credit cards that are offering cash rewards for using that card. Most consumers agree that if you are going to be using a credit card, you may as well get something back for using this card. Those who earn rewards that they can turn into cash often find that they can earn enough cash that they are able to make big purchases. However, that is not the only way in which these cash rewards can be used.

Cash Rewards

[Read: Maximise Credit Card Rewards for Holiday Shopping]

Ways to Use Rewards in the Form of Cash

There are several ways that credit card companies are offering people to use the cash that they have bene rewarded. For those who are looking for ways to make this cash go even further, they are going to find that these suggestions can be useful:

Reduce the balance of your credit card

Many companies are offering the choice of turning these cash rewards into a credit onto the statement. In these cases, the amount of rewards that the person has is used to pay the balance, just as if the person were using their own bank account to make a payment. For many people this helps to pay off the balance faster, and it also means that you are actually paying less for those things that you used the credit card for.

Link to a shopping website to make purchases

Many cards are allowing you to link to Amazon, so that you can use these cash rewards for purchases. This can be great if you have several rewards that you want to cash in on, whether you are buying for yourself or letting these rewards accumulate so that the holidays are less of a strain on your budget.

Opt for gift cards

Another option that credit card companies are offering is allowing a person to cash in their rewards for gift cards to their favorite retailers. What makes this even better is that you can often cash in rewards for a higher amount of gift card. Thus you may only have $50 in rewards, but you could end up with a $100 gift card.

Give to charity

In a world that giving is becoming a popular option, many credit card companies offer these cash rewards to be used as a way to give to charity. When on your account, you may find that they have an option to donate these rewards to charities that are included in their list of charities. And if your credit card company is not offering this yet, then you could always cash these rewards out and do this on your own. For those who go with certain lenders credit cards, they will find that when opting for this option that the lender may actually match their contribution.

Simply get the cash

This is a choice for many consumers, however, not every credit card company is allowing this anymore. With this option you simply get a check in the mail or the amount is directly deposited into the checking account that you utilize the pay the bill for the card. For companies that are allowing this, they may even offer you an incentive for depositing into a checking or savings account that is associated with that lender, so it is worth considering.

[Read: Is Your Rewards Credit Card A Waste Of Money?]

Be Aware of Rules Associated with Rewards

When utilizing cash rewards on any credit card that you use, be sure that you are looking at the fine print. Many companies are now making rules about how these rewards can be used and in what way you can use these to get the full amount of the reward. For example, some companies are reducing rewards by a percentage if you were to transfer these rewards to a checking account. Other companies only allow a small percentage of rewards to be applied to the statement balance.

Other rules that you may want to watch out for are:

  • If you lose any of these rewards if you do not use them in a certain time frame
  • Any monetary fee for using these in stores or online shopping platforms
  • Be aware that the terms of a reward program can change at any time so be sure that you keep your contact information up to date so that you never miss out on any of these changes

[Read: Credit Card Rewards Can Be Dangerous]

Cash rewards for the credit that you use is a great incentive to use your credit card more. So a person should be sure that they are using their credit appropriately and utilizing these rewards in a way that is going to benefit them the most.