7 ways on how to make the most of a cash back card

Last updated on November 25th, 2021
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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There is more than what meets the eye when it comes to your credit card features. Knowing about how you can use features such as cash back rewards can help you when you are looking to save or need that financial boost to cover expenses. Here are 7 ways you can make the most of your cash back card.

Understand how it can work for you

Various credit card on the market come with a cash back features that rewards you for every time you swipe in cash. However, it is important that you read the fine print to know how you can unlock your cash back rewards without having to stretch your budget in order to redeem them.

You can use it to supplement your travel budget

Aussies love travelling. However, most of us struggle to not bust our budget and overspend. Commonwealth bank found that Australian went over their budget by $1,554 per person. You can use your cash back card for premium travel experiences, which can help you save on travel costs, food, and accommodation.

It can be handy when you’re shopping

Anyone would love to knock down a couple of dollars off their shopping bill, and a cash back credit card helps you do just that. You can get cash back or opt to swop cash for vouchers that can help you stretch your budget without breaking the bank. Having a card that matches the way you spend not only rewards you, but it is a sure way to not bite off more than you chew.

Know how to use targeted spending

There is a catch when it comes to reaping the rewards on your card. Most cards that come with such features have an annual fee which is part and parcel of you being able to access such rewards. Furthermore, credit card issuers have partnerships with certain hotels, stores, petrol stations and airlines where you have to spend to access points to get your cash back rewards. Reading up on where you can target your spending to gain points is a good way to start.

Don’t be in a hurry to spend your points

Cashback cards allow you to swop your points for cash or vouchers to amazing deals. However, try to avoid spending your cash back recklessly. It really pays to stack your cash back, which do not expire, to use for things that you might need later on. This especially comes in handy if you are planning to cut down on travel and household expenses.

Assess your cards points value

Your rewards are only as good as the value that is attributed to your points. Unfortunately, not all cards have the same point system. This is where comparing your card will help you to see if you are getting the best value for your money. Most reward cards tend to offer 1 point for each dollar spent. The premium cards can offer 2-3 points for every dollar you spend which can be used to accumulate points quicker. Checking whether the amount you pay to have your card is worth the value you are getting in return. The last thing you want is paying for a card that costs you a lot to maintain and offers you little value in return.

Can you meet the spending requirement to unlock your rewards?

As much as your card has some promising features that will help you cut back on expenses and save in the process, you need to see if you will be able to meet the spending fee per year to unlock such features. Most cards will require that you reach a certain target in spending to have access to unlock the benefits, which is something you need to carefully consider.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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