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.