Research is the best way to evaluate cash back credit cards and their offers. With comparison shopping, you’ll be able to choose the card that best suits you and your spending habits. Do I need to change where I primarily shop? Is there an annual fee? What’s the finance charge for late payments? When exactly can I redeem my cash reward?
In regards to this final question, you’ll also want to find out how the cash reward is redeemed. All cards are different and it’s important to know exactly how your card works so that you get the most out of its earning potential.
Some card issuers redeem cash back rewards by crediting the card back, while other companies will mail a check once a certain threshold is met. Still for other cash back cards, the reward could be a gift certificate, a gift card, or a direct deposit to your financial institution (if the bank is the issuer).
Ways Cash is Redeemed
- Credit to account: Typically an automatic transfer, the credit is made directly to the cardholder’s balance once a certain earning limit is reached (e.g. $25 or $50).
- Check: Some companies will send a check automatically while others will require you to contact them for the rebate.
- Gift certificate or gift card: For retail cards, a gift certificate or card is most often issued. This tactic keeps the consumer shopping at the same store (e.g. an iTunes card that can only be spent on Apple products).
- Direct deposit: If your card is issued by a bank, you may be able to set up a direct deposit (which will work similarly to the credit transfer described above).
To Call or Not to Call?
As for how to get your cash back reward, some issuers will automatically credit you, while others may require you to call and request the rebate. In such instances, it’s not uncommon for the cardholder to be unaware of this step, meaning that no call is made and the cash just sits in the account – waiting. Or worse: the cash reward expires and is effectively forfeited.
Imagine that. Doing all that work in carefully spending on your cash back card, only to not get the benefit(s) in the end? To avoid this, be sure to read the terms and conditions (or rules and regulations) carefully. Know what you’re getting beforehand. Ideally, you’ll want to choose a cash back reward program that’s automatic. Yet, even if it isn’t, knowing what to do when a cash back does become available will make the process seem nearly as simple.
The good thing is, is that with electronic statements these days, it’s easy to keep track of your balance and any earned rewards. If at $50, you’re able to request a check. Don’t hesitate to do so. Request it and zero-out your balance to start anew. To be safe, don’t use your credit card account as a mini savings account. It’s better to keep it building, but only towards a certain amount. Once reached: redeem it.
