Maximizing savings and taking advantage of rewards is top of mind for many shoppers. Whether someone’s looking for coupons or assessing their payment methods, there can be a variety of factors to consider when making a purchase.
Steve, the PayPal Credit connoisseur featured in this Tips & Tricks, uses a few different methods to maximize cashback rewards. Check out some of his tips below.
Understanding expenses can help to identify potential areas to cut back or save. Since some cashback cards feature higher rewards for certain categories — like travel, gas, or groceries — mapping out spending habits may help to identify a useful cashback card. For example, a cashback credit card that offers a higher percentage cash back for spending at restaurants could be suitable for someone who dines out frequently.
It may be helpful to review card terms and rewards categories to see where an upcoming purchase could yield more cash back. If someone is planning to purchase a certain kind of item, they could seek out a store that falls into a category that offers higher percentage cash back. Some cashback cards may even offer cash back for shopping at specific stores or with certain companies, so it’s useful to review any offers the card may have.
For example, someone might be looking to buy a new laptop. They may usually go to a regular electronics store to purchase it, but instead look at their cashback card offers. The card might offer a higher percentage back at a different retail store where the laptop could be purchased.
Cashback earnings can be transferred into a designated savings account. This approach not only safeguards rewards from potentially being spent impulsively but may also help create a habit of consistent saving. In turn, that cashback amount will grow, depending on the savings rate offered by the savings account. And while cash back may not be a significant amount per statement, putting it into savings could turn rewards into a valuable, growing asset.
Before applying for or using a cashback credit card, be sure to review all terms, conditions, and potential fees. Utilizing any form of credit may carry risks, and missed payments, late payments, or not paying a balance in full can lead to growing interest and other potential fees. Individuals should always spend within their means and consider whether credit is a suitable option for their personal circumstances.
Learn about the PayPal Cashback Mastercard®.