At O1ne Mortgage, we prioritize your financial well-being and aim to provide you with the best advice to make informed decisions. In this article, we will explore the concept of cash back credit cards, how to earn and redeem rewards, and tips to maximize your cash back benefits. For any mortgage service needs, feel free to call us at 213-732-3074.

What Is a Cash Back Credit Card?

A cash back credit card is a type of rewards card that allows you to earn cash on your purchases. Unlike travel rewards cards, the value of cash back rewards is straightforward. For instance, if your card offers 2% cash back, you earn $2 for every $100 spent. This simplicity makes cash back cards an attractive option for many consumers.

How to Earn Cash Back Rewards

Cash back credit cards can be categorized based on their rewards systems:

Flat-Rate Cards

Flat-rate cash back cards offer a consistent percentage of cash back on all purchases, typically 1.5% or 2%. These cards are ideal for those who prefer simplicity and do not want to manage multiple reward categories.

Bonus Categories or Tiered Rewards Cards

These cards offer different cash back rates depending on the type of purchase. For example, you might earn 3% cash back on gas and 2% on dining. These cards are beneficial if you spend significantly in specific categories.

Rotating Rewards Cards

Rotating rewards cards offer high cash back rates (often 5%) on categories that change every quarter. While these cards can be lucrative, they require you to keep track of the changing categories and activate them to earn the bonus rewards.

How to Redeem Your Cash Back Rewards

Cash back rewards can be redeemed in various ways, including:

• A check
• A statement credit
• Direct deposit into your bank account
• Gift cards

Some cards also offer options to use your rewards for travel bookings, charitable donations, or online purchases. Be sure to check if there are minimum balance requirements for redeeming your rewards.

What Credit Score Do You Need?

Most cash back credit cards require at least a fair to good credit score. The best cards, offering high rewards rates and additional perks, typically require a very good or excellent score. There are options for those with poor credit, such as secured cards, but they may come with higher fees and lower rewards rates.

How to Maximize Cash Back Rewards

To get the most out of your cash back credit card, consider the following tips:

Choose the Right Card

Analyze your spending habits and select a card that aligns with your needs. Periodically review your choice to ensure it remains the best option as your creditworthiness improves.

Remember Your Cards’ Bonus Categories

If you have a tiered or rotating rewards card, keep track of which card to use for each purchase. Use notes or stickers to remind yourself of the bonus categories.

Sign Up for Extra Earning Opportunities

Take advantage of limited-time offers to earn additional cash back.

Review the Terms

Read the credit card agreement to understand what purchases qualify for cash back. Some transactions, like buying gift cards or lottery tickets, may not earn rewards.

Get Matched with the Best Cash Back Cards

If you’re unsure which cash back card to choose, consider using a card comparison tool to get personalized offers based on your credit profile and spending habits. This can help you find the card that maximizes your rewards and perks.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we are committed to helping you achieve your financial goals. Whether you’re looking to buy a new home or refinance your existing mortgage, our team of experts is here to assist you. Call us today at 213-732-3074 for personalized mortgage services that cater to your unique needs.