How to Redeem Your Cashback Credit Card Rewards

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Cashback credit cards are brilliant for those who want to make a little cash back from their purchases. However, many people don’t consider how you actually redeem this cash. There are actually three different ways to do so.

Before that, click here to find out the best cashback credit cards.

In this article, I’ll explain the three methods so that you will know which type you prefer to utilize. Let’s get into it, shall we?

#1 – Statement Credit

When redeeming cashback rewards as a statement credit, it gets credited directly to your credit account. Instead of taking the cash to use for yourself, it is instead used to pay off some of the credit you owe on the card.

This is especially good if you find it difficult to pay off your credit by the end of the month. It is always good to have a positive balance when the next month comes around to avoid interest fees.

#2 – Direct Deposit/Check

Another option is to have your cashback rewards deposited into a debit account of your choice. You can have it set to do this automatically or you can have a check sent to you which you can then cash yourself.

This option allows you to keep the cash and use it for whatever you want. You should still ensure that your credit account is paid off or else the extra cash won’t help all that much.

#3 – Gift Card

The final option for redeeming your cashback rewards is through a gift card. Using gift cards for your redemption sometimes gives you bonus rewards. However, it also means you can only use the money in the designated gift card location. If you spend often in certain places, this can be quite a good option.

So, which of these three options sounds right for you? Make sure you decide before applying for a cashback credit card. The redemption process is obviously quite important!

Happy spending, everyone! 

Check out this site on how to save on petrol!

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