How To Get 5% Cashback from Credit Card?

The credit card company considers supermarkets, gas stations, and drugstores as “Everyday purchases.

Some cash-back cards provide a higher rebate when used at supermarkets, gas stations, and drug stores.

The precise definition of these “everyday purchases” (as issuers frequently refer to them) should be defined in the fine print of a card’s “terms and conditions.”

Check them out! so that you can pick the best credit card to earn a reward.

 

how to maximize the credit card cash back
how to maximize the credit card cash back

The extra cash you can make is well worth a few minutes of your time.

For everyday purchases, if you use a credit card like Citi Costco, the cashback for gasoline is 4% plus 2% if you have Costco Executive membership card.

Chase Freedom credit card has a 5% cash back gas station offer on up to $6,000 spent in the first year.

Supermarkets are self-contained stores that primarily sell a full range of food products for home consumption.

Drugstores are independent businesses that sell prescription, proprietary, and nonprescription drugs.

Gas stations are self-contained businesses that sell vehicle fuel to customers.

According to the everyday purchase definition, Costco is a warehouse club, or Walmart is a department of superstores.

So Costco and Walmart are not qualified for 5% cash back or reward from Credit Card companies if they have the promotion.

 

chase freedom credit card
chase freedom credit card offers good rebates

 

Typically, it is the merchant’s responsibility to ensure that a purchase is coded correctly in order to qualify for an enhanced rebate.

However, you must read the fine print to determine which merchants qualify and who is responsible for ensuring that transactions are properly coded.

See also  How To Cut Your Gasoline Bill By Using Credit Cards

Occasionally, lenders will send out a list of specific merchants where you can earn a higher rebate and/or where there will be no “cap” (a limit) on the amount you can earn.

If you shop at the merchants on this list frequently, your earnings will quickly add up.

They are typically online retailers, so if you frequently shop online, you should strongly consider this option.

You may come across a card that offers a fantastic rebate, but when you read the fine print, you’ll discover that it only applies to purchases made within a specific time frame, such as the first 30, 60, or 90 days.

Keep a close eye on what happens to the terms when the time limit expires.

Is the rebate drastically reduced, as is customary?

Is there an annual fee?

Will the interest rate go up?

Although you should always pay your balance in full each month, financial difficulties do arise.

If you have to carry a balance at some point, you’re much better off with the lowest possible rate.

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