Has it ever crossed your mind why there are so many options for a 3% cash back credit card? The reason is simple: they’re awesome. You don’t need to try hard to earn 3% cash back; it comes automatically with each purchase. So here is what you can use it for:
To buy back unused gift cards
One of the most common uses for 3% cash back cards is to buy back unused gift cards from third parties. Gift card resale platforms like Cardpool and Raise sell used gift cards at a discount, which can be redeemed for money or used to make purchases directly.
You can also buy back your own unused gift cards from the issuer if it offers a service like this.
To pay recurring bills
You can also use your cash rewards card to pay recurring bills. Some of the most popular options are:
- Cable, internet and phone services
- Utilities like gas and electric bills
- Insurance premiums (home, auto, life)
As per the experts at SoFi, “Depending on the terms of your credit card agreement, you may be able to set up automatic payments so that you don’t have to worry about missing a payment or forgetting about a due date.” Automatic bill pay can save time and money by eliminating late fees and helping keep track of all your expenses in one place.
For mobile phone bills
You can also use your 3% cash-back card to pay your mobile phone bill. If you have a business, consider using the card for business expenses.
- Find a card that does not charge foreign transaction fees and sign up for it if you still need to get one.
- Make sure that the card’s interest rate is lower than any other credit card interest rate you might have so that you can save money by using this method instead of paying off your phone company directly through them or another credit card with an even higher interest rate attached to it.
For purchases from your favorite brands
Using a cash-back card, you can purchase from brands that you love, even if they don’t offer the best rewards program. For example, you could use your 3% cash back card to buy gas from your preferred gas station or use it to purchase food at your favorite restaurant (assuming they don’t accept credit or debit cards).
To pay for big expenses, like home renovations
Whenever you need to make a big purchase, like a new washing machine or refrigerator, or even furniture for your home, you can use a cash-back card to pay for it.
When paying with the card at a store, select loyalty rewards as your payment method and then enter your PIN. You’ll receive 3% cash back on all purchases made with that card in that store. If you need to know whether or not an item counts as being purchased in-store versus online after making a purchase, get in touch with the customer service number of your credit card company and ask them.
In conclusion, there are a lot of different ways you can use rewards cards with cash back. If you’re looking for something specific, like mobile phone bills or home renovations, it makes sense to consult the list of rewards available through each card and see which one best fits your needs. On the other hand, if you want a general-purpose card that will get you 3% on everything from groceries to gas stations—and everywhere in between—then almost any cash-back credit card will do just fine!
