How to save on shopping expenses with cash back offers

Time to read: 3 mins | December 26, 2016

Credit & debit cards have become an important part of our lives today. They have made cashless shopping so much easier, by eliminating the need to carry bundles of cash everywhere. Plastic money can help you save on the money spend, if used wisely. We all use debit/credit cards for shopping various things for ourselves, which include household items, luxury items, and much more, don’t we?

How about getting some money back for the purchases we make? Sounds interesting? Read on to know more about this:

Cash back credit card

Today, several banks offer cash back credit cards for their customers, in order to encourage them (customers) to save money as they spend. Saving and spending together? Yes, that’s what these cards aim to do. Whenever you make any purchase, a certain percentage of amount, is provided as cash-back offer for you. This money is either credited into your account or can be adjusted with your next month’s purchases, so that you get to save money while shopping.

A cash back credit card operates in different ways as per the terms and conditions of the bank that offers them. Some banks give you this offer when you use your card for a specified amount and also have a cap on the amount of cash back that can be provided to you in a single month. Whereas some banks don’t have any caps and offer you a fixed percentage of cash back for spends during the entire month and so on.

What should you be aware of?

While all of these concepts sound interesting and encourage you to earn more cash backs, you should note that banks will continue to provide you these offers only if you pay your dues on time. If you miss out on your payments, some banks revoke these offers permanently. Prior to signing up for cash back credit cards, you should go through the terms and conditions mentioned by the banks regarding the usage, so that you don’t face any disappointments later on. Furthermore, certain banks provide customers with the opportunity to choose which categories they want to avail cash backs on. They also offer rewards, which are applied to your card every time you shop. Banks offer sign-up bonuses, gifts, redemption of points and many more rewards; you can encash your points when you shop in participating stores.

So, the next time you go shopping, look up the participating stores and avail of discounts and save on purchases. However, don’t go swiping without any reason, it can prove costly. Therefore, it’s best to control the urge to use your card every time without need. Keep a tab on it.