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Cash back credit cards let you earn rewards on purchases. You can redeem your rewards for cash back – typically statement credits, checks or direct deposits. You may also be able to redeem rewards for things like gift cards and travel.
How much you can earn and for what types of purchases depends on the credit card's terms and conditions, though most cash back cards work in similar ways. Here are some answers to common questions about cash back credit cards.
When redeeming cash back rewards, your credit card may have a few options. Common methods include:
While most cards don't charge a fee to redeem cash back rewards, there may be an annual fee on the card. If you’re considering a card with an annual fee, think about whether the cash back rewards you're likely to earn – along with other perks – balance out the annual fee.
That depends on the credit card, so be sure to carefully read the terms and conditions. Some offer unlimited cash back. Others, for example, may have a periodic cap on the total cash back you can earn in specific purchase categories.
Some cards offer a higher rate for specific types of purchases, such as groceries or restaurants. Depending on your card program, you may need to enroll to receive the higher earnings. There may also be maximum earnings cap on those purchases within specified periods.
Many credit cards allow you to redeem your rewards for a statement credit. However, this typically does not count toward your minimum payment due. For more specifics, check your card’s terms and conditions.
Your rewards may expire under certain conditions. For example, rewards might expire after a certain amount of account inactivity or upon closing your credit card account. Check the terms and conditions of your reward program.
Some cash back cards require that you accrue a minimum level of rewards before you can redeem them for cash back. To find out whether there’s a redemption minimum, check your reward program’s terms and conditions.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
