If you’re tired of credit card companies charging you fees, raising interest rates and burying need-to-know details in fine print, why not make them pay you for a change? Handled responsibly, cash-back credit cards can be a win-win for you.

To use cash-back credit cards to your advantage, it is first and foremost critical you carry a zero balance. These types of rewards cards generally come with higher interest rates. So if you were to carry a balance from month-to-month, what you’re paying in interest fees would essentially negate your cash-back rewards. Of course, this is precisely what the credit card companies are hoping you do. Don’t give them the satisfaction, or your hard-earned money!

To make the most of a cash-back credit card rewards program:

• Choose a cash-back card with rewards that reflect your habits, as many cards’ cash-back incentives depend on where you use them and how much you charge each month.

• Look into a small business credit card if you do any sort of freelancing at all, even if it’s just selling items on an eBay or Amazon account. Often times, small business credit cards come with bigger cash-back rewards than those offered to consumers.

• Avoid the types of rewards cards that pay you back in “points” that are redeemable for purchases. That said, you may opt for a cash-back program that rewards you in gift cards provided they are from stores you actually need things from, like a grocery or office supply store.

• Favor cash-back credit cards that automatically reward you, instead of requiring that you remember to request your rewards each month.

• Throughout the month, use your credit card instead of cash, for both big and small purchases. Then, most importantly, pay it off at the end of the month. If you suspect you cannot pay off the charge by the end of the month, use a different credit card with a lower interest rate.
  

Yet, the most important tip of all is advice you should follow before deciding on a cash-back credit card at all. Considering that these types of rewards cards are intended to save you money, do not sign up for one of these high-interest cards if you suspect you cannot pay off the balance at the end of the month.

To ensure you’re getting the best deal, shop around for the best cash-back credit card program for you.

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