How to Maximize Your Cashback Earnings: Tips and Tricks

Earning cashback on everyday purchases is one of the easiest ways to put money back in your pocket. Whether you’re shopping online or in-store, cashback programs allow you to earn a percentage of what you spend back as rewards. However, simply signing up for a cashback program won’t unlock its full potential. To truly maximize your cashback earnings, you need a strategy. In this article, we’ll explore actionable tips and tricks to help you get the most out of your cashback opportunities.

1. Choose the Right Cashback Credit Card

One of the best ways to earn cashback is by using a cashback credit card. These cards give you rewards based on the categories you spend the most in, such as groceries, gas, or dining. But to maximize your cashback earnings, it’s important to choose the card that matches your spending habits.

• Look for cards with bonus categories: Many cards offer higher cashback percentages in specific categories. For example, some cards might offer 5% back on groceries or dining, while others focus on travel or gas. Pick a card that aligns with your lifestyle.
• Watch out for rotating categories: Some cards, like the Chase Freedom Flex or Discover it Cash Back, offer rotating bonus categories each quarter. Plan your spending around these categories to earn the maximum cashback.
• No annual fee vs. annual fee cards: If you’re not a big spender, a no-annual-fee cashback card may be best. However, if you spend a lot, a card with an annual fee might offer higher cashback rates that outweigh the cost.

Example: Let’s say you spend a lot on dining and travel. A card like the Chase Sapphire Preferred could help you earn higher cashback percentages in these categories.

2. Use Cashback Apps

Cashback apps are an excellent way to earn money back from purchases, both online and in-store. These apps partner with retailers to give you a percentage of your purchase back in the form of cash, gift cards, or other rewards.

• Rakuten: Formerly known as Ebates, Rakuten gives you cashback when you shop at over 2,500 retailers. Simply sign up for a free account, shop through their portal, and earn cashback automatically. The best part? Rakuten often offers double cashback promotions, so you can really rack up the rewards.
• Ibotta: Ibotta is a popular app for earning cashback on groceries and other everyday items. After shopping, scan your receipt through the app and claim cashback on eligible products. Ibotta frequently runs promotions, offering higher cashback for select products.
• TopCashback: Similar to Rakuten, TopCashback offers cashback when you shop through their site. What sets them apart is that they give 100% of the commission they earn from retailers back to you, making it one of the highest-paying cashback platforms available.

Example: If you’re buying a new appliance from Best Buy, checking Rakuten first could net you an extra 5-10% cashback, depending on promotions.

3. Stack Cashback Rewards

One of the best strategies for maximizing your earnings is to “stack” cashback rewards. This means using multiple methods to earn cashback on a single purchase.

• Credit card + cashback app: For instance, use a cashback credit card to make a purchase through a cashback app like Rakuten. You’ll earn rewards from both the app and the credit card, effectively doubling your cashback.
• Store rewards + cashback: Many retailers offer their own rewards programs. Combine these with your cashback card and app to maximize earnings. For example, use your Kohl’s rewards at checkout along with a cashback card and Rakuten to get three layers of rewards.

Example: When shopping online for clothes, first activate a cashback offer from Rakuten, then use your cashback credit card at checkout to earn on both ends.

4. Shop During Special Promotions

Retailers often run special cashback promotions during holidays and sales events like Black Friday, Cyber Monday, and Prime Day. These promotions can significantly boost the cashback percentage you earn.

• Holiday bonus offers: Cashback platforms and credit card companies often increase cashback percentages around the holidays. Keep an eye out for emails and notifications from your cashback apps and credit cards.
• Double or triple cashback: Some apps like Rakuten or credit cards offer double or triple cashback during certain times. You can maximize your rewards by timing your purchases around these promotions.

Example: If you plan on buying electronics or holiday gifts, wait for a sale like Black Friday when cashback rates are likely to be much higher.

5. Use Cashback on Bills and Subscriptions

Many people don’t realize that you can earn cashback on recurring expenses like phone bills, internet, and subscription services.

• Pay bills with a cashback credit card: Some cards offer rewards for utilities, phone bills, and subscriptions like Netflix or Hulu. Check your card’s cashback categories to see if you can earn on these types of purchases.
• Link subscriptions to cashback apps: For example, you can often earn cashback on subscription services like Spotify or Disney+ by purchasing through a cashback app like Rakuten or TopCashback.

Example: If your credit card offers 2% cashback on utilities and subscriptions, you could earn a decent amount just from paying recurring bills.

6. Leverage Cashback Browser Extensions

Most cashback platforms like Rakuten and Honey offer browser extensions that notify you when cashback is available for the site you’re shopping on. These extensions take the guesswork out of earning cashback by automatically applying it at checkout.

• Rakuten Extension: This extension automatically finds cashback deals as you browse online stores. If a retailer is offering cashback, you’ll be notified and can activate the deal in one click.
• Honey: Although primarily known for finding coupon codes, Honey also offers a cashback feature called Honey Gold. You can earn points for purchases, which can be redeemed for gift cards.

Example: You’re shopping for a new laptop and forget to check Rakuten first. Thankfully, their browser extension alerts you that you can earn cashback from the retailer you’re visiting.

7. Don’t Forget Cashback for Travel

Many cashback platforms and credit cards offer significant rewards for booking travel-related purchases, such as flights, hotels, and car rentals. If you frequently travel for work or leisure, this can be a great way to earn extra cashback.

• Travel-specific cashback cards: Cards like the Chase Sapphire Preferred or Capital One Venture Rewards offer enhanced cashback or points for travel-related purchases.
• Cashback on travel booking platforms: Sites like Booking.com or Expedia often partner with cashback platforms to offer rewards on hotel and flight bookings. Always check cashback apps before booking to maximize rewards.

Example: If you’re booking a vacation through Expedia, you could earn cashback from Rakuten on top of rewards from your travel credit card.

Maximizing your cashback earnings requires a smart strategy and attention to detail. By choosing the right credit card, using cashback apps, stacking rewards, and taking advantage of special promotions, you can significantly boost the money you earn back from your everyday purchases. Incorporating these tips into your spending habits will ensure you’re getting the most out of every dollar.