1. Pay your regular monthly bills with your cash back card to earn cash back on your telephone bills, mortgage, cable bills, and so on.
2. Get a card for all members in the household responsible for making purchases so you earn cash back on all purchases.
3. Look for cards that allow you to leverage your spending. Many cards, for example, offer a 5% cash back on purchases made in supermarkets, drug stores, and gas stations and 1% on all purchases.

Some cards offer 5% cash back on other types of purchases as well, e.g., in bookstores, restaurants, and home improvement stores. If you plan to remodel your home, for example, a card that gives you 5% cash back on purchases in home improvement stores can produce significant savings over time.

If you run a small business, look into getting a business card that will give you 5% cash back on such qualifying purchases as computers and electronics, office supplies, phone usage, and ground transportation, i.e., cab, limousines, train or bus. If you have employees who make purchases for the business, get a card issued for them as well. Business cards have the added advantage that they typically don’t have a ceiling on how much cash back you can earn.

Be sure that you pay off your balance in full on your cash back card each month. Otherwise you end up paying more in interest than you earn in cash back rewards. If you need to carry a balance, look for a card that offers the lowest possible interest rate instead.

If possible, keep two cards, one with cash back benefits and one with a low interest rate. Use the cash back card for expenditures that offer a high cash back rate, such as purchases in supermarkets, and pay that card off every month. Use the other card for expenses that you plan to pay off over time.

When choosing a cash back or rewards credit card, it pays to do your homework. That way you choose the best card for your needs and know how to take full advantage of it. Below are some of the things to look for when choosing a cash back credit card.

Which card offers the highest cash back incentives on purchases you frequently make? Several cards advertise a 5% cash back on purchases at supermarkets, drug stores, and gas stations. This is the equivalent of a 5% discount, which can turn into significant savings over the course of the year. If, for example, you spend $500 in groceries per month, this is the equivalent of $25 in savings each month, or $300 per year. And that’s just the savings on your grocery purchases! Some cards offer 5% or higher cash back on other types of purchases, e.g., in home improvement stores. If you make a lot of these types of purchases, these cards are worth considering as well.

Is there a ceiling on how much you can earn? Many cards limit the amount you can earn in cash back over the course of the year, so look for a card with a high limit. Some cards allow you unlimited earnings within their merchant network. If the members of this network are merchants that you would typically do business with, these cards are worth considering.

How is the cash back redeemed? Some card issuers will simply issue a credit directly to your credit card at the end of each year. Others will send you a rebate check. Still others will allow you to redeem only in specific increments of e.g., $25 or $50, and you have to call in and request the rebate check. Many people don’t realize that they have to do this, and never call. This is why it is important to know the terms of your card holder agreement, so you can be sure to follow up as needed.

Do the cash rewards expire over time? In some cases, the cash rewards will expire after a certain number months or if you don’t use your card for a period of time. Again, be sure that you are very familiar with the terms of the card you choose.

To determine the exact details of the offer, look in the Terms and Conditions or Rules and Regulations section of the offer and pay special attention to the sections that discuss Cash Back or Rewards.

If you use a cash back credit card for most of your purchases and routine expenditures, you can accumulate several hundreds of dollars in savings over the course of a year. Not bad pay for doing nothing other than simply using your card.

A cash back credit card typically will offer a 5% cash back on purchases at supermarkets, drug stores, and gas stations and 1% on all other purchases. However, there are numerous variations on the specifics of these programs, so it pays off to do your homework to make sure you get the best possible card for your needs.

A cash back credit card is an option to consider only if you pay your credit card balance in full every month. If you keep a balance on your card, look instead for cards that offer the lowest interest rate.