Applying for a cashback credit card like the Landers Cashback Everywhere Credit Card is a practical choice for smart consumers who want to be rewarded for their smart spending decisions. This type of credit card allows you to earn a percentage of your spending back, saving you money on everyday purchases, travel, and more. To fully enjoy your cashback credit card rewards, however, it’s important to avoid common mistakes that can limit your rewards or even cost you more than you earn. By being aware of the following errors, you can ensure that you’re getting the most out of the credit card points that you earn.
Focusing Only on the Cashback Rate
It’s easy to be drawn to cards that advertise high cashback percentages, but don’t be fooled into thinking that a higher cashback rate automatically means bigger savings. The actual value of the cashback you earn depends on your spending habits and where the cashback applies. For instance, a card may offer awesome rewards for airline and hotel-related expenses, but if you rarely travel, you won’t benefit much from that offer. To avoid this, review the spending categories for each card and choose one that aligns with your regular expenses. If you shop and dine regularly at Landers, for instance, then you can maximize the rewards of using your Landers Cashback Everywhere Credit Card, which offers up to 5% cashback on purchases at Landers, 2% on dining, and 1% on other qualified expenses.*
Ignoring Spending Categories
Many users mistakenly assume that the cashback rate applies to all purchases equally. However, most cashback cards only offer high rates in specific categories like travel, dining, fuel, or groceries. If you use your card outside of these categories, you’ll earn much less or even no cashback at all. Familiarize yourself with your card’s cashback categories and structure your spending accordingly. If you have multiple cards, consider using the one with the best cashback rate for each category to optimize your rewards.
Failing to Track Cashback Caps
Cashback cards often come with caps that limit how much you can earn in a given month or year. Exceeding these caps means you’ll stop earning cashback, which can be frustrating if you expected rewards for a big purchase. This mistake usually happens because users overlook the fine print or lose track of their spending. Steer clear of such a mistake by regularly monitoring your spending to ensure you’re still earning cashback. Once you hit the cap, consider using a different card or payment method to continue maximizing your benefits.
Not Paying Off Balances in Full
The allure of earning cashback can sometimes lead to overspending or carrying a balance from month to month. However, any interest charges you incur will quickly outweigh the rewards you earn. For instance, if your cashback rate is 2% but your interest rate is 24%, the interest will no doubt wipe out your savings on cashbacks. To get the most value from your card, always aim to pay off your balance in full each month. This way, you can enjoy the rewards without accumulating debt and interest charges.
Missing Out on Special Offers
Credit card companies often run limited-time promotions that offer higher cashback rates on specific purchases or additional perks like bonus points or rebates. Using these deals can greatly benefit you, but a lot of people miss such an opportunity because they aren’t paying attention to the offers sent via email or the bank’s app. By staying informed and tracking these promotions, you can plan larger purchases around the best cashback rates, ultimately earning more than you would from regular spending.
Overspending to Earn Cashback
It’s easy to justify a purchase by thinking you’ll “earn” money back through cashback, but this mindset can actually lead to unnecessary spending. For example, buying something you don’t need just because you’ll get 1% cashback still means you’ve spent 99% of the total cost. Avoid this mistake and stick to a budget. Make it a point to only use your credit card for purchases you were already planning to make. Remember, cashback is a bonus—not a reason to buy more than you need.
Forgetting to Redeem Cashback
In some cases, users forget to redeem the cashback they’ve earned, or they assume the rewards will be automatically credited to their accounts. Depending on the card issuer, you may need to manually redeem your cashback, and if you forget, those rewards could expire or go unclaimed. To make sure you don’t miss out, set reminders to redeem your cashback regularly or check if your card offers automatic redemption. This way, you won’t leave any rewards on the table.
Using the Wrong Card for Certain Purchases
If you have multiple cashback cards, it’s common to accidentally use the wrong card for specific purchases. This results in missing out on higher cashback rates offered by another card. For example, you might earn 5% on groceries with one card but mistakenly use another that only offers 1% cashback. To avoid this, organize your cards by spending category and always use the card that gives the highest cashback for a particular purchase. This simple system can ensure you’re always maximizing your rewards.
Neglecting to Review Terms and Conditions
Many users fail to keep up with the updates in their credit card terms and conditions. As a result, they might miss out on new benefits, forget about changes to cashback categories, or fail to adjust to new limits. To prevent this, make a habit of reviewing the terms and conditions periodically. Banks typically send notifications when changes occur, so stay informed and make sure you’re still using your card in the most effective way possible.
By understanding these common mistakes and how to avoid them, you can make the most of your cashback rewards credit card. From tracking spending categories to paying off your balance in full each month, small adjustments can help you maximize the benefits and truly enjoy the rewards of using your card.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
