Five Back Gift Card Rewards - How to Make the Most of Them

Posted by seomypassion12 on October 5th, 2023

Gift cards are available in nearly every store, from major retailers to supermarkets to websites that specialize in selling them. Here’s how to use them for maximum rewards benefits.

Gift cards are reloadable, fivebackgift generally have no expiration date and can be used anywhere that accepts the card’s payment network. They’re also an easy, thoughtful gift for friends and family.
Earn 5% Cash Back

There are a few things you can count on every holiday season: an overabundance of gifts; bearded out-of-towners breaking into homes through the chimney; tone-deaf neighbors singing at your door; and a steady stream of gift cards. Luckily, gift card redemption can help you avoid those pesky overspending issues that plague so many consumers.

Most credit card rewards programs allow you to redeem your points or miles for gift cards. And while some credit card issuers have their own gift card shops where you can buy branded gift cards, you can also use third-party sites that offer a more diverse selection of retailers and brands.

Gift cards make great gifts and stocking stuffers, but the best way to maximize their value is to use a card that earns you 5% cash back on purchases in your preferred purchase categories. The WalletHub research team compares more than 1,500 credit card offers to identify those that offer at least 5% back in one or more categories, taking into account the types of purchases you're most likely to make with each card and any potential restrictions, drawbacks or costs associated with each offering.

The top cash-back card, the Citi Double Cash, earns you 2% back at grocery stores and gas stations (on up to ,000 in combined spending per quarter) and 1% on all other purchases. That makes it a solid choice for anyone who spends significant amounts at both types of stores, since grocery stores tend to carry more gift cards than other retail options.

Another great option is the Amex Gold, which gives you 4 points per dollar on the first ,000 spent at U.S. supermarkets each calendar year, then 1 point per dollar. That makes it a good card for buying gift cards from major office supply chains, such as Staples, where you can find gift cards for retailers that don't usually earn rewards with other credit cards.

Discover it Cash Back has a similar card, the Discover it Card, which earns you 5% back in rotating categories like restaurants and wholesale clubs (up to ,500 in combined spending each quarter) and a variety of other goods and services. It's important to note that Discover has started releasing its bonus category offers a quarter at a time, instead of all at once, which can cause confusion for existing cardholders used to the old system.
Earn 1% Cash Back

A credit card with cash back rewards gives you a way to earn points on everyday purchases like food and gas, which can be redeemed for money back or gift cards. Redeeming these rewards can help you check off some major financial to-dos, like paying down high-interest debt and building a savings cushion. However, to maximize the benefits of these rewards, you'll want to be strategic about how you redeem them and set a plan in place for doing so.

Many cash back credit cards offer a variety of ways to redeem your earnings, including receiving a statement credit, a paper check or a direct deposit into your checking or savings account. Some cards also allow you to redeem for gift cards to your favorite stores and brands. You'll likely have to meet a minimum redemption amount before you can use these options, though.

You'll often find a wide range of cash back card offers at various banks, with each offering unique benefits and perks. Before selecting a card, it's important to consider the specific categories that will earn you the most rewards and your spending habits. For example, the --content---annual-fee Citi Custom Cash card allows you to earn 5% cash back in one of three different select reward categories each billing cycle from a list that includes grocery stores, gas stations and restaurants and up to 1% in all other spend.

Other cards offer bonus categories that rotate quarterly, allowing you to earn more on select items during each quarter. For instance, the Discover It Card offers 5% cash back on up to ,000 in combined purchases at department stores and online-only department store purchases each quarter, while the U.S. Bank Cash+ Visa Signature card offers 2% cash back at groceries, gas stations and restaurants, plus 1% on all other purchases.

If you can't decide whether to choose a card with a flat-rate or rotating-category cash back, you may want to consider getting two cards to maximize your earning potential. Keeping track of both of your rewards and keeping track of their respective categories can be tricky, though.
Earn 2% Cash Back

If you’re not already a member, check out ibotta, one of our favorite cash-back apps that gives you back a portion of every purchase at places like Walmart and Target, as well as some smaller merchants (like CVS). You can also earn cash back on gift card purchases from many major retailers and even get a little more money than the face value on select cards.

Getting the most out of your credit card rewards can be easy with a bit of strategy and careful planning. For example, a credit card that offers 5% cash back on specific categories that rotate each quarter can make it easier to earn hundreds of dollars in extra rewards a year without changing your spending habits.

With some of these cards, you can earn 5% cash back on your first ,500 each quarter at two categories of your choice from a list that includes wireless plans, utilities, TV and internet services, grocery stores, restaurants, gas stations, and electric-vehicle charging stations, then earn 1% on all other spending. New cardmembers may be able to score an upfront sign-up bonus, too.

The Ink Business Cash credit card, for example, gives you 5% cash back on office supply store purchases and 2% cash back at gas stations and restaurants (on up to ,000 in annual bonus spend). That’s a great way to take advantage of this popular credit card and rack up some cash back on the things you buy each day.

As with any card, it’s important to remember that you can only earn as much as your credit limit allows. Overspending will result in interest charges that can quickly eat into any extra rewards you may have earned. If you have a balance, consider paying it off in full each month to maximize the value of your rewards.

Another thing to keep in mind is that your credit card rewards can be redeemed for multiple different ways, including as statement credits, physical checks, or even applied toward a mortgage payment. Some rewards may require you to meet certain spending requirements to qualify, so check carefully to understand the details of each credit card before signing up for one.
Earn 3% Cash Back

If you use gift cards regularly, a rewards credit card that earns cash back on gift-card purchases is a great way to earn even more from your spending. Many of these cards also offer high cash-back rates in specific categories, making them an excellent choice for those who shop at a lot of different places. Some of these cards also include sign-up bonuses, which can further increase the value of your rewards.

If your goal is to get the most out of your credit-card purchases, look for a card that offers the highest cash back rate in the categories where you spend the most money. Using the card as often as possible in these categories can help you maximize your earnings and make the most of your rewards.

There are a number of ways to redeem your credit-card rewards, including cash, gift cards and travel. Each has its pros and cons, so consider the options carefully before you decide on a redemption strategy. It’s also worth checking the terms and conditions of your credit card to see if there are any restrictions on how you can redeem your rewards.

Another option is to invest your cash-back earnings. You can choose from a variety of online investment services that can help you set up a recurring investment plan depending on your needs and objectives. However, you should be aware that the value of your investments may fluctuate.

Lastly, you can put your cash-back rewards toward paying off debt. Some cards allow you to apply your reward dollars directly to your debt balance, while others provide the option of depositing them into an interest-bearing account or using them to make a minimum payment on your existing balance. To determine the best option for your situation, review your current debt and savings goals, as well as any other expenses you have. Then, take the time to evaluate each card’s rate structure and bonus categories to find the one that’s right for you.

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