5 Common Mistakes That Keep You from Maximizing Your Cashback Credit Card’s Benefits

Cashback credit cards have become an increasingly popular tool for consumers looking to get more out of their everyday spending. At their core, these cards offer a simple yet powerful benefit: a percentage of your purchases is returned to you as cash rewards, which you can then use for future purchases. Whether you’re buying groceries, dining out, or shopping online, using a cashback credit card allows you to save money on everyday expenses. Over time, these small amounts can add up, enhancing your overall financial well-being by effectively lowering the cost of goods and services you already buy.

However, despite the clear advantages, not all cardholders reap the full benefits of their cashback credit cards. The truth is, a lot of people unknowingly leave savings on the table due to underutilization or misuse of their cards. In the following sections, we’ll take a look at the most common pitfalls cashback credit card users fall into that keep them from maximizing the benefits of their cards to help you avoid making these mistakes:

You’re Using the Wrong Card for Specific Purchases

Many consumers tend to rely on one primary credit card for all their spending without considering the benefits of having multiple cards. This practice, however, causes cardholders to neglect the unique rewards each card offers for specific types of purchases. Cashback credit cards often come with various rewards structures that can help you maximize your card usage. As such, it’s essential to understand the strengths of each card in your wallet to ensure you’re earning the highest cashback possible on your everyday expenses.

Take the Landers Cashback Everywhere Credit Card, for example, a credit card that offers up to 5% cashback at Landers. If you’re a heavy shopper of grocery items, it makes sense to use this card instead of a cashback card that rewards, for example, travel-related expenditures because the Landers Cashback Everywhere Credit Card aligns better with your spending habits. Starting with a base cashback rate of 3% if your total credit card spending is under PHP 20,000, the rate increases to 4% when you spend between PHP 20,000 and PHP 40,000. And to get the 5% cashback rate, you just need to accumulate a total credit card spend of PHP 50,000, no matter where you make your purchases.

You’re Underutilizing the Card’s Rewards Structure

Another significant mistake many cashback credit cardholders make is underutilizing their card’s rewards structure. There are some cashback cards that are designed to reward cardholders with great cashback rates in other specific categories, offering plenty of opportunities to boost their cashback earnings. If cardholders are unaware of these categories or fail to adjust their spending accordingly, they can miss out on substantial rewards that could have enhanced their overall savings.

That’s why it’s crucial to be informed about your card’s current reward structure to ensure you’re getting the best deals with every use. If you’re a Landers Cashback Everywhere Credit Card holder, for instance, you need to be aware of where, in particular, your card can earn cashbacks. With this card, you can enjoy 2% cashback on dining spends and 1% cashback on all other qualified transactions.* By knowing about the categories within which your card can earn cashback rewards, you can be more strategic with your credit card usage and enhance your overall savings.

You’re Ignoring the Card’s Other Perks

Beyond cashback rewards, many cashback credit cards come with a range of additional perks that can improve your financial and shopping experience. These may include benefits like 0% installment plans, purchase protection, extended warranties, travel insurance, special credit card promos, and even access to exclusive events or promotions. If you ignore these extras, you not only miss out on added value but also risk losing money on purchases or travel expenses that could be covered by your card.

Let’s take a look at the Landers Cashback Everywhere Credit Card once more. Although this card looks and functions like a credit card, it also serves as a Landers Superstore membership card. This means that it also gives you access to Landers members-only perks such as premium grocery shopping options, superb dining experiences and in-store services, and the occasional exclusive Landers giveaways. That said, it’s no surprise that the Landers Cashback Everywhere Credit Card is the ultimate credit card for Landers Superstore members.

You’re Missing Cashback Redemptions

While many cardholders accumulate rewards over time, they often forget to redeem them regularly, allowing their hard-earned cashback to go unused. Each credit card issuer has its own redemption policies, and knowing how and when to redeem your cashback can help you maximize its value. Some cards offer automatic redemption options. Others require manual requests. For the Landers Cashback Everywhere Credit Card, you need to claim your rewards—vouchers in this case— via the Maya app. To use your available cashback vouchers, simply follow these steps:

  • Log in to Maya and go to Cards
  • Select your credit card
  • On the bottom of your screen, tap the middle icon to open the Rewards screen
  • Select a cashback voucher
  • Tap Claim to reveal a voucher code
  • Present your voucher code at any Landers branch upon checkout

Cashback vouchers are automatically unlocked once you earn enough cashback points from qualified transactions using the Landers Cashback Everywhere Credit Card. To earn points, you’ll need to reach the 500 points milestone to receive a PHP 500 off voucher. In this rewards structure, one point equates to one peso.

You’re Carrying a Balance

One of the most detrimental mistakes you can make when using a cashback credit card is carrying a balance from month to month. Even though cashback credit cards offer enticing rewards, they can quickly lose their appeal if you incur high interest charges. When you carry a balance, the interest charges accumulate and can easily surpass the cashback you earn on your purchases. Therefore, aim to pay off your balance in full each billing cycle so that the cashback you earn is a net gain rather than a loss.

Cashback credit cards offer a valuable opportunity to enhance your financial well-being. However, unlocking their full potential requires more than simply signing up. You need to understand the intricacies of your card to be able to take advantage of its unique perks. With these tips, you can turn routine expenses into smart financial gains.

* Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.

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