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September 1, 2022

4 Smart Ways to Use the Cash Back from Your Credit Card

Use these tips to maximize the money you get back from your credit card purchases.

Cash-back credit cards are one of the most popular types of cards out there. They are an awesome way to save money and help you take control of your finances. Here are some helpful tips to ensure you are using your cash-back card to its fullest potential.

Build up your nest egg

Having a bit of extra money to sit on for a rainy day is never a bad idea. It is impossible to know when you might need to tap into your savings and using your cash back is an easy way to build up your nest egg. Make sure that you are cashing out your rewards and moving them to an account that can accrue interest if you want to make this money go even further. You can’t earn interest on your cash back money while it’s sitting in your credit card account.


Another use for your cash back is to add it to your investment portfolio. Because you most likely won’t be getting a large amount of money back, this is a relatively low risk way to expand your investment portfolio. Two ways you can invest are through stocks and bonds. Stocks are a high risk high reward option for investing, where you purchase stock in a company and sell it at a later time (hopefully for a profit). Bonds on the other hand are used by companies to borrow money from investors like you. Once the bond has matured, the company that you invested in will pay you back along with any interest it may have accrued.

Pay off debt

Like many Americans today you may have picked up some debt along your financial journey. Whether it’s student loans, a mortgage, or credit card debt; using your cash-back rewards is an effective way to start paying it off. Chipping away at debt is a great way to regain control of your financial health and alleviate some stress as well. If you have to make payments for multiple debts it is recommended that you pay off the debt with the largest interest rate first to prevent it from growing out of control.

Plan for your future

Perhaps you have something coming up that you know is going to require a substantial amount of money; like a child, house, car, or retirement. It is best to start saving your money sooner rather than later so it’s there when you need it. Unlike a nest egg, savings for a specific goal should never be used for other purposes unless truly necessary. This will help you stay on track with all your finances.

Citizens First Bank is a great place to open up an account and start saving for your future! We offer a variety of saving plans as well as loan options to help you succeed in fulfilling your financial goals. Feel free to stop in, give us a call, or visit our website today.