Cash Back rewards

[Andrew Jackson]

I was wondering how cash back rewards work. Do you automatically just not get billed for that 1% or 3% you are receiving back. Or does the cash back add up over your billing period and get applied all at once at the end of the cycle? Or maybe it is like rewards and you can get your cash back when ever you choose?

[disneysteve]

It varies from card to card. Some accumulate and you can redeem them at a certain level either for a check, a credit to your account or a gift card. Discover, for example, lets you redeem once you have $20 in cashback. If you buy gift cards, you often get a bonus of $5-$15 or more so that $20 cashback might get you a $30 gift card to certain companies. Other cards let you request a check when you reach a certain level. My Chase card does that. Still others automatically credit it to your account, I believe.

[Slug]

Still others deposit it into a brokerage account. Just depends on your card.

[ktmarvels]

My credit card doesn't actually give us the money. Rather it takes all of the rewards and applies it to one of our bills, January, I think. Now our bill is never less than the rebate, so I'm not sure if they would cut us a check or apply it to future months payments or what. Probably not the most useful to us, but it does take a huge chunk off of that bill.

[ukgaz]

My credit card doesn't actually give us the money. Rather it takes all of the rewards and applies it to one of our bills, January, I think. Now our bill is never less than the rebate, so I'm not sure if they would cut us a check or apply it to future months payments or what. Probably not the most useful to us, but it does take a huge chunk off of that bill.

I had that with my Chevron Credit card. They would apply my rewards as credit on my account

[snshijuptr]

I can have the cash direct deposited to any account I want after I hit a certain minimum limit. My points can alternatively be used for miles or other "gifts".