5 Little-Known and Rarely-Used Perks of Cashback Credit Cards

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Don’t miss out on 5 cashback credit card perks.

Key Point

• You can use your cashback rewards to pay your annual fee or get statement credit.
• Purchases made using a cash back credit card may be eligible for an extended warranty.
• Many cashback credit cards offer higher reward rates for certain types of purchases.

When choosing a credit card, most people focus on finding the card with the lowest interest rate. But there are many other benefits of credit cards, such as cashback rewards.

Cashback rewards are one of the most popular types of rewards offered by credit cards. Most people are familiar with the basic premise of cashback rewards, but many cashback credit cards have some lesser-known perks. Here are five unused cash back credit card benefits.

1. Pay your annual fee or credit card bill

If you have a cashback credit card with an annual fee, you may be able to use the cashback benefit to pay the annual fee. You may also get statement credit. A statement credit is a monetary or cash benefit credited to your account by your credit card issuer. It’s like getting free money to pay your credit card bill.

Some cash back credit cards send rebate checks directly to the customer rather than depositing funds into the customer’s account. This is a great way to get rewarded because you don’t have to remember to deposit a check and wait for it to clear before using your funds. Plus, rewards are delivered to your mailbox every month so you can easily track them.

2. Offset future travel expenses

If you have a cashback credit card, you can actually use cashback benefits to offset future travel expenses. means $20 to use on your next trip. This is a great way to save money on your next vacation.

Using remuneration to pay for travel expenses typically yields a higher rate of return than using it for other types of expenses. So, if you want to get the most out of your rewards, it’s best to use them for travel. Some travel credit cards also offer discounts on car rentals and hotels. You may get discounts when you book a car rental or hotel room using a cashback credit card. For example, some cards offer up to 20% off car rentals.

3. Get an extended warranty on your purchase

Purchases made using a cash back credit card are eligible for an extended warranty of up to two years, depending on the card. This means that if your purchase fails within the warranty period, we may be able to repair or replace it free of charge.

To take advantage of the extended warranty, you must purchase using the card and register the manufacturer’s warranty. Credit card extension policies typically begin after the original warranty expires.

4. Use your cashback to donate to charity

If you have a cash back credit card, you can actually use your cash back rewards to donate to charity. This is a great way to support the causes you care about without spending extra money.

5. Higher Reward Rates and Bonuses for Certain Purchases

Many cashback credit cards offer higher reward rates for certain types of purchases. Some credit cards offer 5% cash back on purchases. So compare the reward rates offered by various cards to find the one that gives you the most return on your spend.

Many cash back credit cards offer annual bonuses or sign-up bonuses as a way of thanking customers for choosing the card. These bonuses can take the form of additional cash back, bonus points, or free hotel stays or airline tickets. So check if the card you choose has a bonus.

As you can see, credit card cashback offers quite a few lesser-known perks. These are just some of the benefits available when you have one of these cards. Always check with your card issuer to see what benefits are available.