Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
When should you redeem cashback rewards?
Redeem cash back often unless you earn bonuses for other redemption options.
When you have a cashback card, it’s fun to watch your rewards pile up. But as you do, you might start wondering when you should cash out.
It’s best not to overthink it. But as a rule of thumb, err on the side of redeeming rewards early.
When is the best time to redeem cash rewards?
There’s no “best” time to redeem cash rewards, but it’s generally a good idea to redeem them regularly. This helps you avoid losing them to expiration and possible decline in value.
Here are a few factors to consider when deciding whether to redeem your rewards:
- Redemption minimum. Some providers require you to have a minimum before redeeming — often $25.
- Expiration date. If your rewards expire soon, it’s definitely worth cashing them in.
- Reward devaluations. Credit card providers often change reward values. Protect yourself by redeeming your cash back consistently — especially if your cash back are from earned points.
- Bonuses for certain redemptions. You might get a reward boost if you redeem your cash back for options other than cash or cash deposits. For example, if you redeem a $20 gift card through the Discover rewards center, you’ll get at least $5 added to the card.
Compare cashback credit cards
Will my cash rewards expire?
Whether your cash rewards expire depends on your provider. With some issuers, your cash back won’t expire as long as your account is open and in good standing. With other issuers, your rewards will expire after a certain time.
A good way to check on your provider’s policy is to read your card’s terms and conditions.
For example, the Citi® Double Cash Card‘s terms explain how your cash back might expire.
Can my cash rewards be revoked?
Your provider can revoke your cash back under certain circumstances. Typically, it will do so if your account isn’t in good standing — for example, because it’s not current on payments or it’s been used for fraud.
Here’s an example: The Chase Freedom Unlimited® credit card’s terms explain that your rewards typically won’t expire, though there are certain instances in which they might.
Will my rewards lose value?
Your rewards can lose value if your provider changes its terms. Luckily, this typically doesn’t happen because most providers peg your rewards to a percentage of your spending.
As an example, check out how Bank of America distributes rewards for the Bank of America® Cash Rewards Credit Card:
Be more vigilant when your provider distributes cash back in the form of points. The value of your points depends on what you redeem them for, and your provider could change redemption costs at will.
What can I redeem cash back for?
Depending on your provider, you may have a few options to redeem your cash back. Here are a few possibilities:
- Statement credit.
- Electronic deposit into a checking or savings account.
- Gift cards.
- Travel — hotel stays, flights, car rentals, etc.
Unless you get bonuses for redeeming a certain amount of cash back, it’s usually wise to redeem rewards as often as you can. This will help you avoid losing cash back to expiration and devaluations.
Frequently asked questions
More guides on Finder
NOW REWARDS Mastercard® review
Earn flat rewards on all of your purchases.
Best TD Bank credit cards of 2021
The Best TD Bank credit cards are solid, but nothing special.
Best credit cards for travel in 2021
Here are our picks for the top travel cards on the market.
Should you refinance your FHA to a conventional loan?
Is it time to refinance your FHA to a conventional loan?
Best airline credit cards of 2021
Have your sights set on travel this year? We compared nearly 100 cards to find the best deals and perks.
Online banks Simple and Azlo are shutting down; here are two alternatives
If you’re a current Simple or Azlo customer, here are your options for switching banks.
How do AutoZone rewards work?
Earn credits while taking care of your vehicle.
How do CVS rewards work?
Learn how to get up to 10% in rewards with the loyalty program at CVS.
Best store credit cards of 2021
Here are our picks for the best store cards of the year.
Best no annual fee credit cards of 2021
Our picks for the best no-annual-fee cards.
Ask an Expert