Cash back credit cards offer a great way for consumers to make the most of their financial product landscape and gain rewards for the purchases that they would make anyway. Yet, it can be easy to overreach and negate the benefits that a cash back card provides altogether.

With this guide, learning how to tackle ownership of a reward card for the greatest measure of financial freedom can be made easy. The truth is that with some good habits and an understanding of how you can make the most of this opportunity, utilizing your cash back card with great results is simple. Read on to discover how you can manage your finances with greater fluidity today.

A cash back card provides you with kickbacks on every dollar spent.

The key feature of a cash back credit card is that it provides you with a percentage of the dollars spent with the account as a cash reward. This may come as a summarized total each month or as individual additions to your reward pool after each purchase made with the card. Whether your bank uses Mastercard or Visa, a cash back card is a standard offering for those with good creditworthiness and a credit approval upon applying for the new card.

For those who are new to the use of a credit card within the realm of typical consumer spending, this has the potential to revolutionize the way you think about money. With a high-quality cash back credit card for Canada, you can start earning money back on each purchase. If you use this card in place of your debit card to make gasoline and grocery purchases each week, the rewards will start piling up in no time just by virtue of using a different card to facilitate the typical expenses that you normally field with your bank account.

Manage debt with resolve and knowledge.

Many people find themselves quickly digging a financial hole once they are approved for a new card. Because you are able to get away with minimum payments that come in under the total statement each month, it’s possible to become negligent with the account and spend that extra leeway elsewhere. This creates a financial debt that must be repaid with haste. Allowing balances to roll over into the next month (or beyond) is a surefire way to add stifling interest onto the principal owed back to the bank or other financial institution.

Managing your debts means spending with the credit card account as if it were your regular debit account. Spending more than you have available is the quickest way to land yourself in debt, so it’s best to consider this cash back card as simply a way station between your checking account and the merchants that you’re paying for these typical expenses. By paying off the debt in full each month, you ensure that you are earning the rewards at their full potential. If you don’t carry a revolving balance, you are able to enjoy the kickbacks without any additional expenditure. In other words, you are able to enjoy a blanket savings of a percentage point or two on each and every purchase that you make.

Select the right card for your spending habits.

Another important consideration is in the category offerings that many banks utilize. Some credit cards will allow for a single cash back rate whereas others offer a categorized reward program, meaning that some expenses count for double the cash back potential. Finding a card that lines up with the things you spend the most money on can give you the best overall benefits.

Consider these elements when applying for your next credit card.