How to Use Cashback Rewards to Earn Free Coffee

About 64% of American adults consume at least one cup daily. While coffee may not be as expensive, it can be if you consider the expense in the long run.

But imagine getting free coffee. It could mean enjoying your free beverage without spending a dime – or at least without feeling like you are paying. As impossible as it sounds, you could leverage your cashback rewards for coffee. 

This guide offers tips and everything you need to know about using your cashback rewards to get coffee.

What Are Cashback Rewards

Cashbacks are reward programs where customers earn back a percentage of the money they spend when buying an item or service. Business people and credit card companies offer cashback to attract and retain customers.

When offered by business entities, the reward program involves earning redeemable points through discounts on other goods or services the same merchant offers. When offered by a credit card company, the reward program involves getting cash back on the card, which can be used for making payments anywhere.

Understanding Cash Back Credit Cards

Credit cards have always been about allowing holders to pay for items on credit. As the marketer continues getting saturated with credit cards, credit companies are forced to be innovative to stay at the top of the market resulting in the popularity of cashback credit cards that allow customers to enjoy a small fraction of the profits made by the credit card companies.

Credit card companies achieve this by crediting a cardholder a percentage of their spending for specific purchases such as gas, restaurant bills, and groceries. Most cashback credit cards have caps on how much cash back a cardholder can earn in a month, quarterly, and yearly.

Cashback credit cards come in different forms, but two are the most common; flat-rate cashback and bonus category cashback. As the name suggests, flat-rate cashback credit cards offer a fixed percentage on all qualifying purchases. On the other hand, the bonus category cashback credit cards offer a variable percentage based on the type of purchase.

Earning Free Coffee through Cashback

Register for a Cashback Credit Card

Cashback rewards are not free cash; they only allow you to enjoy some of the profits made by your card company. But there is no harm in spending it on what you love because it doesn’t feel like you are getting money out of your pocket, and coffee is a good idea.

The first step in getting free coffee through cashback rewards is to register and get approved for a cashback credit card with a good company. Cashback credit cards can have high-interest rates, so you may want to do due diligence to ensure that the allure of getting some cash back doesn’t result in you having to pay much more than you shouldn’t.

Make Payments Using Your Card for Qualifying Purchases

You only get cashback rewards if you use your card. But like earlier, it is not free money you get, so be cautious about your spending. You must also know what types of purchases qualify for rewards and focus on those.

According to statistics, an average American has more than three credit cards. While most cards will have similar offers, there may be some differences, so you may want to know your cards well to know which to use for a particular purchase to maximize your rewards. 

For example, if you have a bonus-based cashback card where paying for accommodation attracts some impressive cashback percentages, that is the card to go for when paying for your hotel stay.

Final Words

If you look at your cashback rewards on a per-transaction basis, they may not sound or look like much. But if you consider rewards accumulated over a month, quarterly or year, you may get quite impressed. Even if they may not be enough to pay for big things, they can cater for your coffee.