I currently have an Amazon Rewards Card that gives me 5% cashback on Amazon purchases. I have the options to redeem the rewards as cash (deposited into my checking account) or to use the rewards directly on Amazon rather than my credit card.
The way I see it, it seems better to just redeem the rewards for cash and use my credit card to make further purchases, because with those purchases I am earning more cashback, which can be further redeemed. If I were to instead use the rewards for the purchases, I wouldn't be earning more cashback.
Does this make sense? Is it really working the way I think it is? Basically, am I earning more cashback by redeeming the cash and using my credit card for purchases, rather than using the rewards for purchases directly?
Furthermore, I now have a new card that also offers cashback rewards. But for this card, I don't see a way to redeem the rewards for cash (unless I choose to have a physical check mailed to me). The other option is to simply have the rewards applied to the credit card itself, I guess to help pay off the balance.
So I'm wondering, does the same idea apply with the second card? Is it better to redeem the rewards for cash instead of applying the rewards to the card, or is this case different and it doesn't matter either way?
Thanks!
Submitted January 19, 2023 at 12:30AM by JohnJSal https://ift.tt/4xuNJiT
