Cash Back for Beginners: How to Start Earning
This guide walks a beginner through starting to earn cash back the simple, safe way.
Pick a simple first card
Start with a no-annual-fee cash back card. A flat-rate card that pays the same rate on everything is the simplest, or if a lot of your spending is in one area like groceries or dining, a category card can earn more there. Either way, no annual fee means the card pays for itself from the first dollar, and our best cash back cards guide helps you choose.
Use it and pay it off
Put your normal, everyday spending on the card, the purchases you would make anyway, and then pay the statement balance in full every month. This is the golden rule: interest on a carried balance would quickly erase any cash back, so cash back only works if you pay in full. Setting up autopay makes this automatic.
Redeem and grow
Redeem your cash back the simple way, as a statement credit or a deposit to your bank account, both worth a straightforward one cent each with no strings, as covered in the best way to redeem cash back. Once you are comfortable, you can earn more by adding a category card or eventually exploring points, but there is no rush. Simple, paid-in-full cash back is already a great habit.
- Choose a no-annual-fee flat-rate or category card.
- Use it for everyday spending you would do anyway.
- Always pay the statement in full to avoid interest.
- Redeem as a statement credit or bank deposit.
- Add category cards later to earn more.
Frequently asked questions
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