5 Worst Mistakes to Avoid When Using Amex Cashback Credit Cards

Mistake #1: Not Understanding the Terms and Conditions

As a credit card holder, it's essential to understand the terms and conditions of your Amex cashback credit card before applying. This may seem obvious, but many people fail to read the fine print, which can lead to unexpected fees and charges. According to a survey by CreditCards.com, 62% of credit card holders don't read the terms and conditions before applying for a credit card.

When applying for an Amex cashback credit card, make sure to read the terms and conditions carefully. Look for information on the cashback rewards rate, any spending limits, and the fees associated with the card. It's also essential to understand the credit score requirements and any other eligibility criteria.

For example, the American Express Blue Cash Preferred Card offers a 6% cashback reward on groceries, but it requires a good credit score (720+). If you don't meet the credit score requirements, you may not be approved for the card, or you may be offered a different card with less favorable terms.

By understanding the terms and conditions of your Amex cashback credit card, you can avoid unexpected fees and charges and make the most of your cashback rewards.

Mistake #2: Not Maximizing Cashback Rewards

One of the most significant benefits of Amex cashback credit cards is the potential to earn significant cashback rewards. However, many people fail to maximize their rewards by not using their cards strategically. According to a study by NerdWallet, the average credit card holder earns only $200 in cashback rewards per year.

To maximize your cashback rewards, make sure to use your Amex cashback credit card for all your daily purchases, including groceries, gas, and dining. You can also use your card to earn rewards on larger purchases, such as home improvements or travel.

Additionally, consider using your Amex cashback credit card for bonus categories, such as restaurants or department stores. For example, the American Express Blue Cash Preferred Card offers a 6% cashback reward on groceries, but it also offers a 3% cashback reward on gas and 1% cashback reward on other purchases.

By using your Amex cashback credit card strategically, you can earn significant cashback rewards and make the most of your credit card benefits.

Mistake #3: Not Paying Bills on Time

Paying bills on time is essential to avoid late fees and negative credit reporting. According to a study by Credit Karma, 34% of credit card holders pay their bills late, resulting in an average late fee of $35.

When using an Amex cashback credit card, make sure to pay your bills on time to avoid late fees. Set up automatic payments or reminders to ensure you never miss a payment. You can also consider paying more than the minimum payment to pay off your balance faster and avoid interest charges.

Additionally, consider setting up a budget to track your expenses and ensure you have enough money to pay your bills on time. You can use tools like Mint or Personal Capital to track your expenses and stay on top of your finances.

By paying your bills on time, you can avoid late fees and negative credit reporting, and make the most of your Amex cashback credit card benefits.

Mistake #4: Not Keeping Track of Rewards

Keeping track of your rewards is essential to maximize your cashback earnings. According to a study by CreditCards.com, 45% of credit card holders don't keep track of their rewards, resulting in missed opportunities to earn cashback.

When using an Amex cashback credit card, make sure to keep track of your rewards by checking your statement or online account regularly. You can also use tools like Amex's rewards tracker to monitor your rewards balance and earn rate.

Additionally, consider setting up rewards alerts to notify you when you've earned a certain amount of cashback. You can also use rewards portals to earn additional rewards on your purchases.

By keeping track of your rewards, you can maximize your cashback earnings and make the most of your Amex cashback credit card benefits.

Mistake #5: Not Reviewing Credit Card Offers

Reviewing credit card offers is essential to find the best Amex cashback credit card for your needs. According to a study by CreditCards.com, 62% of credit card holders don't review credit card offers before applying.

When reviewing credit card offers, make sure to compare the terms and conditions, including the cashback rewards rate, fees, and credit score requirements. You can also consider factors like the card's rewards structure, sign-up bonus, and travel benefits.

Additionally, consider using tools like NerdWallet's credit card comparison tool to compare Amex cashback credit cards and find the best offer for your needs.

By reviewing credit card offers, you can find the best Amex cashback credit card for your needs and make the most of your cashback rewards.