5 Little-Known, Rarely Used Perks of Cash Back Credit Cards

Don’t miss out on these five cash back credit card benefits.

When it comes to picking a credit card, most people focus on finding one with the lowest interest rate. However, there are a number of other benefits to look for in a credit card, including cash back rewards.

Cash back rewards are one of the most popular types of rewards offered by credit cards. And while most people are familiar with the basic premise of cash back rewards -- you receive a percentage of your spending back in the form of cash -- there are a number of lesser-known perks that come with many cash back credit cards. Here are five little-known, rarely used perks of cash back credit cards.

1. Pay for your annual fee or credit card bill

If you have a cash back credit card with an annual fee, you may be able to use your cash back rewards to pay for the fee. You may also be able to get statement credits. A statement credit is money or cash rewards that a credit card issuer credits to your account. This is like getting free money to pay your credit card bill.

Some cash back credit cards send rebate checks directly to their customers rather than depositing the funds into their account. This can be a great way to receive your rewards since you don’t have to worry about remembering to deposit the check and then waiting for it to clear before using the funds. Plus, it’s an easy way to track your rewards since they’re right there in your mailbox each month.

2. Offset future travel expenses

If you have a cash back credit card, you can actually use your cash back rewards to offset future travel expenses. This means that if you spend $1,000 on your card in a year and earn 2% cash back, you'll have $20 to put toward your next trip. This can be a great way to save money on your next vacation.

If you use your rewards to pay for travel expenses, you’ll typically get a higher rate of return on them than if you use them for other types of expenses. So if you’re looking to get the most value out of your rewards, using them for travel is the way to go. Some travel credit cards will also give you a discount on rental cars and hotels. If you rent a car or book a hotel room using your cash back credit card, you may be able to get a discount. For example, some cards offer discounts of up to 20% on rental cars.

3. You can get extended warranty protection on your purchases

If you use your cash back credit card to make a purchase, you may be eligible for extended warranty protection, up to two years depending on the card. This means that if the item you purchased breaks down within the warranty period, you may be able to get it repaired or replaced for free.

To take advantage of the extended warranty, you must use your card to make the purchase and register for the manufacturer's warranty. The credit card's extended policy will typically start after the original warranty expires.

4. You can use your cash back to donate to charity

If you have a cash back credit card, you can actually use your cash back rewards to donate to charity. This is a great way to support a cause you care about without having to spend any extra money.

5. Higher rewards rates and bonuses for certain purchases

Many cash back credit cards offer higher rewards rates for certain types of purchases. For example, some rewards credit cards may offer 3% cash back on gas purchases, while others may offer 5% cash back on restaurant purchases. So, be sure to compare the rewards rates offered by different cards to find the one that will give you the biggest return on your spending.

Many cash back credit cards offer annual or sign-up bonuses as a way to thank their customers for choosing their card. These bonuses can take the form of extra cash back, bonus points, or even free hotel stays or airline tickets. So be sure to check to see if your chosen card offers any bonuses.

As you can see, there are quite a few little-known perks of cash back credit cards. These are just a few of the benefits you may be able to take advantage of if you have one of these cards. Be sure to check with your card issuer to see what benefits are available to you.