How do I make the most of credit card cashback?

Cashback works best when you use the card for expenses you'd be making anyway - gas, groceries, restaurants. The idea is simple: each purchase gives you back a percentage (could be anywhere from 0.5% to 5% depending on the category and the bank), and that money either accumulates in your account or becomes a discount on your bill. The secret is picking a card where the categories you spend the most on have higher cashback. If you eat out a lot, for example, a card that gives 3% at restaurants is way better than a generic one that gives 0.5% on everything.

The catch is spending extra just because you're "getting back" a percentage. If you're buying stuff you don't need just to rack up cashback, you're losing money, not making it. It's also worth checking whether the cashback is worth it compared to the card's annual fee and other charges - often a free card with no perks is better than a premium one that costs you 50 euros a year but only gives you 30 euros in actual cashback.

One more thing: some banks let you choose how you want to receive your cashback (cash, points, direct discount). If you can, ask for cash or use it to pay your next bill - it's clearer how much you actually earned and you avoid getting stuck with points that later "expire" or only work for specific stuff you don't want.

The best way to take advantage of cashback is really to choose the card that gives you the most return on the things you're already spending on. Some banks focus on one category (fuel, groceries, travel) and then the cashback is pretty good - like 2% or 3% - but in other categories it's ridiculous. Other cards give you a decent percentage on everything, like 0.5% to 1%, but at least you don't need to strategically calculate every purchase.

The trick is really not to start spending just because you're going to get a few cents back. I know people who did that and the negative balance is worse than the cashback they earn. The truth is simple: use the card for expenses you'd have to make anyway - grocery shopping, bills you pay online, fuel - and let the cents add up in your account. After a few months it builds up and you notice it.

Another useful thing is to combine your card with occasional promotions. A lot of banks do double or triple cashback in specific periods or with certain partners, and then it's actually worth thinking a bit more. And if you have a card just for everyday purchases where the cashback is decent, always use that one instead of carrying around several. Life gets simpler and the returns concentrate better.