How Much Cash Back Credit Do You Keep in Your Account?

[Anonymous]

Just wondering how much cash back credit Fico Forum users keep in their credit card accounts. I'm thinking of letting my balance grow indefinitely so that if anything catastrophic happens I can use the cash back credit to pay my monthly balances. I know keeping a lot of cash back $ in your credit card account is not the smartest thing to do since you could easily claim and deposit it into an interest baring savings account but I like having my cash rewards show a balance. Also does anyone know what happens if the CC company decides to cancel your cash back card? Do you have a chance to claim the cash back balance or is it just gone?

[LS2982]

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@Anonymous wrote:

Just wondering how much cash back credit Fico Forum users keep in their credit card accounts. I'm thinking of letting my balance grow indefinitely so that if anything catastrophic happens I can use the cash back credit to pay my monthly balances. I know keeping a lot of cash back $ in your credit card account is not the smartest thing to do since you could easily claim and deposit it into an interest baring savings account but I like having my cash rewards show a balance. Also does anyone know what happens if the CC company decides to cancel your cash back card? Do you have a chance to claim the cash back balance or is it just gone?

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Welcome to the forums!!!

I have a habit of paying my statements with the CB I earn. Works out nicely for me.

I would think if they closed the account they would still honor your already earned CB.

[Anonymous]

Thanks for being the first to welcome me! I'm really curious to know anyone else keeps or is planning to keep high cash back reward balances. :-)

[LS2982]

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@Anonymous wrote:

Thanks for being the first to welcome me! I'm really curious to know anyone else keeps or is planning to keep high cash back reward balances. :-)

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I'm in the process of PIF my Chase Freedom, I think i'm going to let that stockpile CB. Its my best CB card.

[compassion101]

Pretty sure that most CCs have a stipulation that points become worthless if the card is cancelled. I'm not certain of that but I seem to remember reading that and tbh it is what I would expect.

Either way, it's not something I would advise to stockpile.

[Anonymous]

I'm not sure there's much point to stockpiling a lot of cashback rewards with a credit card.  For rewards points that can be redeemed for free flights, hotel stays, etc., it obviously makes sense to accumulate a lot of them, but I just don't think there's any point to accumulating straight cash back.  You would simply be better off accumulating that in a savings account.  Also, it may vary by lender/card, but I'm pretty sure it's the norm for rewards to be forfeited when an account is closed by either party.  I know some lenders relaxed their policies during the recession when they were cancelling many accounts.  But some (Amex, I'm pretty certain) have reverted back to their old policies now that the mass-account closings have ceased.

[maiden_girl]

I use my points as account credits to lower my balance But I mainly do let my rewards grow rather than redeeming it until I have a lot.

[migliogiorni]

Hmm savings account huh? I'll have to think about that 1.  Was thinking bout saving my CB till x-mas.

[youngandcreditwrthy]

Congrats! This forum ia great... I say do it frequently, bc as many op posted, they can cancel your credit accounts at any time or aa you and you lose out on the rewards.

Might be a good idea to cr your cashback to your balances as LS suggested.

:-) hope that helps!

[crunching_numbers]

I let them accumulate for a little bit then use them as a partial payment.  I have kind of high spending on BCP for groceries (and gas in non Discover or Freedom times).  The highest I have let it climb is Just over $150.00. 

I would not advise usung cash back accumulation as a savings account.  Just pay your bill with it, and take the money you would have paid the CC and put it into savings.