Navigating Cash-Back Deals on Credit Cards

"We're all the time building coverage across new industries and smaller merchants," says Beverly Anderson, a vice president at American Express.

The rules can vary on how you get that cash you "earned" by spending. Some companies will automatically credit your award on your next statement, while others might send out a check. Others require you to call and make your claim before a given expiration date. Bill Hardekopf, CEO of LowCards.com, advises that you make sure you're aware of such processes when you sign up for a new card.

Also, don't sign on to the wrong deal in the first place. Hardekopf learned that one the hard way years ago, when he got a card that gave him cash back toward the purchase of a General Motors(GM Quote) vehicle. He accumulated around $1,800, and then when it came time for him to buy a new car, he felt stuck. He hadn't actually wanted a GM.

GM spokeswoman Kelly Cusinato pointed out that her company's cardholders always have the option of taking cash back and spending it on whatever they choose, including cars made by others.

According to the terms on the GM Flexible Earnings Card issued by Household Bank(HBC Quote), you can earn a 3% rebate toward an eligible GM car but you would still get 1% if you wanted only cash back.

Even so, since Hardekopf felt he had to get a GM with his points or he'd waste his money, he's been driving one for years now.

"It was frustrating," Hardekopf says. "I still have this GM truck I don't like."

He recommends that you search for the card that suits your needs best.