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How to Get the Most Out of Cash-Back Sites

By WTOP Staff

The holiday season is coming, and stores want you. Or your money, anyway. That makes you popular among retailers — and cash-back websites.

If you’ve seen the commercials or heard the term, but you’re not sure how cash-back sites work or if they are a smart way to shop, here’s a rundown on what these sites can and can’t do for you.

How cash-back sites work. The concept is simple, and it’s similar to the cash-back programs many credit cards offer. In this case, instead of going directly to a retailer’s online store to shop, you go to a cash-back website. There, you click on the retailer’s link (assuming the store you’re looking for is on the list) and purchase products. Users register with the cash-back site and are returned a small percentage of what they spend via check or PayPal. (Cash-back sites get a commission for bringing customers to retailers’ sites, which is how they can afford to give you some of your money back.)

When and how much will I get paid? It can take several months — and sometimes much longer — before you receive your money. It can depend on when you accrue a certain amount of savings, like $5. If you go to a cash-back site once and make a tiny purchase but never shop there again, you may never see your money.

The percentage you get paid varies, too. Five percent is the norm, but sometimes it’s a bit less and sometimes quite a bit more, like 12 percent.

The big players. The most successful cash-back site is arguably eBates.com, which has been around since 1998. But there are many other big-name sites, including Sunshine Rewards, FatWallet.com, Extrabux, UPromise (with a focus on saving for college), Ibotta.com, Savings.com, Coupon Cactus, BeFrugal.com, ShopAtHome.com, SavingStar, MyPoints, Swagbucks and CouponCabin.

What to watch out for. Cash-back sites generally have a good reputation. But if you’re considering one you aren’t familiar with, type its name into a search engine along with the word “complaints” and see what comes up (although realize that even the best cash-back sites likely have some negative reviews). If there are a slew of bad reviews, however, that’s a sign the site may be mismanaged. And if any cash-back site requires you to pay a membership fee, it is probably a scam.

“I only use a handful of sites that I trust — the ones that are very reliable and super easy to use. If I can’t sign up within three clicks, I’m not going to sign up for it. That seems to keep you from getting into the spammy sites,” says Lauren Greutman, of Syracuse, New York, who runs a budgeting lifestyle blog, IAmThatLady.com.

Users get a lot of emails containing coupon offers from cash-back sites, Greutman says, so she recommends creating a separate email account to use on these sites.

Strategies to improve your experience. Even with the most reputable cash-back sites, there are ways you can stumble and be disappointed. Keep these points in mind:

Different cash-back sites have different deals. You may want to compare the percentage you’re getting back with other cash-back sites, Greutman says. She says she uses Ebates.com the most, but she also goes to Savings.com and Ibotta.com, among others. She tends to stick with Ebates.com if the cash returned from the retailer through the other sites is less than a 1 percentage point difference.

“They always pay every three months. They call it a big, fat check, although mine’s not usually a big, fat check,” Greutman says. She says on average, she tends to get $25 a quarter and figures that in a typical year, she might receive $100 in cash back from her online shopping.

The cash back comes off the retail price. Sorab Bhardwaj, CEO of Zalyn.com, a website offering rental car deals, also uses Ebates.com and says he once was surprised to see that the cash back he received on airline tickets was much lower than he expected.

Bhardwaj called customer support only to be reminded that the cash back comes off the retail price of the ticket. His airline ticket price included a lot of taxes and was loaded with airline fees.

Think big. The cash-back concept can theoretically pay off if you’re only buying a pack of gum, but you can really start to see the value in these programs when you spend money on a business trip or vacation. Most of the cash-back sites have a travel section, where you can find hotel, airline and travel sites such as Expedia and Orbiz, so you can purchase your tickets, rooms and rental cars — and then later, get cash back.

“It can really pay off if you’re buying airline tickets or hotel stays — those kinds of big purchases we don’t think about — if you go through a cash-back site,” Greutman says. “I think one year, I received a $75 check for one quarter.”

Whatever you’re purchasing, take time to compare cash-back offers. “I don’t bother going through them for stores that offer less than 3 percent cash back, unless I am making a big purchase,” Bhardwaj says.

Don’t think of it as earning money; you’re trying to save money. Some cash-back sites suggest that you’re earning money while shopping. You are not. Instead of getting a 5 or 10 percent off coupon upfront, you’re getting the percentage off later. Granted, it’s fun to receive that savings in the form of a check, but it still represents money you have saved, not earned.

In other words, if you do a lot of online shopping and focus on how much money you’ll get back if you buy expensive merchandise, you may not ask yourself if you really need the product in the first place. And while imagining the big, fat check you’re going to get, you might forget to look elsewhere to see if there’s a better deal.

More from U.S. News

10 Strategies from Super-Saver Shoppers

8 Ways to Maximize Your Credit Card Rewards

The Best Days to Shop for Everything

How to Get the Most Out of Cash-Back Sites originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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