The cash back card is a relatively new arrival in the world of
credit cards. The basic rule is that the rewards are minor and the purchase
interest rate higher - to get cashback of 0.5 - 2% on every purchase,
generally you will have to pay an extra 3 or 4%. The way to beat this
is to pay off your balance every month, if you do not, the extra interest
charged on your balance will generally work out to be more than the cashback
earned.
So, if you are that type of person that uses their credit card a lot and
pays off the balance each month, then this probably is the credit card
for you. Most pay you your cashback in a lump sum at the end of the year.
For the majority of us mere mortals, this is a small amount totalling
less than £20 per annum, but if you are a really high spender, then it
can literally amount to hundereds! (Dont get too excited though, there
is a ceiling on how much cashback you can earn with most card companies).
Still, if you never run up a debt on your credit card, free money is free
money however small an amount!!
Click here to go to our Cashback shortlist
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