Cashback credit cards are a great way to get money paid back to you for your normal spending.

By substituting your debit/credit card for a cashback credit card when you make purchases, you can soon rack up a healthy amount of cashback on the purchases you usually make.

The benefits of cashback are perhaps most telling when you need to make a big purchase, or a series of purchases – such as buying Christmas presents.

As a little aside you might think that booking a holiday using your credit card is a good idea and it can be – but remember that many travel agents and tour operators make a charge for you paying by card. The effect of this will be to lessen, or even exceed any cashback you make so check before booking.

Cashback can also make a welcome addition to your back pocket if your family regularly spends a small fortune in the supermarket and/or petrol station.

The best bit about cashback credit cards is that, used sensibly, they can give you money for nothing!

And it gets better…

When you make a purchase on a credit card, you get the benefit of enhanced purchase protection. That means you’ll be covered (for purchases of between £100 and £60,260) for goods or services that aren’t delivered, or are sub-standard or faulty.

This is why credit cards can be particularly good for online shopping. The credit card provider becomes jointly liable with the merchant for goods or services you buy. So you can claim back the money, or get a replacement from your card provider, even if you can’t get hold of the original merchant!

3 catches with cashback credit cards

Money for nothing – that sounds too good to be true doesn’t it? To make sure you don’t get caught out, be aware of the 3 catches with cashback credit cards:

1. It’s only money for nothing if you’re not paying interest on it. So that means in order for you to make more cashback than you pay in interest, you need to pay off the balance in full, every month.

2. Beware cards that offer cashback but charge an annual fee. In order to get the most out of the card, you need to make sure that the cashback you earn is worth more than any fee you pay.

3. Watch out for cashback credit cards that offer a high introductory cashback rate, but then dwindle it to a low cashback amount later.

Double up on the cashback!

Recently, several cashback websites have sprung up in the UK. These sites, such as Quidco and Top CashBack, give you cashback if you purchase selected goods and services via their sites.

Some of the cashback deals can be extraordinarily generous – but you can make it more generous still by using your cashback credit card to pay!

Should You Consider a Cashback Credit Card?

Should You Consider a Cashback Credit Card?