Cash back credit cards
There are so many different credit card options out there to choose from, but many people may be unaware of the advantages that come with a cash back credit card. With this in mind, we've put together a brief guide on what to expect from this great product.
What this guide covers
- What is a cash back card?
- What can they be used for?
- How do they work?
- Is there anything else I need to know?
What is a cash back card?
Effectively, cash back credit cards act in a similar way to rewards or loyalty schemes. However, instead of building up points that you can exchange for discounts, gifts or special offers, a cash back card will give you money back in exchange for using it to pay for supermarket and fuel transactions.
What can they be used for?
Cash back cards operate just like regular credit cards when it comes to everyday use. You can use them in shops as well as to make bookings or purchases for products and services online or over the phone. The key difference is that as the cards come with the cash back incentive, you can effectively earn as you spend on supermarket and fuel transactions.
How do they work?
Basically, all you need to do with a cash back credit card is use it as you would your normal plastic. As you do, we'll credit your account with a percentage of what you spend on supermarket and fuel transactions, which can be claimed back at a later date. You can keep track of how much you're earning this way by checking your statements.
Is there anything else I need to know?
While having a cash back credit card can be a great way to get more for your money, it’s important to remember this doesn’t mean you should spend more freely. As with all forms of credit, it’s important to be sensible about how you use it, but you may find the extra cash you can earn when you do comes in pretty handy.
For that reason, it’s a good idea to get a direct debit set up so you make sure you never miss a payment. You can also set up a direct debit to pay in full every month, if you want. That way, you can keep down the interest repayments and still benefit from the money back incentive.
Finally, you should remember that while spending on this type of card can earn you cash, this is not the case for other types of transaction. For example, you may be able to get a great deal on balance transfers for the card, but this does not mean the balance you take across will generate any extra rewards.
Al things considered, cash back credit cards can be a great addition to your wallet, particularly if you use your card regularly and tend to keep your account paid in full each month. So why not consider the benefits of applying today? Find out more or apply.
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