Cashback Offers.
Checklist for those considering a Cashback Credit Card
Cashback
cards are the most suitable credit card for you if the following points
apply to your particular circumstance:
You always pay off the balance in full every single month. Even
having to pay interest for one month can wipe out all savings made by using a
cash back credit card for purchases.
You are a disciplined spender and do not frequently purchase non-essential
or "impulse" items. This lack of discipline is not necessary a problem if you
are spending money you have, but becomes more of a problem when you are spending
money you have borrowed on a credit card.
You never spend just to collect reward points. This is a major temptation
with reward points and cash back schemes and numerous people fall into the trap
of unnecessarily spending hundereds of pounds over a year, just to realise a
cashback / rewards benefit of a few pounds.
If you have used a credit card with a balance transfer offer, then you do
not use that credit card for purchases, but instead keep the balance transfer
separate from cashback monies. For a detailed explanation of why this is the
case, take a look at our order of credit card payments
information.
The majority of your spending is made up of items when a cash discount
would not be available. This is usually applicable if you shop at small
retailers or, for example, eat at local family run restaurants. Please see our
Earn 1% Cashback or Save 10%
article for more information.
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