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What is a Cash Back Credit Card?
To make credit cards more attractive to potential users, the credit card companies offer special rewards or free gifts. The cash back reward scheme has become more popular of late and can be tempting to the right person. |
The card companies offer a small percentage (usually around 1 or 2%) of cash back on the overall purchase amount. For example; If you were to spend £100 on goods paid for on the credit card, then £2 (2%) will be awarded either at the end of the month, they year OR at the end of an agreed initial period.
"Ok" I here you say, "that doesn't sound much", but imagine if you used your cash back credit card for every purchase you made throughout the month i.e. put all shopping on the card for a five person family, fuel, bills and even rent in some cases; the amount put on the card could easily exceed £1000 per month giving you a cash back reward of £20 a month or £240 per year. Sounds better now doesn't it! However you must make sure you make all the repayments on time in order to avoid paying the high interest rates when your purchase exceeds the agreed free period. It's a good idea to setup a direct debit every month to pay your whole credit card bill off to gain the maximum cash back without any problems.
What other awards do credit card companies offer?
It depends on the credit card company, but a lot of companies tie themselves in with well known branded companies to take advantage of the brand name and to offer services offered by that brand name as a reward. For example a credit card company may offer x amount of air miles by British airways for every £100 spent.
Visit www.aph.org.uk and let us find you a cash back credit card. | 
