A cashback card will literally pay you for spending money. It sounds great doesn't it? Well, essentially, it is.
Providing you always pay off your balance in full every month you can earn a rebate on the value of your purchases. It might not sound all that much, but when you consider getting an annual rebate cheque for £60, for doing nothing more than your usual £6,000 a year spending, it is a substantial amount of 'free' money that should not be scoffed at.
The trick for getting maximum cashback is to make all of your purchases, however small, with your credit card but make sure you read the small print and understand exactly what counts as a purchase and what does not. Any instant transactions such as cash withdrawals and online gambling deposits will begin to accrue interest straight away and can eat into the relative worth of your annual rebate substantially.
Because cashback rates are often better than those on charity credit cards, cashback cards are often seen as a superior alternative as they allow for a greater annual donation (providing you don't get tempted to keep the rebate yourself) to charity.
Cashback cards can also be used alongside store loyalty cards so you will not miss out on any of the rewards that you are currently getting.
In addition to the typical 1% rebate lenders sometimes offer introductory cashback rates of 2% or even 3% so if you were planning on making any large purchases in the near future anyway, signing up for a card with a good introductory off could really pay off!
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