Tips For Choosing Cashback Credit Cards

Did you know it is possible to earn money while you shop? It is true. Get a cashback credit card and you can.

Cashback credit cards work like a normal credit card except for every pound spent on the card the issuer will pay a percentage back to you as cash for you to use as you see fit.

They are still issued under the VISA, Amex or Mastercard banner. They still give you a few days to pay the balance back interest free. And sadly you still have to pay interest on any balances not paid off in full each month.

The first rule of cashback credit card shopping is always pay the balance off in full each month. Failing to follow this simple rule will mean the interest bill will wipe out any cash earned. If you can`t pay off the bill each month, choose a credit card with the lowest rate rather than be seduced by cashback shopping.

Remember too that while some cards may be advertised as a cashback credit card, you might get vouchers to be spent at a specific retailer rather than cash. This might be ok if it is a shop you use but these cards are not as attractive as those offering cash.

And to earn serious money, use your cards more cannily and transfer spending normally done by cheque, cash and other debit, credit and charge cards to your cashback card earning cash all the time. You don`t need to spend more to earn.

Here are the top 5 cashback credit cards on the market:

  1. The Amex Platinum Card pays 5% cashback for first 3 months up to £2000 pa and then up to 1.5% cashback thereafter. There are cheaper cards with lower APRs but provided the balance is paid off each money this card is a winner and APRs irrelevant.
  2. The Egg Money Mastercard gives a flat 1% cashback up to £20,000 pa. The downside with this card is the £1 monthly charge which will eat into earnings.
  3. Argos Mastercard. This pays back 2% on Argos shopping and 1% on purchases made elsewhere but any cash earned can only be used in Argos stores. Argos`s range is huge so this is almost as good as money but it does lose in flexibility compared to the other cards listed. Still worth considering though.
  4. The Bank of Ireland Moneyback Mastercard paying 0.5% up to a maximum spend of £15,000 equating to £75 pa. This card also offers a 0% balance transfer deal for 3 months. Again this is only attractive if you pay back the balance in full each month.
  5. Barclaycard OnePulse Card pays 0.5% to a maximum of £15 per month provided you are over 21 with a good credit rating.

No matter which cashback credit card you pick and provided you are careful with how you use the card, you now have free money and that can`t be bad.

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