Cashback credit cards

Cashback offers you a small amount of money back for each pound you spend. But, the interest rates are normally higher, so how do you know if this works out as the best option for you? Our credit card comparison will help you decide.

The credit card market is competitive, with many options for consumers, so how can credit card companies lure you? One of their incentives is cashback.

The concept is simple. For every pound you spend on your credit card, you receive a percentage back. For instance, you might receive £1 for every £100 that you spend. You normally receive this annually, so it might come as a nice bonus at the end of the year.

This depends on how you use your credit card. A cashback credit card is a good option if you pay your balance off in full every month and never pay interest. Why? Because cashback cards often have higher interest rates, but since you don’t pay interest, you should look for other incentives such as cashback.

Not quite so organised or frugal? If you do incur interest on your credit card balance, it is unlikely that a cashback card will be as cost effective as getting a low interest rate credit card.

Cashback credit cards are of little benefit for transferring a credit card balance. Instead, you should be looking for a card with a low interest rate and a 0% introductory offer.