Why not earn a bit extra when you go shopping and make use of credit card cashback?
Borrowing money doesn’t always have to be bad. If it doesn’t cost you anything or gives you something back then, in fact, it can be a good thing.
Credit cards that offer cashback are a good example of this. All you need to do is spend as you would normally and you receive a little back each time.
Will it cost me?
Not if you keep on top of things. Nearly all credit cards give you up to 59 days of interest-free borrowing. So pay off the card as soon as you receive the bill and it will cost you nothing.
The best credit card cashback deals?
There are far too many cashback credit cards to list here. However, here is a choice of five fee-free cards to consider.
Nationwide offer 0.25% cashback (recently decreased from 0.5%) on any purchase (made in £’s) and there is no limit to how much you can claim.
Other benefits include 0% interest on purchases for the first year and 0% on balance transfers over the same period. And if you make the transfer within the first three months there is no charge. Currently, the Nationwide Select card is only available to their current account holders. Swapping to Nationwide could earn you some free cash.
The Natwest Reward credit card earns you 0.5% on all your shopping. This increases to 1% in supermarkets (excluding their petrol stations) and you can earn 1% at MyRewards partners. This card isn’t strictly free as there is a £24 annual fee attached, but it is free to Natwest Reward current account holders.
The Amazon Platinum Mastercard will earn you at least 0.25% in cashback. This increases if you shop at Amazon. However, you are slightly restricted as all cashback is paid out in the form of Amazon vouchers.
For eligible Amazon Prime members**:
Earn 3 Amazon Reward Points per £2 spent at Amazon.co.uk,
Earn 0.5 Amazon Reward Point per £2 spent everywhere else For everyone else:
Earn 1.5 Amazon Reward Points per £2 spent at Amazon.co.uk,
Earn 0.5 Amazon Reward Point per £2 spent everywhere else 1,000 points = £10 Amazon.co.uk Gift Card
American Express offers a tiered cashback through the Platinum Cashback Everyday Credit Card. If you spend up to £5000 you receive 0.5% cashback. Spend £5001 or more and the cashback rises to 1%. And for the first three months, you will receive 5% up to a maximum of £100.
Unlike the Nationwide card, there are no 0% transfer or purchase incentives. And one sticking point may be that you need to spend a minimum of £3000 a year to receive any cashback. The downside to this card is that American Express isn’t accepted in as many places as Visa or Mastercard.
The Aqua Reward Cashback Credit Card also offers 0.5% cashback. This card is aimed at people with slightly poorer credit ratings, so credit limits may be slightly lower. This card also comes with a higher APR compared to the others listed here.
Don’t forget that purchases with a credit card for anything between £100 – £30,000 will provide you with extra protection. If your item is faulty and the company won’t help, or if the item never reaches you, you can request a refund from your card company.
This is all covered under Section 75 of the Credit Consumer Act. When you’re making major purchases, a credit card is always worth considering as you will not receive the same cover with a debit card. Visit uSwitch if you want to find other credit card cashback offers.
A word of warning…
It is important that you clear your balance every month when you have a credit card. Charges are often quite high and if you start to pay interest, this will quickly wipe out any interest you have earned.
Please note that the rates of cashback were correct at the time of writing. However, companies like to change them, so check they are still correct before signing-up.
But using a credit card isn’t the only way to earn extra. Find out about cashback sites.
Please note that this post contains affiliate links.